Leslie's, Inc. ("Leslie's" or "the Company”; NASDAQ: LESL), the
largest and most trusted direct-to-consumer brand in the U.S. pool
and spa care industry, today announced its financial results for
the fourth quarter and fiscal 2021.
Mike Egeck, Chief Executive Officer, commented, “We closed out
our strongest year in Leslie’s history with a record fourth quarter
performance as the execution of our strategic growth initiatives
drove significant sales growth and cash generation. These results
are a testament to the caliber of our teams and the deep
partnerships we have with our vendor community that enabled us to
meet the heightened customer demand we saw throughout the
year.”
Mr. Egeck continued, “As we look ahead into fiscal 2022, our
continued investment in talent and strategic growth initiatives put
us in a position to drive additional share gains. The strength of
our balance sheet and our long history of strong and consistent
free cash flow generation allows us to both invest in our
initiatives and to initiate a return of capital to shareholders
through a new $300 million share buyback authorization. This
illustrates our confidence in our business and growth profile as
well as our commitment to delivering shareholder value in 2022 and
beyond.”
The fourth quarter and full year of fiscal 2020 ended October 2,
2020 contained one additional week (the “53rd week”), which added
approximately $18 million in sales, $1.5 million in net income, and
$3.0 million in Adjusted EBITDA. In addition, the additional week
in fiscal 2020 created a calendar shift in fiscal 2021 that
impacted comparability of quarterly sales and earnings to the prior
year. The combination of the 53rd week and the calendar shift
negatively impacted fourth quarter comparisons to the prior year by
approximately $38 million for sales and by approximately $11
million for Adjusted EBITDA.
For the Thirteen-Weeks Ended October 2, 2021
Highlights
- Sales increased $26.0 million or 6.8% to $408.9 million
compared to $382.9 million in the prior year period which included
14 weeks. Comparable sales on a reported basis increased 10.0%
compared to the prior year period. On a shifted basis, using a
realigned period in 2020 for comparability given the 53rd week in
fiscal 2020, comparable sales increased 16.3%.
- Gross profit increased $19.1 million or 11.3% to $188.1 million
compared to $169.0 million in the prior year period and gross
margin increased 190 basis points to 46.0% compared to 44.1% in the
prior year period.
- SG&A increased $21.5 million or 21.6% to $120.9 million
compared to $99.4 million in the prior year period, driven by the
increase in overall sales and continued investments to support
Company growth. SG&A as a percentage of sales increased 360
basis points to 29.6% compared to 26.0% in the prior year
period.
- Operating income was $67.1 million compared to $69.5 million in
the prior year period.
- Net income increased to $44.5 million from $42.6 million in the
prior year period.
- Adjusted net income increased $6.2 million or 14.0% to $50.5
million compared to $44.3 million in the prior year period.
- Diluted earnings per share decreased to $0.23 compared to $0.27
in the prior year period. Adjusted diluted earnings per share
decreased to $0.26 compared to $0.28 in the prior year period.
Diluted and adjusted diluted earnings per share decreased in the
fourth quarter of fiscal 2021 when compared to the prior year
period primarily due to the 53rd week in fiscal 2020, the impact of
the calendar shift, and the increase in shares outstanding as a
result of our Initial Public Offering completed in the first
quarter of fiscal 2021.
- Adjusted EBITDA increased to $82.0 million compared to $80.1
million in the prior year period, an increase of $1.9 million or
2.4%. Using a realigned period in 2020 for comparability given the
53rd week in fiscal 2020, Adjusted EBITDA increased $12.7 million
or 18.3%. Adjusted EBITDA as a percentage of sales on a reported
basis was 20.0% compared to 20.9% in the prior year period.
For the Fifty-Two Weeks Ended October 2, 2021
Highlights
- Sales increased $230.7 million or 20.7% to $1,342.9 million
compared to $1,112.2 million in fiscal 2020 which included 53
weeks. Comparable sales on a reported basis increased 21.5% in
fiscal 2021 compared to fiscal 2020. On a shifted basis, using a
realigned period in 2020 for comparability given the 53rd week in
fiscal 2020, comparable sales increased 21.2%.
- Gross profit increased $134.5 million or 29.2% to $595.2
million compared to $460.7 million in fiscal 2020, and gross margin
was 44.3% compared to 41.4% in fiscal 2020, an increase of 290
basis points.
