Sales increased 2.5%
Comparable store sales increased
0.3%
Entering the U.S. Southeast with seven store
acquisition
Net store growth now targeted at 29 in 2024
with acquisition
Savers Value Village, Inc. (NYSE: SVV), (the “Company”) today
announced financial results for the thirteen weeks ended March 30,
2024 (the “first quarter”).
Highlights for the First Quarter,
Compared to the thirteen weeks ended April 1, 2023
- Net sales increased 2.5% to $354.2 million.
- Comparable store sales increased 0.3%, with the United States
(“U.S.”) up 2.3% and Canada down 2.6%.
- Sales yield2 increased 1.4% to $1.41 per pound.
- The Company ended the first quarter with 326 stores, increasing
its store count by 2.8%.
- Net loss of $0.5 million, or $0.00 per diluted share.
- Adjusted net income1 increased 32.3% to $13.9 million and
Adjusted net income per diluted share1 was $0.08.
- Adjusted earnings before interest, taxes, depreciation and
amortization (“Adjusted EBITDA”)1 increased 2.1% to $60.3 million,
and Adjusted EBITDA margin1 decreased 10 basis points to 17.0%.
Changes in foreign currency rates positively impacted Adjusted
EBITDA1 by $0.2 million during the first quarter.
- Total active members enrolled in our U.S. and Canadian loyalty
programs increased 12.2% to 5.5 million.
Mark Walsh, Chief Executive Officer, commented, “Our first
quarter results were in line with our expectations and guidance.
Demand trends in the U.S. were strong and relatively consistent
throughout the quarter, our new stores are performing well and
ramping in line with plan, and the acquisition in Georgia provides
an entry point into a new and high-growth region where we have no
presence. With this acquisition, we now plan to add a total of 29
net new stores this year. While the macro environment in Canada is
putting some pressure on our lower income customer segment, we have
aligned processing levels to recent demand trends. We have also
taken a number of steps to strengthen our balance sheet over the
past several months and expect to end the year with net leverage
around 1.5 times.”
1 Adjusted net income, Adjusted net income
per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as
well as amounts presented on a constant currency basis, are not
measures recognized under U.S. generally accepted accounting
principles (“GAAP”). For additional information on our use of
non-GAAP financial measures, see “Non-GAAP Financial Measures”,
“Constant Currency” and the accompanying financial tables which
reconcile GAAP financial measures to these non-GAAP measures.
2 We define sales yield as retail sales
generated per pound processed on a currency neutral and comparable
store basis.
Subsequent Events
Acquisition of Thrift Store Chain with Seven Locations in
Atlanta, GA
On May 6, 2024, the Company acquired 2 Peaches Group, LLC (“2
Peaches”), a thrift store chain with seven locations in the
Atlanta, Georgia metropolitan area. The acquired stores are the
Company’s first locations in the state of Georgia and will serve as
a base for the Company’s entrance and expansion into the southeast
region of the U.S.
Michael Maher Named as Chief Financial Officer
In a separate press release dated May 9, 2024, the Company
announced that Michael Maher has been appointed to the role of
Chief Financial Officer (“CFO”), replacing current CFO, Jay Stasz,
effective May 13, 2024. Mr. Maher will be based at the Company’s
headquarters in Bellevue, Washington and will report to Mark Walsh,
Chief Executive Officer. In order to assist with a successful
transition, Mr. Stasz has agreed to remain employed by the Company
in an advisory role through August 12, 2024.
Mr. Maher is a seasoned finance leader, bringing to the Company
over 25 years of experience in the retail and consumer sectors.
Most recently, he served as Interim Chief Financial Officer at
Nordstrom, Inc., where he spent over 13 years in various senior
finance roles and was instrumental in guiding the company through
periods of transformation. His extensive finance expertise includes
all aspects of business development, financial planning,
accounting, reporting, treasury, tax and investor relations. He
holds a Bachelor of Arts in Business Economics from the University
of California, Los Angeles.
