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LESL Leslie's

Filed: 5 May 21, 4:10pm

Exhibit 99.1

 

 

Leslie’s, Inc. Announces

Second Quarter Fiscal 2021 Financial Results;
Raises Full Year Outlook

 

 

Record second quarter sales of $192.4 million, an increase of 52.3% from prior year quarter; comparable sales growth of 51.3% on a reported basis and 35.5% on a shifted basis as a result of the 53rd week in Fiscal 2020

 

GAAP net loss of $(6.5) million compared to $(29.8) million in the prior year quarter; Adjusted net loss of $(2.8) million compared to $(28.8) million in the prior year quarter, an improvement of $26.0 million

 

Adjusted EBITDA of $9.5 million compared to $(8.1) million in the prior year quarter, an improvement of $17.6 million

 

Raises Fiscal 2021 sales outlook by $75 million, Adjusted EBITDA by $25 million, and Adjusted net income per share by $0.10

 

PHOENIX, May 5, 2021 – 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 second quarter of Fiscal 2021.

 

Mike Egeck, Chief Executive Officer, commented on the results saying “We are very pleased with our second quarter performance which exceeded our expectations and produced record results for the quarter on both the top and bottom line. Broad-based industry tailwinds combined with our integrated and expanding physical and digital capabilities, as well as strong execution of our growth initiatives were the key drivers of this performance. In addition, the unique dynamics of severe weather in the south central U.S. and chlorine retail inflation were positive factors in the quarter.”

 

“As we look to the second half of our fiscal year, our growth initiatives are continuing to gain traction, our teams continue to execute at a high level and we are well prepared for what we believe will be a strong 2021 pool season. Our results to date combined with our expectations for the second half are driving another increase in our full year outlook,” added Mr. Egeck.

 

For the Thirteen Weeks Ended April 3, 2021 Highlights

Sales increased 52.3%, or $66.0 million, to $192.4 million from $126.4 million in the second quarter of 2020. Comparable sales on an unshifted basis increased 51.3% for the second quarter of 2021 compared to the second quarter of 2020. On a shifted basis, using a realigned period in 2020 for comparability given the 53rd week in Fiscal 2020, comparable sales increased 35.5%.

Gross profit increased 79.6% to $71.7 million from $39.9 million in the second quarter of 2020 and gross margin was 37.2% compared to 31.6% in the second quarter of 2020, an increase of 567 basis points.

1

 


SG&A increased to $70.4 million from $56.0 million in the second quarter of 2020, or an increase of $14.4 million, driven by the increase in overall sales and continued investments to support Company growth.

Operating income was $1.3 million compared to an operating loss of $(16.1) million in the second quarter of 2020.

Net loss improved to $(6.5) million compared to $(29.8) million in the second quarter of 2020. Adjusted net loss improved by $26.0 million to $(2.8) million from $(28.8) million in the second quarter of 2020.

Net loss per common share improved to $(0.03) compared to $(0.19) in the second quarter of 2020. Adjusted loss per common share improved by $0.17 to $(0.01) from $(0.18) in the second quarter of 2020.

Adjusted EBITDA improved by $17.6 million to $9.5 million from $(8.1) million in the second quarter of 2020.

 

For the Twenty-Six Weeks Ended April 3, 2021 Highlights

Sales increased 35.3%, or $88.0 million, to $337.4 million from $249.4 million for the same period of Fiscal 2020. Comparable sales on an unshifted basis increased 33.7% for Fiscal 2021 compared to the same period of Fiscal 2020. On a shifted basis, using a realigned period in 2020 for comparability given the 53rd week in Fiscal 2020, comparable sales increased 31.1%.

Gross profit increased 52.4% to $123.4 million from $81.0 million for the same period of Fiscal 2020 and gross margin was 36.6% compared to 32.5% in the same period of Fiscal 2020, an increase of 409 basis points.

SG&A increased to $147.9 million from $115.8 million for the same period of Fiscal 2020, or an increase of $32.1 million.

Operating loss was $(24.5) million compared to $(34.8) million for the same period of Fiscal 2020.