- SG&A increased $71.8 million or 22.8% to $386.1 million
compared to $314.3 million in fiscal 2020. SG&A as a percentage
of sales increased 40 basis points to 28.7% compared to 28.3% in
fiscal 2020.
- Operating income was $209.1 million compared to $146.4 million
in fiscal 2020.
- Net income increased to $126.6 million compared to $58.6
million in fiscal 2020.
- Adjusted net income increased $96.5 million or 148.5% to $161.5
million compared to $65.0 million in fiscal 2020.
- Diluted earnings per share increased to $0.67 compared to $0.37
in fiscal 2020. Adjusted diluted earnings per share increased $0.43
to $0.85 compared to $0.42 in fiscal 2020.
- Adjusted EBITDA increased $87.8 million or 48.0% to $270.6
million compared to $182.8 million in fiscal 2020. Adjusted EBITDA
as a percentage of sales increased 380 basis points to 20.2%
compared to 16.4% in fiscal 2020.
Balance Sheet and Cash Flow Highlights
- Cash and cash equivalents totaled $345.1 million as of fiscal
2021 compared to $157.1 million as of fiscal 2020, an increase of
$188.0 million. There were no revolver borrowings as of year-end
fiscal 2021 and 2020.
- Inventories totaled $198.8 million as of fiscal 2021 compared
to $149.0 million as of fiscal 2020 reflecting a continued
investment in inventory to meet heightened consumer demand.
- Funded debt totaled $806.0 million as of fiscal 2021 compared
to $1,201.2 million as of fiscal 2020. The reduction resulted from
the paydown of our senior unsecured notes totaling $390 million
with primary proceeds from our initial public offering in the first
quarter of fiscal 2021. During the fourth quarter of fiscal 2021,
our debt rating was upgraded by S&P to BB- from B+ and by
Moody's to Ba3 from B1.
- Net cash provided by operating activities totaled $169.6
million in fiscal 2021 compared to $103.4 million in fiscal
2020.
- Capital expenditures totaled $28.9 million in fiscal 2021
compared to $20.6 million in fiscal 2020.
Share Repurchase Authorization
On December 3, 2021, the Board of Directors authorized a share
repurchase program for up to an aggregate amount of $300 million of
its outstanding shares of common stock over the next three years.
The level of repurchases depends on a number of factors, including
its financial condition, capital requirements, cash flows, results
of operations, future business prospects and other factors its
management may deem relevant. The timing, volume and nature of
repurchases, are subject to market conditions, applicable
securities laws and other factors and may be amended, suspended or
discontinued at any time. Shares may be repurchased from time to
time on the open market, in privately negotiated transactions, or
otherwise.
Fiscal 2022 Guidance
We expect the following for fiscal 2022, a 52-week period:
Sales |
|
$1,475 to $1,500 million |
Gross
profit |
|
$655 to $665 million |
Net
income |
|
$170 to $180 million |
Adjusted
net income |
|
$180 to $190 million |
Adjusted
EBITDA |
|
$295 to $305 million |
Adjusted
diluted earnings per share |
|
$0.94 to $1.00 |
Diluted
weighted average shares outstanding (1) |
|
190 to 192 million |
(1) Assumes share repurchase program impact of approximately
three million shares in fiscal 2022. |
Conference Call Details
A conference call to discuss its financial results for the
fourth quarter of fiscal 2021 is scheduled for today, Thursday,
December 9, 2021 at 4:30 p.m. Eastern Time. Investors and analysts
interested in participating in the call are invited to dial
855-327-6837 (international callers please dial 1-631-891-4304)
approximately 10 minutes prior to the start of the call. A live
audio webcast of the conference call will be available online at
https://ir.lesliespool.com/.
A recorded replay of the conference call will be available
within approximately three hours of the conclusion of the call and
can be accessed, along with the associated slides, online at
https://ir.lesliespool.com/ for 90 days.
About Leslie's
Founded in 1963, Leslie's is the largest direct-to-consumer
brand in the U.S. pool and spa care industry, serving residential,
professional, and commercial consumers. Leslie's markets its
products through more than 950 physical locations and multiple
digital platforms. Our associates, pool and spa care experts, and
certified technicians are passionate about empowering consumers
with the knowledge, products, and solutions necessary to
confidently maintain and enjoy their pools and spas.