Fiscal 2024 Outlook
The Company’s updated outlook for the fifty-two weeks ended
December 28, 2024 (“fiscal 2024”) is as follows:
- Store base increase of approximately 29, consisting of 22 new
stores (unchanged) and 7 stores from our Two Peaches
acquisition;
- Total net sales of approximately from $1.57 to $1.59 billion
(unchanged);
- Comparable store sales growth of approximately from 2% to 3%
(unchanged);
- Net income of approximately $85 million to $92 million (from
$78 million previously);
- Adjusted net income1 of approximately $126 million to $133
million (from $123 million previously);
- Adjusted EBITDA2 of approximately $330 million to $340 million
(from $340 million previously);
- Capital expenditures of approximately $105 to $115 million
(unchanged); and
- Diluted weighted average common shares outstanding of
approximately 171 million (from 172 million previously).
Included in the outlook figures contained above is contribution
from the Company’s acquisition of 2 Peaches. The 2 Peaches
acquisition closed on May 6, 2024 and will add seven stores to the
U.S. operations beginning in the second quarter ending June 30,
2024. For the period of May 7, 2024 to December 28, 2024, the
acquisition is expected to generate approximately $7 million in net
sales.
1 Adjusted net income is not a measure recognized under GAAP.
For additional information on our use of non-GAAP financial
measures, see “Non-GAAP Financial Measures” and the accompanying
financial tables which reconcile GAAP financial measures to
non-GAAP measures.
2 Adjusted EBITDA is not a measure
recognized under GAAP. We have not reconciled guidance for Adjusted
EBITDA to the corresponding GAAP financial measure because we
cannot determine the probable significance of the various
reconciling items, as certain items are outside of our control and
cannot be reasonably predicted due to the fact that these items
could vary significantly period to period. Accordingly,
reconciliations to the corresponding GAAP financial measure are not
available without unreasonable effort.
Conference Call
Information
A conference call to discuss the first quarter financial results
is scheduled for today, May 9, 2024, at 4:30 p.m. ET.
Investors and analysts who wish to participate in the call are
invited to dial +1 800 549 8228 (international callers, please dial
+1 289 819 1520) approximately 10 minutes prior to the start of the
call. Please reference Conference ID 87107 when prompted. A live
webcast of the conference call will be available over the Internet,
which you may access by logging on to the Investor Relations
section on the Company’s website at
https://ir.savers.com/events-and-presentations/default.aspx.
A recorded replay of the call will be available shortly after
the conclusion of the call and remain available until May 23, 2024.
To access the telephone replay, dial +1 888 660 6264 (international
callers, please dial +1 289 819 1325). The access code for the
replay is 87107#. A replay of the webcast will also be available
within two hours of the conclusion of the call and will remain
available on the website for one year.