Net loss improved to $(36.7) million compared to $(56.0) million for the same period of Fiscal 2020. Adjusted net loss improved by $39.7 million to $(13.4) million from $(53.1) million for the same period of Fiscal 2020.

Net loss per common share improved to $(0.20) compared to $(0.36) in the same period of Fiscal 2020. Adjusted loss per common share improved by $0.27 to $(0.07) from $(0.34) for the same period of Fiscal 2020.

Adjusted EBITDA improved by $26.4 million to $9.3 million from $(17.1) million for the same period of Fiscal 2020.

 

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents totaled $90.3 million and there were no borrowings under our revolver for Fiscal 2021 compared to cash and cash equivalents of $11.9 million and borrowings of $50.0 million under our revolver for the same period of Fiscal 2020.

Inventory totaled $277.9 million at the end of Fiscal 2021 compared to $244.7 million at end of the same period of Fiscal 2020.

Net cash used in operating activities totaled $111.5 million for Fiscal 2021 compared to $106.1 million for the same period of Fiscal 2020.

Capital expenditures totaled $9.5 million for Fiscal 2021 compared to $12.5 million for the same period of Fiscal 2020.

 


2

 


 

Fiscal 2021 Outlook

The Company raised guidance for the full year Fiscal 2021, a 52-week year. Fiscal 2020 included a 53rd week, which added approximately $18.0 million in sales, $1.5 million in net income, and $3.0 million in Adjusted EBITDA.

 

Current Outlook

Prior Outlook

Sales

$1,250 to $1,270 million

$1,175 to $1,195 million

GAAP net income

$95 to $105 million

$82 to $92 million

Adjusted net income

$125 to $135 million

$106 to $116 million

Adjusted EBITDA

$225 to $235 million

$202 to $208 million

Adjusted net income per share

$0.65 to $0.70

$0.55 to $0.60

Diluted share count

193 million

193 million

 

Conference Call Details

A conference call to discuss its financial results for the second quarter of Fiscal 2021 is scheduled for today, May 5, 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 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 940 physical locations and multiple digital platforms. The company employs more than 5,000 associates, pool and spa care experts, and certified technicians who 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

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses certain non-GAAP financial measures, including comparable sales growth and adjusted EBITDA, adjusted net income, and adjusted net income 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 should not be considered in isolation or as substitutes for the Company’s results as reported under GAAP. In addition, these non-GAAP financial 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

3

 


and third-party marketplaces. Comparable sales 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, amortization, loss (gain) on disposition of assets, management fees, equity-based compensation expense, mark-to-market on interest rate cap, and special 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 added back to calculate 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 Net Income per Share

Adjusted net income and adjusted net income per share are additional key measures used by management and our board of directors to assess our financial performance. Adjusted net income and adjusted net income 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 loss (gain) on disposition of assets, management fees, equity-based compensation expense, mark-to-market on interest rate cap, and special items. Adjusted net income per share is defined as adjusted net income divided by the 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;

4

 


 

 

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; and

 

other risks and uncertainties, including those listed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 3, 2020, Quarterly Report on Form 10-Q for the quarter ended January 2, 2021, and subsequent 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. 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.

 

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.

Contact

 

Investors

Farah Soi/Caitlin Churchill

ICR

investorrelations@lesl.com

 

Media

Megan Gaffney

SHIFT Communications

media@lesl.com

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Condensed Consolidated Statements of Operations

(amounts in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

April 3, 2021

 

 

March 28, 2020

 

 

April 3, 2021

 

 

March 28, 2020

Sales

 

$

192,441

 

 

$

126,377

 

 

$

337,447

 

 

$

249,355

Cost of merchandise and services sold

 

 

120,758

 

 

 

86,464

 

 

 

214,049

 

 

 

168,364

Gross profit

 

 

71,683

 

 

 

39,913

 

 

 

123,398

 

 

 

80,991

Selling, general and administrative expenses

 

 

70,374

 

 

 

56,048

 

 

 

147,863

 

 

 

115,769

Operating income (loss)

 

 

1,309

 

 

 

