The Container Store Group, Inc. Announces Second Quarter Fiscal 2021 Financial Results
Delivers the best second quarter consolidated net sales and earnings per share on record
Consolidated net sales of $276.0 million, up 11.2% compared to Q2 fiscal 2020 and up 16.7% compared to Q2 fiscal 2019
Earnings per diluted share of $0.54 compared to $0.41 in the second quarter of fiscal 2020; Adjusted earnings per share* of $0.54 compared to $0.43 in the second quarter of fiscal 2020
COPPELL, Texas–(BUSINESS WIRE)–The Container Store Group, Inc. (NYSE: TCS) (the “Company”), today announced financial results for the second quarter of fiscal year 2021 ended October 2, 2021. The second quarter of fiscal year 2021 consisted of thirteen weeks.
For the second quarter of fiscal 2021:
-
Consolidated net sales were $276.0 million, an increase of 11.2% compared to the thirteen weeks ended September 26, 2020. Compared to second quarter fiscal 2019, consolidated net sales increased 16.7%.
- Net sales in The Container Store retail business (TCS) were $259.4 million, up 11.3% compared to the second quarter of fiscal 2020, inclusive of a 22.1% increase in Custom Closets and a 3.1% increase in other product categories. Compared to the second quarter of fiscal 2019, TCS net sales were up 17.2%, inclusive of a 21.7% increase in Custom Closets and a 13.5% increase in other product categories.
- Elfa International AB (Elfa) third-party net sales were $16.6 million, up 8.8% compared to the second quarter of fiscal 2020. Excluding the impact of foreign currency translation, Elfa third-party net sales were up 5.7% compared to the second quarter of fiscal 2020 and up 6.0% compared to the second quarter of fiscal 2019.
- Consolidated net income increased 34.6% to $27.2 million compared to a consolidated net income of $20.2 million in the second quarter of fiscal 2020. Consolidated net income per diluted share (EPS) was $0.54 compared to $0.41 in the second quarter of fiscal 2020 and $0.08 in the second quarter of fiscal 2019.
- Adjusted net income* increased 29.9% to $27.2 million compared to adjusted net income* of $20.9 million in the second quarter of fiscal 2020. Adjusted net income per diluted share (Adjusted EPS)* was $0.54, compared to $0.43 in the second quarter of fiscal 2020 and $0.08 in the second quarter of fiscal 2019.
- Adjusted EBITDA* increased 8.3% to $47.7 million in the second quarter of fiscal 2021 compared to $44.1 million in the second quarter of fiscal 2020 and increased 112.9% compared to $22.4 million in the second quarter of fiscal 2019.
Satish Malhotra, Chief Executive Officer and President of The Container Store commented, “Our results reflect continued momentum as we delivered record-breaking fiscal second quarter performance on both the top and bottom line. We were particularly pleased with the 22% sales increase in our Custom Closets business, and our other product categories increased 3% despite being up against a 10% sales increase in the second quarter last year. This performance in a dynamic operating environment is a testament to the execution of our incredible teams across the organization. As we look ahead, we continue to see great opportunity to double the size of our business over time, and the progress we are making against our strategic initiatives has us firmly on the path to achieving our goals.”
Second Quarter Fiscal 2021 Results
For the second quarter (thirteen weeks) ended October 2, 2021:
- Consolidated net sales were $276.0 million, up 11.2% compared to the second quarter of fiscal 2020. Compared to second quarter fiscal 2019, consolidated net sales increased 16.7%. TCS net sales were $259.4 million, an increase of 11.3% with Custom Closets up 22.1%, contributing 960 basis points of the increase, and other product categories up 3.1%, contributing 170 basis points of the increase. Our online sales decreased 23.9% compared to the second quarter of fiscal 2020. Elfa third-party net sales were $16.6 million, up 8.8% compared to the second quarter of fiscal 2020. Excluding the impact of foreign currency translation, Elfa third-party net sales were up 5.7%. As a result of the impact of the COVID-19 pandemic on our Company’s stores in the second quarter of fiscal 2020 and the Company’s policy of excluding extended store closures from its comparable sales calculation, the Company does not believe that comparable store sales is a meaningful metric to present for the second quarter of fiscal 2021.
- Consolidated gross margin was 59.3%, an increase of 50 basis points, compared to the second quarter of fiscal 2020. TCS gross margin increased 60 basis points to 58.1%, primarily due to decreased shipping costs as a result of a lower mix of online sales, combined with less promotional activity and a favorable mix of products and services, partially offset by increased freight costs in the second quarter of fiscal 2021. Elfa gross margin decreased 800 basis points primarily due to higher direct material costs and unfavorable customer mix.