About the Savers Value Village™ family of thrift
stores
As the largest for-profit thrift operator in the U.S. and Canada
for value priced pre-owned clothing, accessories and household
goods, our mission is to champion reuse and inspire a future where
secondhand is second nature. Learn more about the Savers family of
thrift stores, our impact, and the #ThriftProud movement at
savers.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and are made in reliance on the safe harbor protections
provided thereunder. Forward looking statements can be identified
by words such as “could,” “may,” “might,” “will,” “likely,”
“anticipates,” “intends,” “plans,” “seeks,” “believes,”
“estimates,” “expects,” “continues,” “projects” and similar
references to future periods, or by the inclusion of forecasts or
projections, the outlook for the Company’s future business,
prospects, financial performance, including its fiscal 2024 outlook
or financial guidance, and industry outlook. Forward-looking
statements are based on the Company’s current expectations and
assumptions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, the Company’s actual results may
differ materially from those contemplated by the forward-looking
statements. Some of the factors that could cause actual results to
differ materially from those expressed or implied by the
forward-looking statements include, but are not limited to: the
impact on both the supply and demand for the Company’s products
caused by general economic conditions and changes in consumer
confidence and spending; the Company’s ability to anticipate
consumer demand and to source and process a sufficient quantity of
quality secondhand items at attractive prices on a recurring basis;
risks related to attracting new, and retaining existing customers,
including by increasing acceptance of secondhand items among new
and growing customer demographics; risks associated with its status
as a “brick and mortar” only retailer and its lack of operations in
the growing online retail marketplace; its failure to open new
profitable stores, or successfully enter new markets on a timely
basis or at all; risks associated with doing business with
international manufacturers and suppliers including, but not
limited to, transportation and shipping challenges, regulatory
risks in foreign jurisdictions (particularly in Canada, where the
Company maintains extensive operations) and exchange rate risks,
which the Company may not choose to fully hedge; the loss of, or
disruption or interruption in the operations of, its centralized
distribution centers; risks associated with litigation, the expense
of defense, and the potential for adverse outcomes; its failure to
properly hire and to retain key personnel and other qualified
personnel or to manage labor costs; risks associated with the
timely and effective deployment, protection, and defense of
computer networks and other electronic systems, including e-mail;
changes in government regulations, procedures and requirements; its
ability to maintain an effective system of internal controls and
produce timely and accurate financial statements or comply with
applicable regulations; risks associated with heightened
geopolitical instability due to the conflicts in the Middle East
and Eastern Europe; the outbreak of viruses or widespread illness,
such as the COVID-19 pandemic, natural disasters or other highly
disruptive events and regulatory responses thereto; together with
each of the other factors set forth under the heading “Risk
Factors” in its filings with the United States Securities and
Exchange Commission (“SEC”). Any forward-looking statement made by
us in this press release speaks only as of the date on which it is
made, and while we believe that information forms a reasonable
basis for such statements, that information may be limited or
incomplete, and our statements should not be read to indicate that
we have conducted an exhaustive inquiry into, or review of, all
potentially available relevant information. Moreover, factors or
events that could cause the Company’s actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. The Company is not under any obligation (and
specifically disclaims any such obligation) to update or alter
these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with
GAAP. Non-GAAP financial measures used by the Company include
Adjusted net income, Adjusted net income per diluted share,
Adjusted EBITDA and Adjusted EBITDA margin. The Company has
included these non-GAAP financial measures in this press release as
they are key measures used by its management and its board of
directors to evaluate its operating performance and the
effectiveness of its business strategies, make budgeting decisions,
and evaluate compensation decisions. Adjusted net income, Adjusted
net income per diluted share, Adjusted EBITDA and Adjusted EBITDA
margin have limitations as analytical tools and you should not
consider them in isolation or as a substitute for analysis of the
Company’s results as reported under GAAP. There are limitations to
using non-GAAP financial measures, including those amounts
presented in accordance with the Company’s definitions of Adjusted
net income, Adjusted net income per diluted share, Adjusted EBITDA
and Adjusted EBITDA margin, as they may not be comparable to
similar measures disclosed by its competitors, because not all
companies and analysts calculate Adjusted net income, Adjusted net
income per diluted share, Adjusted EBITDA and Adjusted EBITDA
margin in the same manner. Because of these limitations, you should
consider Adjusted net income, Adjusted net income per diluted
share, Adjusted EBITDA and Adjusted EBITDA margin alongside other
financial performance measures, including, as applicable, net
income and the Company’s other GAAP results. The Company presents
Adjusted net income, Adjusted net income per diluted share,
Adjusted EBITDA and Adjusted EBITDA margin because we consider
these meaningful measures to share with investors because they best
allow comparison of the performance of one period with that of
another period. In addition, by presenting Adjusted net income,
Adjusted net income per diluted share, Adjusted EBITDA and Adjusted
EBITDA margin, we provide investors with management’s perspective
of the Company’s operating performance.