(16,135

)

 

 

(24,465

)

 

 

(34,778)

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

8,126

 

 

 

22,709

 

 

 

19,642

 

 

 

45,126

Loss on debt extinguishment

 

 

1,888

 

 

 

 

 

 

9,169

 

 

 

Other expense, net

 

 

1,057

 

 

 

187

 

 

 

1,057

 

 

 

324

Total other expense

 

 

11,071

 

 

 

22,896

 

 

 

29,868

 

 

 

45,450

Loss before taxes

 

 

(9,762

)

 

 

(39,031

)

 

 

(54,333

)

 

 

(80,228)

Income tax benefit

 

 

(3,310

)

 

 

(9,205

)

 

 

(17,624

)

 

 

(24,215)

Net loss

 

$

(6,452

)

 

$

(29,826

)

 

$

(36,709

)

 

$

(56,013)

Net loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.03

)

 

$

(0.19

)

 

$

(0.20

)

 

$

(0.36)

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

186,810

 

 

 

156,500

 

 

 

181,900

 

 

 

156,500

 

 

Other Financial Data (1)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

April 3, 2021

 

 

March 28, 2020

 

 

April 3, 2021

 

 

March 28, 2020

Adjusted EBITDA

 

$

9,528

 

 

$

(8,081)

 

 

$

9,285

 

 

$

(17,085)

Adjusted net loss

 

$

(2,781)

 

 

$

(28,756)

 

 

$

(13,400)

 

 

$

(53,070)

Adjusted net loss per share

 

$

(0.01)

 

 

$

(0.18)

 

 

$

(0.07)

 

 

$

(0.34)

 

(1)

See section titled “GAAP to Non-GAAP Reconciliation”.

 

 

 


6

 


 

Condensed Consolidated Balance Sheets

(amounts in thousands, except share and per share amounts)

 

 

 

 

April 3, 2021

 

 

October 3, 2020

 

 

March 28, 2020

Assets

 

(Unaudited)

 

 

 

(Audited)

 

 

(Unaudited)

Current assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

90,328

 

 

$

157,072

 

 

$

11,934

Accounts and other receivables, net

 

 

41,733

 

 

 

31,481

 

 

 

30,924

Inventories

 

 

277,860

 

 

 

148,966

 

 

 

244,662

Prepaid expenses and other current assets

 

 

58,331

 

 

 

34,614

 

 

 

41,609

Total current assets

 

 

468,252

 

 

 

372,133

 

 

 

329,129

Property and equipment, net

 

 

63,632

 

 

 

66,391

 

 

 

72,169

Operating lease right-of-use assets

 

 

181,581

 

 

 

177,655

 

 

 

200,746

Goodwill and other intangibles, net

 

 

127,851

 

 

 

121,186

 

 

 

122,213

Deferred tax assets

 

 

15,293

 

 

 

6,583

 

 

 

Other assets

 

 

2,302

 

 

 

2,490

 

 

 

1,270

Total assets

 

$

858,911

 

 

$

746,438

 

 

$

725,527

Liabilities and stockholders’ deficit

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

181,524

 

 

$

92,372

 

 

$

143,197

Accrued expenses

 

 

82,338

 

 

 

101,167

 

 

 

67,091

Operating lease liabilities

 

 

55,395

 

 

 

54,459

 

 

 

59,721

Income taxes payable

 

 

 

 

 

1,857

 

 

 

Current portion of long-term debt

 

 

8,100

 

 

 

8,341

 

 

 

8,341

Total current liabilities

 

 

327,357

 

 

 

258,196

 

 

 

278,350

Deferred tax liabilities

 

 

 

 

 

 

 

 

4,273

Operating lease liabilities, noncurrent

 

 

130,496

 

 

 

130,234

 

 

 

151,059

Long-term debt, net

 

 

789,339

 

 

 

1,179,550

 

 

 

1,234,003

Other long-term liabilities

 

 

2,729

 

 

 

5,457

 

 

 

5

Total liabilities

 

 

1,249,921

 

 

 

1,573,437

 

 

 

1,667,690

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 1,000,000,000 shares authorized and 186,884,621 issued and outstanding as of April 3, 2021 and 156,500,000 shares authorized, issued and outstanding as of October 3, 2020 and March 28, 2020, respectively.