Use of Non-GAAP Financial Measures and Other Operating
Measures
In addition to reporting financial results in accordance with
accounting principles generally accepted in the United States
(“GAAP”), we use certain non-GAAP financial measures and other
operating measures, including comparable sales growth and Adjusted
EBITDA, Adjusted net income, and Adjusted earnings per share, to
evaluate the effectiveness of its business strategies, to make
budgeting decisions, and to compare its performance against that of
other peer companies using similar measures. These non-GAAP
financial measures and other operating measures should not be
considered in isolation or as substitutes for our results as
reported under GAAP. In addition, these non-GAAP financial measures
and other operating measures are not calculated in the same manner
by all companies, and accordingly, are not necessarily comparable
to similarly titled measures of other companies and may not be
appropriate measures for performance relative to other
companies.
Comparable Sales Growth
We measure comparable sales growth as the increase or decrease
in sales recorded by the comparable base in any reporting period,
compared to sales recorded by the comparable base in the prior
reporting period. The comparable base includes sales through our
locations and through our e-commerce websites and third-party
marketplaces. Comparable sales growth is a key measure used by
management and our board of directors to assess our financial
performance.
Adjusted EBITDA
Adjusted EBITDA is a key measure used by management and our
board of directors to assess our financial performance. Adjusted
EBITDA is also frequently used by analysts, investors, and other
interested parties to evaluate companies in our industry, when
considered alongside other GAAP measures.
Adjusted EBITDA is defined as earnings before interest
(including amortization of debt costs), taxes, depreciation and
amortization, management fees, equity-based compensation expense,
loss on debt extinguishment, costs related to equity offerings,
executive transition costs, loss (gain) on disposition of assets,
mark-to-market on interest rate cap, and other non-recurring,
non-cash or discrete items. Adjusted EBITDA is not a recognized
measure of financial performance under GAAP but is used by some
investors to determine a company’s ability to service or incur
indebtedness. Adjusted EBITDA should not be construed as an
indicator of a company’s operating performance in isolation from,
or as a substitute for, net income, cash flows from operations or
cash flow data, all of which are prepared in accordance with GAAP.
We have presented Adjusted EBITDA solely as supplemental disclosure
because we believe it allows for a more complete analysis of
results of operations. Adjusted EBITDA is not intended to
represent, and should not be considered more meaningful than, or as
an alternative to, measures of operating performance as determined
in accordance with GAAP. In the future, we may incur expenses or
charges such as those included in the calculation of Adjusted
EBITDA. Our presentation of Adjusted EBITDA should not be construed
as an inference that our future results will be unaffected by these
items.
Adjusted Net Income and Adjusted Earnings per Share
Adjusted net income and Adjusted earnings per share are
additional key measures used by management and our board of
directors to assess our financial performance. Adjusted net income
and Adjusted earnings per share are also frequently used by
analysts, investors, and other interested parties to evaluate
companies in our industry, when considered alongside other GAAP
measures.
Adjusted net income is defined as net income adjusted to exclude
management fees, equity-based compensation expense, loss on debt
extinguishment, costs related to equity offerings, executive
transition costs, loss (gain) on disposition of assets,
mark-to-market on interest rate cap, and other non-recurring,
non-cash or discrete items. Adjusted diluted earnings per share is
defined as Adjusted net income divided by the diluted weighted
average number of common shares outstanding.
Forward Looking Statements
This press release contains forward-looking statements about us
and our industry that involve substantial risks and uncertainties.
All statements other than statements of historical facts contained
in this press release, including statements regarding our future
results of operations or financial condition, business strategy and
plans and objectives of management for future operations, are
forward-looking statements. In some cases, you can identify
forward-looking statements because they contain words such as
“anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “target,” “will,” or “would” or the
negative of these words or other similar terms or expressions. Our
actual results could differ materially from those indicated in
these forward-looking statements for a variety of reasons,
including, among others:
- our ability to execute on our growth strategies;
- our ability to maintain favorable relationships with suppliers
and manufacturers;
- competition from mass merchants and specialty retailers;
- impacts on our business from the sensitivity of our business to
weather conditions, changes in the economy, and the housing
market;
- our ability to implement technology initiatives that deliver
the anticipated benefits, without disrupting our operations;
- regulatory changes and development affecting our current and
future products;
- our ability to obtain additional capital to finance
operations;
- commodity price inflation and deflation;
- impacts on our business from the COVID-19 pandemic;
- impacts on our business from cyber and other security threats
or disruptions; and
- other risks and uncertainties, including those listed in the
section titled “Risk Factors” in our filings with the U.S.