Adjusted net income is defined as net loss excluding the impact
of loss on extinguishment of debt, IPO-related stock-based
compensation expense, transaction costs, dividend-related bonus,
loss (gain) on foreign currency net, certain other adjustments, the
tax effect on the above adjustments, and the excess tax benefit
from stock option exercises. The Company defines Adjusted net
income per diluted share as Adjusted net income divided by adjusted
diluted weighted average common shares outstanding.
The Company defines Adjusted EBITDA as net loss excluding the
impact of interest expense, net, income tax benefit, depreciation
and amortization, loss on extinguishment of debt, stock-based
compensation expense, non-cash occupancy-related costs, lease
intangible asset expense, pre-opening expenses, store closing
expenses, transaction costs, dividend-related bonus, loss (gain) on
foreign currency, net and certain other adjustments. The Company
defines Adjusted EBITDA margin as Adjusted EBITDA divided by net
sales, expressed as a percentage.
Constant Currency
The Company reports certain operating results on a
constant-currency basis in order to facilitate period-to-period
comparisons of its results without regard to the impact of
fluctuating foreign currency exchange rates. The term foreign
currency exchange rates refers to the exchange rates used to
translate the Company's operating results for all countries where
the functional currency is not the U.S. Dollar into U.S. Dollars.
Because the Company is a global company, foreign currency exchange
rates used for translation may have a significant effect on its
reported results. In general, given the Company's significant
operations in Canada, the Company's financial results are affected
positively by a weakening of the U.S. Dollar against the Canadian
Dollar and are affected negatively by a strengthening of the U.S.
Dollar against the Canadian Dollar. References to operating results
on a constant-currency basis mean operating results without the
impact of foreign currency exchange rate fluctuations.
The Company believes disclosure of constant-currency net sales
is helpful to investors because it facilitates period-to-period
comparisons of its results by increasing the transparency of its
underlying performance by excluding the impact of fluctuating
foreign currency exchange rates. However, constant-currency results
are non-GAAP financial measures and are not meant to be considered
as an alternative or substitute for comparable measures prepared in
accordance with GAAP. Constant-currency results have no
standardized meaning prescribed by GAAP, are not prepared under any
comprehensive set of accounting rules or principles and should be
read in conjunction with the Company's consolidated financial
statements prepared in accordance with GAAP. Constant-currency
results have limitations in their usefulness to investors and may
be calculated differently from, and therefore may not be directly
comparable to, similarly titled measures used by other
companies.
Constant currency information compares results between periods
as if exchange rates had remained constant period-over-period.
During the thirteen weeks ended March 30, 2024, as compared to the
thirteen weeks ended April 1, 2023, the U.S. Dollar was weaker
relative to the Canadian Dollar but stronger relative to the
Australian Dollar which overall resulted in a favorable foreign
currency impact on our operating results. To present this
information, our current operating results in currencies other than
the U.S. dollar are converted into U.S. dollars using the average
exchange rates from the comparative prior period rather than the
actual average exchange rates in effect.
SAVERS VALUE VILLAGE,
INC.