 

 

187

 

 

 

157

 

 

 

157

Additional paid in capital (deficit)

 

 

194,605

 

 

 

(278,063

)

 

 

(278,653)

Retained deficit

 

 

(585,802

)

 

 

(549,093

)

 

 

(663,667)

Total stockholders’ deficit

 

 

(391,010

)

 

 

(826,999

)

 

 

(942,163)

Total liabilities and stockholders’ deficit

 

$

858,911

 

 

$

746,438

 

 

$

725,527

 

 


7

 


 

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

(unaudited)

 

 

 

Six Months Ended

 

 

 

April 3, 2021

 

 

March 28, 2020

 

Operating Activities

 

 

 

 

 

 

 

 

Net loss

 

$

(36,709

)

 

$

(56,013)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

12,858

 

 

 

14,088

 

Equity-based compensation

 

 

14,111

 

 

 

1,195

 

Amortization of deferred financing costs and debt discounts

 

 

1,134

 

 

 

1,685

 

Provision for doubtful accounts

 

 

64

 

 

 

149

 

Deferred income taxes

 

 

(8,711

)

 

 

3,033

 

(Gain) loss on disposition of assets

 

 

(1,753

)

 

 

470

 

Loss on debt extinguishment

 

 

9,169

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts and other receivables

 

 

(10,316

)

 

 

(11,046)

 

Inventories

 

 

(127,814

)

 

 

(93,933)

 

Prepaid expenses and other current assets

 

 

(23,473

)

 

 

(20,063)

 

Other assets

 

 

228

 

 

 

150

 

Accounts payable and accrued expenses

 

 

64,332

 

 

 

50,829

 

Income taxes payable

 

 

(1,857

)

 

 

(6,713)

 

Operating lease assets and liabilities, net

 

 

(2,728

)

 

 

10,034

 

Net cash used in operating activities

 

 

(111,465

)

 

 

(106,135)

 

Investing Activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(9,490

)

 

 

(12,478)

 

Acquisitions, net of cash acquired

 

 

(6,040

)

 

 

(6,188)

 

Proceeds from disposition of fixed assets

 

 

2,404

 

 

 

6

 

Net cash used in investing activities

 

 

(13,126

)

 

 

(18,660)

 

Financing Activities

 

 

 

 

 

 

 

 

Borrowings on revolving commitment

 

 

 

 

 

181,750

 

Payments on revolving commitment

 

 

 

 

 

(131,750)

 

Repayment of long term debt

 

 

(392,085

)

 

 

(4,170)

 

Issuance of long term debt

 

 

907

 

 

 

 

Payment of deferred financing costs

 

 

(9,562

)

 

 

 

Proceeds from issuance of common stock upon initial public offering, net

 

 

458,587

 

 

 

 

Net cash provided by financing activities

 

 

57,847

 

 

 

45,830

 

Net decrease in cash and cash equivalents

 

 

(66,744

)

 

 

(78,965)

 

Cash and cash equivalents, beginning of period

 

 

157,072

 

 

 

90,899

 

Cash and cash equivalents, end of period

 

$

90,328

 

 

$

11,934

 

Supplemental Disclosure of Cash Payments for:

 

 

 

 

 

 

 

 

Interest

 

$

27,081

 

 

$

44,762

 

Income taxes

 

 

3,078

 

 

 

2,882

 

 

 


8

 


 

GAAP to Non-GAAP Reconciliation

(amounts in thousands except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

April 3, 2021

 

 

March 28, 2020

 

 

April 3, 2021

 

 

March 28, 2020

Net loss

 

$

(6,452)

 

 

$

(29,826)

 

 

$

(36,70)

 

 

$

(56,013)

Interest expense

 

 

8,126

 

 

 

22,709

 

 

 

19,642

 

 

 

45,126

Income tax benefit

 

 

(3,310)

 

 

 