Securities and Exchange Commission.
You should not rely on forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this press release primarily on our current
expectations and projections about future events and trends that we
believe may affect our business, financial condition, and operating
results. The outcome of the events described in these
forward-looking statements is subject to risks, uncertainties, and
other factors described above. Moreover, we operate in a very
competitive and rapidly changing environment. New risks and
uncertainties emerge from time to time, and it is not possible for
us to predict all risks and uncertainties that could have an impact
on the forward-looking statements contained in this press release.
The results, events, and circumstances reflected in the
forward-looking statements may not be achieved or occur, and actual
results, events, or circumstances could differ materially from
those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements
reflect our beliefs and opinions on the relevant subject based on
information available to us as of the date of this press release.
And while we believe that information provides a reasonable basis
for these statements, that information may be limited or
incomplete. Our statements should not be read to indicate that we
have conducted an exhaustive inquiry into, or review of, all
relevant information. These statements are inherently uncertain,
and investors are cautioned not to unduly rely on these
statements.
The forward-looking statements made in this press release are
based on events or circumstances as of the date on which the
statements are made. We undertake no obligation to update any
forward-looking statements made in this press release to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
except as required by law. We may not actually achieve the plans,
intentions, or expectations disclosed in our forward-looking
statements, and you should not place undue reliance on our
forward-looking statements. Our forward-looking statements do not
reflect the potential impact of any future acquisitions, mergers,
dispositions, joint ventures, or investments.
ContactInvestorsFarah Soi/Caitlin
ChurchillICRinvestorrelations@lesl.com
|
Consolidated Statements of
Operations(amounts in thousands, except per share
amounts) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
October 2, 2021 |
|
October 3, 2020 (1) |
|
October 2, 2021 |
|
October 3, 2020 (1) |
|
|
(Unaudited) |
|
|
(Audited) |
|
|
(Unaudited) |
|
|
(Audited) |
|
Sales |
|
$ |
408,926 |
|
|
$ |
382,944 |
|
|
$ |
1,342,917 |
|
|
$ |
1,112,229 |
|
Cost of
merchandise and services sold |
|
|
220,862 |
|
|
|
213,990 |
|
|
|
747,757 |
|
|
|
651,516 |
|
Gross
profit |
|
|
188,064 |
|
|
|
168,954 |
|
|
|
595,160 |
|
|
|
460,713 |
|
Selling,
general and administrative expenses |
|
|
120,948 |
|
|
|
99,405 |
|
|
|
386,075 |
|
|
|
314,338 |
|
Operating income |
|
|
67,116 |
|
|
|
69,549 |
|
|
|
209,085 |
|
|
|
146,375 |
|
Other
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
7,369 |
|
|
|
19,501 |
|
|
|
34,410 |
|
|
|
84,098 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
9,169 |
|
|
|
— |
|
Other expenses, net |
|
|
460 |
|
|
|
179 |
|
|
|
2,377 |
|
|
|
1,089 |
|
Total
other expense |
|
|
7,829 |
|
|
|
19,680 |
|
|
|
45,956 |
|
|
|
85,187 |
|
Income
before taxes |
|
|
59,287 |
|
|
|
49,869 |
|
|
|
163,129 |
|
|
|
61,188 |
|
Income
tax expense |
|
|
14,746 |
|
|
|
7,229 |
|
|
|
36,495 |
|
|
|
2,627 |
|
Net
income |
|
$ |
44,541 |
|
|
$ |
42,640 |
|
|
$ |
126,634 |
|
|
$ |
58,561 |
|
Earnings