Condensed Consolidated Balance
Sheets
(All amounts in thousands, except
per share amounts, unaudited)
March 30, 2024
December 30, 2023
Current assets:
Cash and cash equivalents
$
102,183
$
179,955
Trade receivables, net
12,557
11,767
Inventories
35,325
32,820
Prepaid expenses and other current
assets
31,911
25,691
Derivative assets – current
36,133
7,691
Total current assets
218,109
257,924
Property and equipment, net
236,068
229,405
Right-of-use lease assets
515,224
499,375
Goodwill
681,520
687,368
Intangible assets, net
163,977
166,681
Other assets
3,057
3,133
Derivative assets – non-current
—
23,519
Total assets
$
1,817,955
$
1,867,405
Current liabilities:
Accounts payable and accrued
liabilities
$
93,447
$
92,550
Accrued payroll and related taxes
44,001
65,096
Lease liabilities – current
77,829
79,306
Current portion of long-term debt and
short-term borrowings
6,000
4,500
Total current liabilities
221,277
241,452
Long-term debt, net
735,863
784,593
Lease liabilities – non-current
438,994
419,407
Deferred tax liabilities, net
6,954
27,909
Other liabilities
19,910
17,989
Total liabilities
1,422,998
1,491,350
Stockholders’ equity:
Preferred stock
—
—
Common stock
—
—
Additional paid-in capital
615,196
593,109
Accumulated deficit
(248,008
)
(247,541
)
Accumulated other comprehensive income
27,769
30,487
Total stockholders’ equity
394,957
376,055
Total liabilities and stockholders’
equity
$
1,817,955
$
1,867,405
SAVERS VALUE VILLAGE,
INC.
Condensed Consolidated Statements
of Net Loss
(All amounts in thousands, except
per share amounts, unaudited)
Thirteen Weeks Ended
March 30, 2024
April 1, 2023
Amount
% of Sales
Amount
% of Sales
Net sales
$
354,172
100.0
%
$
345,684
100.0
%
Operating expenses:
Cost of merchandise sold, exclusive of
depreciation and amortization
158,164
44.7
145,753
42.1
Salaries, wages and benefits
83,697
23.6
92,632
26.8
Selling, general and administrative
77,743
22.0
77,045
22.3
Depreciation and amortization
18,301
5.1
14,484
4.2
Total operating expenses
337,905
95.4
329,914
95.4
Operating income
16,267
4.6
15,770
4.6
Other (expense) income
Interest expense, net
(16,076
)
(4.5
)
(24,470
)
(7.1
)
(Loss) gain on foreign currency, net
(956
)
(0.3
)
1,295
0.4
Other expense, net
(106
)
—
(216
)
(0.1
)
Loss on extinguishment of debt
(4,088
)
(1.2
)
(6,011
)
(1.7
)
Other expense, net
(21,226
)
(6.0
)
(29,402
)
(8.5
)
Loss before income taxes
(4,959
)
(1.4
)
(13,632
)
(3.9
)
Income tax benefit
(4,492
)
(1.3
)
(3,437
)
(1.0
)
Net loss
$
(467
)
(0.1
)%
$
(10,195
)
(2.9
)%
Net loss per share, basic
$
(0.00
)
$
(0.07
)
Net loss per share, diluted
$
(0.00
)
$
(0.07
)
Basic weighted average shares
outstanding
161,247
141,695
Diluted weighted average shares
outstanding
161,247
141,695
SAVERS VALUE VILLAGE,
INC.
Condensed Consolidated Statements
of Cash Flows
(All amounts in thousands,
unaudited)
Thirteen Weeks Ended
March 30, 2024
April 1, 2023
Cash flows from operating
activities:
Net loss
$
(467
)
$
(10,195
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation expense
19,129
917
Amortization of debt issuance costs and
debt discount
1,401
1,466
Depreciation and amortization
18,301
14,484
Operating lease expense
31,450
29,392
Deferred income taxes, net
(20,811
)
(8,611
)
Loss on extinguishment of debt
4,088
6,011
Other items
(1,991
)
(3,905
)
Changes in operating assets and
liabilities:
Trade receivables
(683
)
(1,043
)
Inventories
(2,590
)
(3,328
)
Prepaid expenses and other current
assets
(6,291
)
(1,014
)
Accounts payable and accrued
liabilities
1,234
2,351
Accrued payroll and related taxes
(20,465
)
(14,292
)
Operating lease liabilities
(29,283
)
(27,830
)
Other liabilities
1,178
763
Net cash used in operating activities
(5,800
)
(14,834
)
Cash flows from investing
activities:
Purchases of property and equipment