(9,205)

 

 

 

(17,624)

 

 

 

(24,215)

Depreciation and amortization expenses(a)

 

 

6,263

 

 

 

6,812

 

 

 

12,858

 

 

 

14,088

Loss (gain) on disposition of fixed assets(b)

 

 

5

 

 

 

27

 

 

 

(1,753)

 

 

 

470

Management fee(c)

 

 

 

 

 

617

 

 

 

382

 

 

 

1,940

Equity-based compensation expense(d)

 

 

1,951

 

 

 

598

 

 

 

14,111

 

 

 

1,195

Mark-to-market on interest rate cap(e)

 

 

 

 

 

 

 

 

 

 

 

22

Loss on debt extinguishment(f)

 

 

1,888

 

 

 

 

 

 

9,169

 

 

 

Costs related to equity offerings(g)

 

 

1,057

 

 

 

 

 

 

9,209

 

 

 

Other(h)

 

 

 

 

 

187

 

 

 

 

 

 

302

Adjusted EBITDA

 

$

9,528

 

 

$

(8,081)

 

 

$

9,285

 

 

$

(17,085)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

April 3, 2021

 

 

March 28, 2020

 

 

April 3, 2021

 

 

March 28, 2020

Net loss

 

$

(6,452)

 

 

$

(29,826)

 

 

$

(36,709)

 

 

$

(56,013)

Loss (gain) on disposition of fixed assets(b)

 

 

5

 

 

 

27

 

 

 

(1,753)

 

 

 

470

Management fee(c)

 

 

 

 

 

617

 

 

 

382

 

 

 

1,940

Equity-based compensation expense(d)

 

 

1,951

 

 

 

598

 

 

 

14,111

 

 

 

1,195

Mark-to-market on interest rate cap(e)

 

 

 

 

 

 

 

 

 

 

 

22

Loss on debt extinguishment(f)

 

 

1,888

 

 

 

 

 

 

9,169

 

 

 

Costs related to equity offerings(g)

 

 

1,057

 

 

 

 

 

 

9,209

 

 

 

Other(h)

 

 

 

 

 

187

 

 

 

 

 

 

302

Tax effects of these adjustments(i)

 

 

(1,230)

 

 

 

(359)

 

 

 

(7,809)

 

 

 

(986)

Adjusted net loss

 

$

(2,781)

 

 

$

(28,756)

 

 

$

(13,400)

 

 

$

(53,070)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

April 3, 2021

 

 

March 28, 2020

 

 

April 3, 2021

 

 

March 28, 2020

Adjusted net loss per share

 

$

(0.01)

 

 

$

(0.18)

 

 

$

(0.07)

 

 

$

(0.34)

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Basic and diluted

 

 

186,810

 

 

 

156,500

 

 

 

181,900

 

 

 

156,500

 

(a)

Includes depreciation related to our distribution centers and stores, which is included within the cost of merchandise and services sold line item in our condensed consolidated statements of operations.

(b)

Consists of loss (gain) loss on disposition of assets associated with store closures or the sale of property and equipment.

(c)

Represents amounts paid or accrued in connection with our management services agreement. The management services agreement terminated upon the completion of our initial public offering during the six months ended April 3, 2021.

(d)

Represents non-cash charges related to equity-based compensation.

(e)

Includes non-cash charges related to the change in fair value of our interest rate cap agreements, which expired in March 2021.

(f)

Represents non-cash expense due to the write-off of deferred financing costs related to our Term Loan modification during the three months ended April 3, 2021 and the repayment of our Senior Unsecured Notes during the six months ended April 3, 2021.

(g)

Includes one-time payments of contractual amounts incurred in connection with our IPO that was completed in November 2020 and costs incurred for a follow-on equity offering in February 2021.

(h)

Other non-recurring, non-cash or discrete items as determined by management, such as transaction related costs, personnel-related costs, legal expenses, strategic project costs, and miscellaneous costs.

(i)

Represents the tax effect of the total adjustments based on our actual statutory tax rate for Fiscal 2020 and our estimated statutory tax rate for Fiscal 2021.

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