First Quarter Fiscal 2023 Results of Operations
- As of the end of the first quarter fiscal 2023, the Company operated 487 stores compared to 489 stores at the end of the first quarter fiscal 2022.
- Comparable store sales decreased 10.4% in the first quarter of fiscal 2023 versus the first quarter of fiscal 2022, with store inventory ending lower by 6.4% compared to the first quarter of fiscal 2022.
- Net sales were
$157.1 million in the first quarter of fiscal 2023 as compared to$176.9 million for the first quarter of fiscal 2022. - Gross margin was
$34.6 million and gross margin rate was 22.0% for the first quarter of fiscal 2023. Gross margin was$51.0 million and gross margin rate was 28.8% for the first quarter of fiscal 2022. This year over year decline in gross margin was primarily due to lower sales as well as increased recognized costs related to supply chain and transportation expenses. - SG&A was
$60.5 million in the first quarter of fiscal 2023. As a percentage of net sales, SG&A was 38.5% for the first quarter of fiscal 2023. In the first quarter of fiscal 2022, SG&A was$60.3 million , and as a percentage of sales was 34.1%. - Operating loss for the first quarter of fiscal 2023 was
$25.9 million compared to an operating loss of$11.7 million in the first quarter of fiscal 2022. - The Company reported a net loss of
$28.2 million , or ($0.29 ) per share, for the first quarter of fiscal 2023. Net loss for the first quarter of fiscal 2022 was$14.6 million , or ($0.17 ) per share. - EBITDA, a non-GAAP measure, was negative
$22.7 million for the first quarter of fiscal 2023 compared to negative$9.5 million for the first quarter of 2022. Adjusted EBITDA, a non-GAAP measure, was negative$20.0 million for the first quarter of fiscal 2023. Adjusted EBITDA was negative$5.7 million for the first quarter of fiscal 2022. A reconciliation of GAAP and non-GAAP measures is provided below.
The Company ended the first quarter of fiscal 2023 with
Outlook
On
About Tuesday Morning
Cautionary Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements, which are based on management’s current expectations, estimates and projections. Forward-looking statements include statements regarding management’s plans and strategies, execution of management’s plans and strategies and future financial performance. The forward-looking statements in this press release are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements.
Reference is hereby made to the Company’s filings with the
The forward-looking statements made in this press release relate only to events as of the date on which the statements were made. Except as may be required by law, the Company disclaims obligations to update any forward-looking statements to reflect events and circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events. Investors are cautioned not to place undue reliance on any forward-looking statements.
INVESTOR RELATIONS:
ICR
203-682-8200
TuesdayMorningIR@icrinc.com
MEDIA:
TuesdayMorning@edelman.com
Condensed Consolidated Balance Sheet | |||||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 6,912 | $ | 7,816 | |||
Inventories | 132,464 | 148,462 | |||||
Prepaid expenses and other | 8,492 | 7,505 | |||||
Current assets | 147,868 | 163,783 | |||||
Property and equipment, net | 26,423 | 28,442 | |||||
Operating lease right of use assets | 156,705 | 156,945 | |||||
Other | 9,839 | 5,006 | |||||
Total Assets | $ | 340,835 | $ | 354,176 | |||
Current portion of long term debt | $ | 313 | $ | 250 | |||
Accounts payable | 52,071 | 40,797 | |||||
Accrued liabilities and other | 35,600 | 33,491 | |||||
Operating lease liabilities | 46,390 | 52,258 | |||||
Total current liabilities | 134,374 | 126,796 | |||||
Operating lease liabilities - non-current | 120,565 | 115,926 | |||||
Borrowings under revolving credit facility | 31,355 | 62,191 | |||||
Long term debt | 37,443 | 28,730 | |||||
Derivative liability | 9,768 | — | |||||
Other non-current liabilities | 1,497 | 1,546 | |||||
Total Liabilities | 335,002 | 335,189 | |||||
Stockholders' Equity | 5,833 | 18,987 | |||||
Total Liabilities and Equity | $ | 340,835 | $ | 354,176 | |||
Condensed Consolidated Statement of Operations | ||||||||
(In thousands, except per share data) | ||||||||
For the Three Months Ended | ||||||||
2022 | 2021 | |||||||
Net sales | $ | 157,105 | $ | 176,872 | ||||
Cost of sales | 122,469 | 125,858 | ||||||
Gross margin | 34,636 | 51,014 | ||||||
Selling, general and administrative expenses | 60,523 | 60,277 | ||||||
Restructuring, impairment, and abandonment charges | - | 2,430 | ||||||
Operating loss before interest, reorganization and other income/(expense) | (25,887 | ) | (11,693 | ) | ||||
Other income/(expense): | ||||||||
Interest expense | (2,027 | ) | (1,716 | ) | ||||
Reorganization items, net | - | (1,292 | ) | |||||
Gain on derivative | 8,780 | - | ||||||
Loss on debt extinguishment | (8,382 | ) | - | |||||
Other income, net | (498 | ) | 49 | |||||
Loss before income taxes | (28,014 | ) | (14,652 | ) | ||||
Income tax expense/(benefit) | 149 | (49 | ) | |||||
Net loss | $ | (28,163 | ) | $ | (14,603 | ) | ||
Earnings Per Share | ||||||||
Net loss per common share | ||||||||