(22,494
)
(20,799
)
Settlement of derivative instruments,
net
(59
)
(51
)
Net cash used in investing activities
(22,553
)
(20,850
)
Cash flows from financing
activities:
Proceeds from issuance of long-term debt,
net
—
529,247
Principal payments on long-term debt
(51,000
)
(235,463
)
Payment of debt issuance costs
(111
)
(4,359
)
Prepayment premium on extinguishment of
debt
(1,485
)
—
Advances on revolving line of credit
—
35,000
Repayments of revolving line of credit
—
(47,000
)
Proceeds from stock option exercises
2,958
—
Dividends paid
—
(262,235
)
Repurchase of shares and shares withheld
to cover taxes
—
(345
)
Settlement of derivative instrument,
net
2,362
1,785
Principal payments on finance lease
liabilities
(346
)
—
Net cash (used in) provided by financing
activities
(47,622
)
16,630
Effect of exchange rate changes on cash
and cash equivalents
(1,797
)
(124
)
Net change in cash and cash
equivalents
(77,772
)
(19,178
)
Cash and cash equivalents at beginning
of period
179,955
112,132
Cash and cash equivalents at end of
period
$
102,183
$
92,954
SAVERS VALUE VILLAGE,
INC.
Supplemental Detail on Net Loss
Per Common Share Calculation
(Unaudited)
The following unaudited table sets forth the computation of net
loss per basic and diluted share as shown on the face of the
accompanying condensed consolidated statements of net loss:
Thirteen Weeks Ended
(in thousands, except per share data)
March 30, 2024
April 1, 2023
Numerator
Net loss
$
(467
)
$
(10,195
)
Denominator
Basic weighted average common shares
outstanding
161,247
141,695
Dilutive effect of employee stock options
and awards
—
—
Diluted weighted average common shares
outstanding
161,247
141,695
Net loss per share
Basic
$
(0.00
)
$
(0.07
)
Diluted
$
(0.00
)
$
(0.07
)
SAVERS VALUE VILLAGE,
INC.
Supplemental Detail on Net Sales
by Segment
(Unaudited)
The following unaudited table presents net sales by segment for
the periods presented:
Thirteen Weeks Ended
(dollars in thousands)
March 30, 2024
April 1, 2023
$ Change
% Change
U.S. Retail
$
192,580
$
184,021
$
8,559
4.7
%
Canada Retail
134,119
133,273
846
0.6
Other
27,473
28,390
(917
)
(3.2
)
Total net sales
$
354,172
$
345,684
$
8,488
2.5
%
SAVERS VALUE VILLAGE,
INC.
Supplemental Information
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
The following information relates to non-GAAP financial measures
and should be read in conjunction with the investor call held on
May 9, 2024, discussing the Company’s financial condition and
results of operations for the first quarter.
The following unaudited table presents a reconciliation of net
loss and net loss per diluted share on a GAAP basis to Adjusted net
income and Adjusted net income per diluted share for the periods
presented:
Thirteen Weeks Ended
(in thousands, except per share
amounts)
March 30, 2024
April 1, 2023
Net loss:
Net loss
$
(467
)
$
(10,195
)
Loss on extinguishment of debt(1)(2)
4,088
6,011
IPO-related stock-based compensation
expense(1)(3)
17,993
—
Transaction costs(1)(4)
2,257
940
Dividend-related bonus(1)(5)
—
24,097
Loss (gain) on foreign currency,
net(1)
956
(1,295
)
Other adjustments(1)(6)
2
(634
)
Tax effect on adjustments(7)
(7,938
)
(8,444
)
Excess tax benefit from stock option
exercises
(3,028
)
—
Adjusted net income
$
13,863
$
10,480
Net loss per share -
diluted(8):
Net loss per diluted share
$
(0.00
)
$
(0.07
)
Loss on extinguishment of debt(1)(2)
0.02
0.04
IPO-related stock-based compensation
expense(1)(3)
0.11
—
Transaction costs(1)(4)
0.01
0.01
Dividend-related bonus(1)(5)
—
0.16
Loss (gain) on foreign currency,
net(1)
0.01
(0.01
)
Other adjustments(1)(6)
—
—
Tax effect on adjustments(7)
(0.05
)
(0.06
)
Excess tax benefit from stock option
exercises
(0.02
)
—
Adjusted net income per diluted share
$
0.08
$
0.07
(1)
Presented pre-tax.