- Consolidated selling, general and administrative expenses (SG&A) increased by 12.7% to $114.1 million in the second quarter of fiscal 2021 from $101.2 million in the second quarter of fiscal 2020 as we restored certain expenses that were temporarily suspended in fiscal 2020 as part of our COVID-19 pandemic management strategy. SG&A as a percentage of net sales increased 50 basis points primarily due to increased compensation and benefits costs, partially offset by leverage of occupancy and other costs on higher sales in the second quarter of fiscal 2021.
- Consolidated net interest expense decreased 29.1% to $3.2 million in the second quarter of fiscal 2021 from $4.5 million in the second quarter of fiscal 2020. The decrease was primarily due to a lower principal balance on the Senior Secured Term Loan Facility combined with lower interest rates.
- The effective tax rate was 25.7% in the second quarter of fiscal 2021, as compared to 31.0% in the second quarter of fiscal 2020. The decrease in the effective tax rate was primarily due to the impact of permanent and discrete items on higher pre-tax income in the second quarter of fiscal 2021.
- Net income was $27.2 million in the second quarter of fiscal 2021 compared to $20.2 million in the second quarter of fiscal 2020. EPS in the second quarter of fiscal 2021 was $0.54 compared to $0.41 in the second quarter of fiscal 2020. Adjusted net income* was $27.2 million, or $0.54 per diluted share, in the second quarter of fiscal 2021 compared to adjusted net income* of $20.9 million, or $0.43 per diluted share in the second quarter of fiscal 2020.
- Adjusted EBITDA* was $47.7 million in the second quarter of fiscal 2021 compared to $44.1 million in the second quarter of fiscal 2020.
For the year-to-date (twenty-six weeks) ended October 2, 2021:
- Consolidated net sales were $521.3 million, up 30.3% as compared to the first half of fiscal 2020. Compared to the first half of fiscal 2019, consolidated net sales increased 16.9%. Net sales at TCS were $488.1 million, up 31.1%, with Custom Closets up 36.9%, contributing 1690 basis points of the increase, and other product categories up 26.1%, contributing 1420 basis points of the increase. Our online sales decreased 40.0% compared to the first half of fiscal 2020. Elfa third-party net sales were $33.2 million, up 20.4% compared to the first half of fiscal 2020; however, excluding the impact of foreign currency translation, Elfa third-party net sales were up 10.8%. As a result of the impact of the COVID-19 pandemic on our Company’s stores in the first half of fiscal 2020 and the Company’s policy of excluding extended store closures from its comparable sales calculation, the Company does not believe that comparable store sales is a meaningful metric to present for the first half of fiscal 2021.
- Consolidated gross margin was 59.4%, an increase of 330 basis points compared to the first half of fiscal 2020. TCS gross margin increased 360 basis points to 58.2%, primarily due to less promotional activity combined with decreased shipping costs as a result of a lower mix of online sales, and partially offset by increased freight costs in the first half of fiscal 2021. Elfa gross margin decreased 690 basis points primarily due to higher direct material costs and unfavorable customer mix.
- Consolidated SG&A increased by 19.6% to $224.2 million from $187.5 million in the first half of fiscal 2020. SG&A as a percentage of net sales decreased 390 basis points. The decrease was primarily due to leverage of occupancy, marketing and other costs on higher sales, partially offset by an increase in compensation and benefits costs in the first half of fiscal 2021.
- Consolidated net interest expense decreased 32.5% to $6.4 million in the first half of fiscal 2021 from $9.4 million in the first half of fiscal 2020. The decrease is primarily due to a lower principal balance on the Senior Secured Term Loan Facility combined with lower interest rates and decreased borrowings on the asset-based revolving credit agreement.
- The effective tax rate was 25.1% as compared to 38.1% in the first half of fiscal 2021. The decrease in the effective tax rate is primarily due to the impact of permanent and discrete items on higher pre-tax income in the first half of fiscal 2021.
- Net income was $44.9 million, or $0.88 per diluted share, in the first half of fiscal 2021 compared to net income of $3.5 million, or $0.07 per diluted share in the first half of fiscal 2020. Adjusted net income* was $45.3 million, or $0.89 per diluted share, in the first half of fiscal 2021 compared to adjusted net income* of $5.4 million, or $0.11 per diluted share in the first half of fiscal 2020.