per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.23 |
|
|
$ |
0.27 |
|
|
$ |
0.68 |
|
|
$ |
0.37 |
|
Diluted |
|
$ |
0.23 |
|
|
$ |
0.27 |
|
|
$ |
0.67 |
|
|
$ |
0.37 |
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
189,582 |
|
|
|
156,500 |
|
|
|
185,412 |
|
|
|
156,500 |
|
Diluted |
|
|
192,729 |
|
|
|
156,500 |
|
|
|
190,009 |
|
|
|
156,500 |
|
Other Financial Data (unaudited)
(2)
|
|
Three Months Ended |
|
Year Ended |
|
|
October 2, 2021 |
|
October 3, 2020 (1) |
|
October 2, 2021 |
|
October 3, 2020 (1) |
Adjusted EBITDA |
|
$ |
81,982 |
|
|
$ |
80,056 |
|
|
$ |
270,613 |
|
|
$ |
182,770 |
|
Adjusted
net income |
|
$ |
50,514 |
|
|
$ |
44,305 |
|
|
$ |
161,478 |
|
|
$ |
64,973 |
|
Adjusted
earnings per share - Basic |
|
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.87 |
|
|
$ |
0.42 |
|
Adjusted
earnings per share - Diluted |
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.85 |
|
|
$ |
0.42 |
|
(1) |
The three
months ended and year ended October 3, 2020 included 14 weeks and
53 weeks, respectively. The amounts for the three months ended
October 3, 2020 differ from amounts previously reported, as a
result of the retrospective presentation of the effects of the
adoption of accounting standards updates for revenue recognition
and leases (Topics 606 and 842, respectively) which were adopted on
October 3, 2020. The amounts for the year ended October 3, 2020
included the full year impact and no amounts differ. |
|
|
(2) |
See section titled “GAAP to Non-GAAP Reconciliation”. |
|
|
Consolidated Balance Sheets (amounts in
thousands, except share and per share amounts) |
|
|
|
October 2, 2021 |
|
|
October 3, 2020 |
|
Assets |
|
(Unaudited) |
|
|
(Audited) |
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
345,057 |
|
|
$ |
157,072 |
|
Accounts and other receivables, net |
|
|
38,860 |
|
|
|
31,481 |
|
Inventories |
|
|
198,789 |
|
|
|
148,966 |
|
Prepaid expenses and other current assets |
|
|
20,564 |
|
|
|
22,661 |
|
Total
current assets |
|
|
603,270 |
|
|
|
360,180 |
|
Property
and equipment, net |
|
|
70,335 |
|
|
|
66,391 |
|
Operating lease right-of-use assets |
|
|
212,284 |
|
|
|
177,655 |
|
Goodwill
and other intangibles, net |
|
|
129,020 |
|
|
|
121,186 |
|
Deferred
tax assets |
|
|
3,734 |
|
|
|
6,583 |
|
Other
assets |
|
|
25,148 |
|
|
|
14,443 |
|
Total
assets |
|
$ |
1,043,791 |
|
|
$ |
746,438 |
|
Liabilities and stockholders’ deficit |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
235,156 |
|
|
$ |
193,539 |
|
Operating lease liabilities |
|
|
61,071 |
|
|
|
54,459 |
|
Income taxes payable |
|
|
6,945 |
|
|
|
1,857 |
|
Current portion of long-term debt |
|
|
8,100 |
|
|
|
8,341 |
|
Total
current liabilities |
|
|
311,272 |
|
|
|
258,196 |
|
Operating lease liabilities, noncurrent |
|
|
160,037 |
|
|
|
130,234 |
|
Long-term debt, net |
|
|
786,125 |
|
|
|
1,179,550 |
|
Other
long-term liabilities |
|
|
3,915 |
|
|
|
5,457 |
|
Total
liabilities |
|
|
1,261,349 |
|
|
|
1,573,437 |
|
Commitments and contingencies |
|
|
|
|
|
|
Stockholders’ deficit |
|
|
|
|
|
|
Common stock, $0.001 par value, 1,000,000,000 shares authorized
and |
|
|
|
|
|
|
|
|
189,821,011 issued and outstanding as of October 2, 2021 and
156,500,000 shares authorized, issued and outstanding as of October
3, 2020, respectively. |
|
|
190 |
|
|
|
157 |
|
Additional paid in capital (deficit) |
|
|
204,711 |
|
|
|
(278,063 |
) |
Retained
deficit |
|
|
(422,459 |
) |
|
|
(549,093 |
) |
Total
stockholders’ deficit |
|
|
(217,558 |
) |
|
|
(826,999 |
) |
Total
liabilities and stockholders’ deficit |
|
$ |
1,043,791 |
|
|
$ |
746,438 |
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