(2)
Removes the effects of the loss on extinguishment of debt in
relation to the repricing of outstanding borrowings under the Term
Loan Facility on January 30, 2024, the partial redemption of our
Senior Secured Notes on March 4, 2024, and the partial repayment of
outstanding borrowings under the Term Loan Facility on February 6,
2023.
(3)
Reflects stock-based compensation expense for performance-based
options triggered by the completion of our IPO and expense related
to restricted stock units issued in connection with the Company’s
IPO.
(4)
Transaction costs are comprised of non-capitalizable expenses
related to offering costs, debt transactions and acquisitions.
(5)
Represents dividend-related bonus and related payroll taxes paid in
conjunction with our February 2023 dividend.
(6)
The thirteen weeks ended April 1, 2023 includes legal settlement
proceeds of $0.5 million.
(7)
Tax effect on adjustments is calculated based on the forecasted
effective tax rate for the fiscal year.
(8)
For the thirteen weeks ended March 30, 2024 and April 1, 2023,
Adjusted net income per diluted share includes 6,782 and 4,644 of
potential shares of common stock, respectively, relating to awards
of stock options and restricted stock units that were excluded from
the calculation of GAAP diluted net loss per share as their
inclusion would have had an antidilutive effect.
A reconciliation of the Company’s fiscal 2024 outlook for net
income on a GAAP basis to Adjusted net income is presented in the
table below:
Fifty-Two Weeks Ended
(in millions)
December 28, 2024
Low End
High End
Net
income:
Net income
$
85
$
92
Loss on extinguishment of debt(1)(2)
4
4
IPO-related stock-based compensation
expense(1)(3)
56
56
Transaction costs(1)(4)
2
2
Loss on foreign currency, net(1)
2
2
Tax effect on adjustments
(20
)
(20
)
Excess tax benefit from stock option
exercises
(3
)
(3
)
Adjusted net income
$
126
$
133
(1)
Presented pre-tax.
(2)
Removes the effects of the loss on extinguishment of debt in
relation to the repricing of outstanding borrowings under the Term
Loan Facility on January 30, 2024 and the partial redemption of our
Senior Secured Notes on March 4, 2024,
(3)
Reflects stock-based compensation expense for performance-based
options triggered by the completion of our IPO and expense related
to restricted stock units issued in connection with the Company’s
IPO.
(4)
Transaction costs are comprised of non-capitalizable expenses
related to offering costs, debt transactions and acquisitions.
The following unaudited table presents a reconciliation of GAAP
net loss to Adjusted EBITDA for the periods presented:
Thirteen Weeks Ended
March 30, 2024
April 1, 2023
(in thousands)
Net loss
$
(467
)
$
(10,195
)
Interest expense, net
16,076
24,470
Income tax benefit
(4,492
)
(3,437
)
Depreciation and amortization
18,301
14,484
Loss on extinguishment of debt(1)
4,088
6,011
Stock-based compensation expense(2)
19,129
917
Non-cash occupancy-related costs(3)
1,993
697
Lease intangible asset expense(4)
877
1,126
Pre-opening expenses(5)
1,502
1,378
Store closing expenses(6)
53
448
Transaction costs(7)
2,257
940
Dividend-related bonus(8)
—
24,097
Loss (gain) on foreign currency, net
956
(1,295
)
Other adjustments(9)
2
(634
)
Adjusted EBITDA
$
60,275
$
59,007
Net loss margin
(0.1
)%
(2.9
)%
Adjusted EBITDA margin
17.0
%
17.1
%
(1)
Removes the effects of the loss on extinguishment of debt in
relation to the repricing of outstanding borrowings under the Term
Loan Facility on January 30, 2024, the partial redemption of our
Senior Secured Notes on March 4, 2024, and the partial repayment of
outstanding borrowings under the Term Loan Facility on February 6,
2023.