- Adjusted EBITDA* was $81.3 million in the first half of fiscal 2021 compared to $48.5 million in the first half of fiscal 2020.
New and Existing Stores
During the first quarter of fiscal 2021, the Company opened one new store in Annapolis, Maryland. As of October 2, 2021, the Company store base was 94 compared to 93 stores as of September 26, 2020.
Outlook
The Company currently expects third quarter of fiscal 2021 consolidated sales decline of approximately 5% as compared to the third quarter of fiscal 2020. EPS for the third quarter of fiscal 2021 is expected to be approximately $0.20.
Balance sheet and liquidity highlights:
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|
|
|
|
|
|
|
|
(In thousands) |
|
October 2, 2021 |
|
September 26, 2020 |
||
|
Cash |
|
$ |
23,137 |
|
$ |
61,847 |
|
Total debt, net of deferred financing costs |
|
$ |
166,389 |
|
$ |
245,032 |
|
Liquidity (1) |
|
$ |
132,465 |
|
$ |
168,535 |
|
Free cash flow (*) |
|
$ |
10,392 |
|
$ |
84,319 |
| _______________________ | ||
| (1) |
Cash plus availability on revolving credit facilities. |
|
* See Reconciliation of GAAP to Non-GAAP Financial Measures table.
Conference Call Information
A conference call to discuss second quarter fiscal 2021 financial results is scheduled for today, November 2, 2021, at 4:30 PM Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-3982 (international callers please dial (201) 493-6780) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call, together with certain supplemental presentation materials, will be available online at investor.containerstore.com.
A taped replay of the conference call will be available within two hours of the conclusion of the call and can be accessed both online and by dialing (844) 512-2921 (international callers please dial (412) 317-6671). The pin number to access the telephone replay is 13722781. The replay will be available until December 2, 2021.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our future opportunities; our goals, strategies, priorities and initiatives; sales trends, momentum and targets; and our anticipated financial performance.
These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the COVID-19 pandemic and the associated impact on our business, results of operations and financial condition; our ability to continue to lease space on favorable terms; costs and risks relating to new store openings; quarterly and seasonal fluctuations in our operating results; cost increases that are beyond our control; our inability to protect our brand; our failure or inability to protect our intellectual property rights; overall decline in the health of the economy, consumer spending, and the housing market; our inability to source and market new products to meet consumer preferences; failure to successfully anticipate consumer preferences and demand; competition from other stores and internet-based competition; vendors may sell similar or identical products to our competitors; our and our vendors’ vulnerability to natural disasters and other unexpected events; disruptions at our Elfa manufacturing facilities; deterioration or change in vendor relationships or events that adversely affect our vendors or their ability to obtain financing for their operations, including COVID-19; product recalls and/or product liability, as well as changes in product safety and other consumer protection laws; risks relating to operating two distribution centers; our dependence on foreign imports for our merchandise; our reliance upon independent third party transportation providers; our inability to effectively manage our online sales; effects of a security breach or cyber-attack of our website or information technology systems, including relating to our use of third-party web service providers; damage to, or interruptions in, our information systems as a result of external factors, working from home arrangements, staffing shortages and difficulties in updating our existing software or developing or implementing new software; our indebtedness may restrict our current and future operations, and we may not be able to refinance our debt on favorable terms, or at all; fluctuations in currency exchange rates; our inability to maintain sufficient levels of cash flow to meet growth expectations; our fixed lease obligations; disruptions in the global financial markets leading to difficulty in borrowing sufficient amounts of capital to finance the carrying costs of inventory to pay for capital expenditures and operating costs; changes to global markets and inability to predict future interest expenses; our reliance on key executive management; our inability to find, train and retain key personnel; labor relations difficulties; increases in health care costs and labor costs; violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery and anti-kickback laws; impairment charges and effects of changes in estimates or projections used to assess the fair value of our assets; effects of tax reform and other tax fluctuations; significant fluctuations in the price of our common stock; substantial future sales of our common stock, or the perception that such sales may occur, which could depress the price of our common stock; risks related to being a public company; our performance meeting guidance provided to the public; anti-takeover provisions in our governing documents, which could delay or prevent a change in control; and our failure to establish and maintain effective internal controls.