(amounts in thousands) |
|
|
|
Year Ended |
|
|
|
October 2, 2021 |
|
|
October 3, 2020 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
Operating Activities |
|
|
|
|
|
|
Net income |
|
$ |
126,634 |
|
|
$ |
58,561 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
26,553 |
|
|
|
28,925 |
|
Equity-based compensation |
|
|
24,217 |
|
|
|
1,785 |
|
Amortization of deferred financing costs and debt discounts |
|
|
2,483 |
|
|
|
3,489 |
|
Provision for doubtful accounts |
|
|
2,105 |
|
|
|
577 |
|
Deferred income taxes |
|
|
2,848 |
|
|
|
(7,823 |
) |
(Gain) loss on disposition of assets |
|
|
(1,606 |
) |
|
|
785 |
|
Loss on debt extinguishment |
|
|
9,169 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts and other receivables |
|
|
(9,484 |
) |
|
|
1,813 |
|
Inventories |
|
|
(47,787 |
) |
|
|
1,762 |
|
Prepaid expenses and other current assets |
|
|
2,674 |
|
|
|
(14,959 |
) |
Other assets |
|
|
(11,164 |
) |
|
|
(13,023 |
) |
Accounts payable and accrued expenses |
|
|
36,044 |
|
|
|
39,336 |
|
Income taxes payable |
|
|
5,088 |
|
|
|
(4,856 |
) |
Operating lease assets and liabilities, net |
|
|
1,786 |
|
|
|
7,037 |
|
Net cash
provided by operating activities |
|
|
169,560 |
|
|
|
103,409 |
|
Investing Activities |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(28,931 |
) |
|
|
(20,630 |
) |
Business acquisitions, net of cash acquired |
|
|
(8,868 |
) |
|
|
(6,188 |
) |
Proceeds from disposition of fixed assets |
|
|
2,444 |
|
|
|
7 |
|
Net cash
used in investing activities |
|
|
(35,355 |
) |
|
|
(26,811 |
) |
Financing Activities |
|
|
|
|
|
|
Borrowings on revolving commitment |
|
|
— |
|
|
|
238,750 |
|
Payments on revolving commitment |
|
|
— |
|
|
|
(238,750 |
) |
Repayment of long term debt |
|
|
(396,135 |
) |
|
|
(10,425 |
) |
Issuance of long term debt |
|
|
907 |
|
|
|
— |
|
Payment of deferred financing costs |
|
|
(9,579 |
) |
|
|
— |
|
Payment of dividend |
|
|
— |
|
|
|
— |
|
Proceeds from issuance of common stock upon initial public
offering, net |
|
|
458,587 |
|
|
|
— |
|
Net cash
provided by (used in) financing activities |
|
|
53,780 |
|
|
|
(10,425 |
) |
Net
increase in cash and cash equivalents |
|
|
187,985 |
|
|
|
66,173 |
|
Cash and
cash equivalents, beginning of year |
|
|
157,072 |
|
|
|
90,899 |
|
Cash and
cash equivalents, end of year |
|
$ |
345,057 |
|
|
$ |
157,072 |
|
Supplemental Information: |
|
|
|
|
|
|
Interest |
|
$ |
36,408 |
|
|
$ |
88,678 |
|
Income taxes, net of refunds received |
|
|
28,559 |
|
|
|
15,305 |
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliation(amounts in
thousands except per share
amounts)(unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
October 2, 2021 |
|
October 3, 2020 (1) |
|
October 2, 2021 |
|
October 3, 2020 (1) |
Net income |
|
$ |
44,541 |
|
|
$ |
42,640 |
|
|
$ |
126,634 |
|
|
$ |
58,561 |
|
Interest
expense |
|
|
7,369 |
|
|
|
19,501 |
|
|
|
34,410 |
|
|
|
84,098 |
|
Income
tax expense |
|
|
14,746 |
|
|
|
7,229 |
|
|
|
36,495 |
|
|
|
2,627 |
|
Depreciation and amortization expense(2) |
|
|
7,348 |
|
|
|
8,463 |
|
|
|
26,553 |
|
|
|
28,925 |
|
Management fees(3) |
|
|
— |
|
|
|
1,752 |
|
|
|
382 |
|
|
|
4,900 |
|
Equity-based compensation expense(4) |
|
|
5,030 |
|
|
|
(8 |
) |
|
|
25,621 |
|
|
|
1,785 |
|
Loss on
debt extinguishment(5) |
|
|
— |
|
|
|
— |
|
|
|
9,169 |
|
|
|
— |
|
Costs
related to equity offerings(6) |
|
|
458 |
|
|
|
— |
|
|
|
10,444 |
|
|
|
— |
|
Executive transition costs and other(7) |
|
|
2,490 |
|
|
|
479 |
|
|
|
905 |
|
|
|
1,874 |
|
Adjusted
EBITDA |
|
$ |
81,982 |
|
|
$ |
80,056 |
|
|
$ |