(2)
Represents non-cash stock-based compensation expense related to
stock options and restricted stock units granted to certain of our
employees and directors.
(3)
Represents the difference between cash and straight-line lease
expense.
(4)
Represents lease expense associated with acquired lease
intangibles. Prior to the adoption of Topic 842, this expense was
included within depreciation and amortization.
(5)
Pre-opening expenses include expenses incurred in the preparation
and opening of new stores and processing locations, such as
payroll, training, travel, occupancy and supplies.
(6)
Costs associated with the closing of certain retail locations,
including lease termination costs, amounts paid to third parties
for rent reduction negotiations, and fees paid to landlords for
store closings.
(7)
Transaction costs are comprised of non-capitalizable expenses
related to offering costs, debt transactions and acquisitions.
(8)
Represents dividend-related bonus and related taxes paid in
conjunction with our February 2023 dividend.
(9)
The thirteen weeks ended April 1, 2023 includes legal settlement
proceeds of $0.5 million.
Constant-currency
The Company calculates constant-currency net sales by
translating current-period net sales using the average exchange
rates from the comparative prior period rather than the actual
average exchange rates in effect. The Company’s constant-currency
net sales is not a financial measure prepared in accordance with
GAAP.
The following unaudited table presents a reconciliation of GAAP
net sales to constant-currency net sales for the periods
presented:
Thirteen Weeks Ended
(dollars in thousands)
March 30, 2024
April 1, 2023
$ Change
% Change
Net sales
$
354,172
$
345,684
$
8,488
2.5%
Impact of foreign currency
(20
)
n/a
(20
)
n/m
Constant-currency net sales
$
354,152
$
345,684
$
8,468
2.4%
n/a - not applicable
n/m - not meaningful
Supplemental Metrics
We use the supplemental metrics below to evaluate the
performance of our business, identify trends, formulate financial
projections and make strategic decisions. The Company believes that
these metrics provide useful information to investors and others in
understanding and evaluating its results of operations in the same
manner as its management team.
The following unaudited table summarizes certain supplemental
metrics for the periods presented:
Thirteen Weeks Ended
March 30, 2024
April 1, 2023
Comparable Store Sales Growth
(1)
United States
2.3
%
5.6
%
Canada
(2.6
)%
9.0
%
Total (2)
0.3
%
7.2
%
Number of Stores
United States
155
152
Canada
159
153
Total (2)
326
317
Processed Supply Volume (lbs
mm)
238
240
Sales Yield (3)
$1.41
$1.39
(1)
Comparable store sales growth is the percentage change in
comparable store sales over the comparable period in the prior
fiscal year. We define comparable store sales to be sales by stores
that have been in operation for all or a portion of two consecutive
fiscal years, or, in other words, stores that are starting their
third fiscal year of operation. In fiscal year 2023, comparable
store sales growth excludes stores acquired in the 2nd Ave.
Acquisition because those stores were not yet fully integrated
during the prior year.
(2)
Total comparable store sales growth and total number of stores
include our Australia retail locations, in addition to retail
stores in the U.S. and Canada.
(3)
We define sales yield as retail sales generated per pound processed
on a currency neutral and comparable store basis.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509624482/en/
Investor Contact: John Rouleau/Lyn Walther ICR, Inc.
Investors@savers.com
Media Contact: Edelman Smithfield | 713.299.4115 |
Savers@edelman.com Savers | 206.228.2261 | sgaugl@savers.com
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