These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, (the “SEC”) on June 3, 2021 and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
About The Container Store
The Container Store Group, Inc. (NYSE: TCS) is the nation’s leading specialty retailer of storage and organization products and solutions and custom closets – a concept they originated in 1978. Today, with locations nationwide, the retailer offers more than 11,000 products designed to transform lives through the power of organization.
Visit www.containerstore.com for more information about products, store locations, services offered and real-life inspiration.
Follow The Container Store on Facebook, Twitter, Instagram, TikTok, YouTube, Pinterest and LinkedIn.
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The Container Store Group, Inc. |
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Consolidated statements of operations |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
||||||||||
|
(In thousands, except share and per share amounts) |
|
October 2, |
|
September 26, |
|
October 2, |
|
September 26, |
||||||
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
||
|
Net sales |
|
$ |
275,954 |
|
$ |
248,241 |
|
$ |
521,269 |
|
|
$ |
399,927 |
|
|
Cost of sales (excluding depreciation and amortization) |
|
|
112,416 |
|
|
102,183 |
|
|
211,407 |
|
|
|
175,630 |
|
|
Gross profit |
|
|
163,538 |
|
|
146,058 |
|
|
309,862 |
|
|
|
224,297 |
|
|
Selling, general, and administrative expenses (excluding depreciation and amortization) |
|
|
114,062 |
|
|
101,193 |
|
|
224,210 |
|
|
|
187,458 |
|
|
Stock-based compensation |
|
|
1,086 |
|
|
1,977 |
|
|
1,955 |
|
|
|
2,809 |
|
|
Pre-opening costs |
|
|
72 |
|
|
7 |
|
|
666 |
|
|
|
16 |
|
|
Depreciation and amortization |
|
|
8,544 |
|
|
8,823 |
|
|
16,745 |
|
|
|
17,772 |
|
|
Other expenses |
|
|
— |
|
|
294 |
|
|
— |
|
|
|
1,102 |
|
|
Gain on disposal of assets |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
|
(6 |
) |
|
Income from operations |
|
|
39,774 |
|
|
33,764 |
|
|
66,291 |
|
|
|
15,146 |
|
|
Interest expense, net |
|
|
3,186 |
|
|
4,491 |
|
|
6,371 |
|
|
|
9,441 |
|
|
Income before taxes |
|
|
36,588 |
|
|
29,273 |
|
|
59,920 |
|
|
|
5,705 |
|
|
Provision for income taxes |
|
|
9,393 |
|
|
9,073 |
|
|
15,053 |
|
|
|
2,175 |
|
|
Net income |
|
$ |
27,195 |
|
$ |
20,200 |
|
$ |
44,867 |
|
|
$ |
3,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income per common share — basic |
|
$ |
0.55 |
|
$ |
0.42 |
|
$ |
0.91 |
|
|
$ |
0.07 |
|
|
Net income per common share — diluted |
|
$ |
0.54 |
|
$ |
0.41 |
|
$ |
0.88 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Weighted-average common shares — basic |
|
|
49,468,324 |
|
|
48,513,826 |
|
|
49,274,611 |
|
|
|
48,451,508 |
|
|
Weighted-average common shares — diluted |
|
|
50,217,614 |
|
|
48,782,505 |
|
|
51,112,668 |
|
|
|
48,630,246 |
|
|
The Container Store Group, Inc. |
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Consolidated balance sheets |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 2, |
|
April 3, |
|
September 26, |
|||
|
(In thousands) |
|
2021 |
|
2021 |
|
2020 |
|||
|
Assets |
|
(unaudited) |
|
|
|
|
(unaudited) |
||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
23,137 |
|
$ |
17,687 |
|
$ |
61,847 |
|
Accounts receivable, net |
|
|
31,035 |
|
|
28,949 |
|
|
29,053 |
|
Inventory |
|
|
173,141 |
|
|
130,619 |
|
|
117,715 |
|
Prepaid expenses |
|
|
12,690 |
|
|
11,429 |
|
|
10,391 |
|
Income taxes receivable |
|
|
840 |
|
|
93 |
|
|
93 |
|
Other current assets |
|
|
13,354 |
|
|
14,547 |
|
|
12,926 |
|
Total current assets |
|
|
254,197 |