270,613 |
|
|
$ |
182,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
October 2, 2021 |
|
October 3, 2020 (1) |
|
October 2, 2021 |
|
October 3, 2020 (1) |
Net
income |
|
$ |
44,541 |
|
|
$ |
42,640 |
|
|
$ |
126,634 |
|
|
$ |
58,561 |
|
Management fees(3) |
|
|
— |
|
|
|
1,752 |
|
|
|
382 |
|
|
|
4,900 |
|
Equity-based compensation expense(4) |
|
|
5,030 |
|
|
|
(8 |
) |
|
|
25,621 |
|
|
|
1,785 |
|
Loss on
debt extinguishment(5) |
|
|
— |
|
|
|
— |
|
|
|
9,169 |
|
|
|
— |
|
Costs
related to equity offerings(6) |
|
|
458 |
|
|
|
— |
|
|
|
10,444 |
|
|
|
— |
|
Executive transition costs and other(7) |
|
|
2,490 |
|
|
|
479 |
|
|
|
905 |
|
|
|
1,874 |
|
Tax
effects of these adjustments(8) |
|
|
(2,005 |
) |
|
|
(558 |
) |
|
|
(11,677 |
) |
|
|
(2,147 |
) |
Adjusted
net income |
|
$ |
50,514 |
|
|
$ |
44,305 |
|
|
$ |
161,478 |
|
|
$ |
64,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
October 2, 2021 |
|
October 3, 2020 (1) |
|
October 2, 2021 |
|
October 3, 2020 (1) |
Adjusted
earnings per share - basic |
|
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.87 |
|
|
$ |
0.42 |
|
Adjusted
earnings per share - diluted |
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.85 |
|
|
$ |
0.42 |
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
189,582 |
|
|
|
156,500 |
|
|
|
185,412 |
|
|
|
156,500 |
|
Diluted |
|
|
192,729 |
|
|
|
156,500 |
|
|
|
190,009 |
|
|
|
156,500 |
|
(1) |
The three
months ended and year ended October 3, 2020 included 14 weeks and
53 weeks, respectively. The amounts for the three months ended
October 3, 2020 differ from amounts previously reported, as a
result of the retrospective presentation of the effects of the
adoption of Topics 606 and 842 which were adopted on October 3,
2020. The amounts for the year ended October 3, 2020 included the
full year impact and no amounts differ. |
(2) |
Includes depreciation related to our distribution centers and
locations, which is reported in cost of merchandise and services
sold in our consolidated statements of operations. |
(3) |
Represents amounts paid or accrued in connection with our
management services agreement, which was terminated upon the
completion of our IPO in November 2020 and are reported in SG&A
in our consolidated statements of operations. |
(4) |
Represents charges related to equity-based compensation and the
related Company payroll tax expense which are reported in SG&A
in our consolidated statements of operations. |
(5) |
Represents non-cash expense due to the write-off of deferred
financing costs related to our Term Loan modification and the
repayment of our senior unsecured notes in fiscal 2021 and are
reported in loss on debt extinguishment in our consolidated
statements of operations. |
(6) |
Includes one-time payments of contractual amounts incurred in
connection with our IPO that was completed in November 2020 which
are reported in SG&A, and costs incurred for follow-on equity
offerings in February, June and September 2021 which are reported
in other expenses, net in our consolidated statements of
operations. |
(7) |
Includes executive transition costs, losses (gains) on
disposition of fixed assets, mark-to-market on interest rate cap
and other non-recurring, non-cash or discrete items as determined
by management. Amounts are reported in SG&A and other expenses,
net in our consolidated statements of operations. |
(8) |
Represents the tax effect of the total adjustments based on our
actual statutory tax rate. Amounts are reported in income tax
expense in our consolidated statements of operations. |
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