Basic | $ | (0.29 | ) | $ | (0.17 | ) | ||
Diluted | $ | (0.29 | ) | $ | (0.17 | ) | ||
Weighted average number of common shares: | ||||||||
Basic | 96,645 | 84,310 | ||||||
Diluted | 96,645 | 84,310 | ||||||
Condensed Consolidated Statement of Cash Flows | |||||||||
(In thousands) | |||||||||
For the Year Ended | |||||||||
2022 | 2021 | ||||||||
Cash flows from operating activities | |||||||||
Net earnings/(loss) | $ | (28,163 | ) | $ | (14,603 | ) | |||
Adjustments to reconcile net earnings/(loss) to net cash provided by/(used) in operating activities: | |||||||||
Depreciation and amortization | 3,315 | 3,397 | |||||||
Loss on impairment and abandonment of assets | — | 2,089 | |||||||
Amortization of financing costs and interest expense | 1,157 | 1,267 | |||||||
(Gain)/loss on disposal of assets | (15 | ) | 68 | ||||||
Loss on extinguishment of debt | 8,382 | — | |||||||
Gain on derivatives | (8,780 | ) | — | ||||||
Share-based compensation | 1,544 | 1,173 | |||||||
Deferred income taxes | — | (118 | ) | ||||||
Construction allowances from landlords | 245 | 426 | |||||||
Change in operating assets and liabilities | 24,664 | (26,915 | ) | ||||||
Net cash provided by/(used in) operating activities | 2,349 | (33,216 | ) | ||||||
Cash flows from investing activities | |||||||||
Capital expenditures | (1,315 | ) | (1,761 | ) | |||||
Net cash used in investing activities | (1,315 | ) | (1,761 | ) | |||||
Cash flows from financing activities | |||||||||
Proceeds from borrowings under revolving credit facility | 192,792 | 209,314 | |||||||
Repayments of borrowings under revolving credit facility | (218,628 | ) | (198,924 | ) | |||||
Issuance of Convertible Notes | 35,000 | — | |||||||
Payment of FILO A and B facilities | (7,500 | ) | — | ||||||
Proceeds from FILO B | 5,000 | — | |||||||
Proceeds from the exercise of employee stock options | — | 467 | |||||||
Tax payments related to vested stock awards | (35 | ) | (12 | ) | |||||
Payments on finance leases | — | (36 | ) | ||||||
Payments of financing fees | (8,567 | ) | — | ||||||
Net cash provided by/(used in) financing activities | (1,938 | ) | 10,809 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (904 | ) | (24,168 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 7,816 | 28,855 | |||||||
Cash, cash equivalents and restricted cash at end of period | $ | 6,912 | $ | 4,687 | |||||
Non-GAAP Financial Measures
Unaudited Non-GAAP Financial Measures We define EBITDA as net earnings or net loss before interest, income taxes, depreciation, and amortization. Adjusted EBITDA reflects further adjustments to EBITDA to eliminate the impact of certain items, including certain non-cash items and other items that we believe are not representative of our core operating performance. These measures are not presentations made in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered as alternatives to net earnings or loss as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not presented as a measure of liquidity. EBITDA and Adjusted EBITDA should not be considered in isolation, or as substitutes for analysis of our results as reported under GAAP and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by such adjustments. We believe it is useful for investors to see these EBITDA and Adjusted EBITDA measures that management uses to evaluate our operating performance. These non-GAAP financial measures are included to supplement our financial information presented in accordance with GAAP and because we use these measures to monitor and evaluate the performance of our business as a supplement to GAAP measures and we believe the presentation of these non-GAAP measures enhances investors’ ability to analyze trends in our business and evaluate our performance. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. The non-GAAP measures presented may not be comparable to similarly titled measures used by other companies.
Adjusted EBITDA | ||||||||||
(In thousands) | ||||||||||
For the Three Months Ended, | ||||||||||
2022 | 2021 | |||||||||
Net loss | $ | (28,163 | ) | $ | (14,603 | ) | ||||
Depreciation and amortization | 3,315 | 3,397 | ||||||||
Interest expense, net | 2,027 | 1,716 | ||||||||
Income tax expense (benefit) | 149 | (49 | ) | |||||||
EBITDA (non-GAAP) | $ | (22,672 | ) | $ | (9,539 | ) | ||||
Share-based compensation expense (1) | $ | 1,565 | $ | 1,173 | ||||||
Restructuring, impairment and abandonment charges (2) | — | 2,430 | ||||||||
Re-organization items, net (3) | — | 1,292 | ||||||||
Gain on derivative(4) | (8,780 | ) | — | |||||||
Loss on extinguishment of debt (5) | 8,382 | — | ||||||||
Other (6) | 1,548 | (1,017 | ) | |||||||
Adjusted EBITDA (non-GAAP) | $ | (19,957 | ) | $ | (5,661 | ) | ||||
(1) Adjustment includes charges related to share-based compensation programs, which vary from period to period depending on volume, timing and vesting of awards. We adjust for these charges to facilitate comparisons from period to period. | ||||||||||
(2) For the three months ended | ||||||||||
(3) For the three months ended | ||||||||||
(4) For the three months ended | ||||||||||
(5) For the three months ended | ||||||||||
(6) For the three months ended | ||||||||||
Source:
2022 GlobeNewswire, Inc., source