|
|
203,324 |
|
|
232,025 |
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
130,733 |
|
|
131,884 |
|
|
136,573 |
|
Noncurrent operating lease right-of-use assets |
|
|
304,194 |
|
|
307,147 |
|
|
304,390 |
|
Goodwill |
|
|
202,815 |
|
|
202,815 |
|
|
202,815 |
|
Trade names |
|
|
227,476 |
|
|
227,669 |
|
|
226,562 |
|
Deferred financing costs, net |
|
|
229 |
|
|
255 |
|
|
135 |
|
Noncurrent deferred tax assets, net |
|
|
905 |
|
|
2,305 |
|
|
2,444 |
|
Other assets |
|
|
2,660 |
|
|
3,070 |
|
|
3,110 |
|
Total noncurrent assets |
|
|
869,012 |
|
|
875,145 |
|
|
876,029 |
|
Total assets |
|
$ |
1,123,209 |
|
$ |
1,078,469 |
|
$ |
1,108,054 |
|
The Container Store Group, Inc. |
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Consolidated balance sheets (continued) |
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|
|||
|
|
|
October 2, |
|
April 3, |
|
September 26, |
||||||
|
(In thousands, except share and per share amounts) |
|
2021 |
|
2021 |
|
2020 |
||||||
|
Liabilities and shareholders’ equity |
|
(unaudited) |
|
|
|
|
(unaudited) |
|||||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
|
Accounts payable |
|
$ |
86,232 |
|
|
$ |
68,546 |
|
|
$ |
85,680 |
|
|
Accrued liabilities |
|
|
85,848 |
|
|
|
86,551 |
|
|
|
76,734 |
|
|
Current borrowings on revolving lines of credit |
|
|
59 |
|
|
|
— |
|
|
|
1,107 |
|
|
Current portion of long-term debt |
|
|
2,136 |
|
|
|
2,166 |
|
|
|
6,970 |
|
|
Current operating lease liabilities |
|
|
50,177 |
|
|
|
50,847 |
|
|
|
54,724 |
|
|
Income taxes payable |
|
|
2,852 |
|
|
|
6,803 |
|
|
|
2,797 |
|
|
Total current liabilities |
|
|
227,304 |
|
|
|
214,913 |
|
|
|
228,012 |
|
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
|
|||
|
Long-term debt |
|
|
164,194 |
|
|
|
163,818 |
|
|
|
236,955 |
|
|
Noncurrent operating lease liabilities |
|
|
278,235 |
|
|
|
285,022 |
|
|
|
292,142 |
|
|
Noncurrent deferred tax liabilities, net |
|
|
46,650 |
|
|
|
48,923 |
|
|
|
48,556 |
|
|
Other long-term liabilities |
|
|
12,108 |
|
|
|
12,124 |
|
|
|
13,094 |
|
|
Total noncurrent liabilities |
|
|
501,187 |
|
|
|
509,887 |
|
|
|
590,747 |
|
|
Total liabilities |
|
|
728,491 |
|
|
|
724,800 |
|
|
|
818,759 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|||
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|||
|
Common stock, $0.01 par value, 250,000,000 shares authorized; 49,545,153 shares issued at October 2, 2021; 48,838,261 shares issued at April 3, 2021; 48,570,280 shares issued at September 26, 2020 |
|
|
495 |
|
|
|
488 |
|
|
|
486 |
|
|
Additional paid-in capital |
|
|
871,545 |
|
|
|
873,048 |
|
|
|
869,167 |
|
|
Accumulated other comprehensive loss |
|
|
(21,325 |
) |
|
|
(19,003 |
) |
|
|
(24,741 |
) |
|
Retained deficit |
|
|
(455,997 |
) |
|
|
(500,864 |
) |
|
|
(555,617 |
) |
|
Total shareholders’ equity |
|
|
394,718 |
|
|
|
353,669 |
|
|
|
289,295 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,123,209 |
|
|
$ |
1,078,469 |
|
|
$ |
1,108,054 |
|
|
|
|
|
|
|
|
|
||
|
The Container Store Group, Inc. |
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|
Consolidated statements of cash flows |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
Twenty-Six Weeks Ended |
||||||
|
|
|
October 2, |
|
September 26, |
||||
|
(In thousands) |
|
2021 |
|
2020 |
||||
|
|
|
|
(unaudited) |
|
|
(unaudited) |
||
|
Operating activities |
|
|
|
|
|
|
||
|
Net income |
|
$ |
44,867 |
|
|
$ |
3,530 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
16,745 |
|
|
|
17,772 |
|
|
Stock-based compensation |
|
|
1,955 |
|
|
|
2,809 |
|
|
Gain on disposal of assets |
|
|
(5 |
) |
|
|
(6 |
) |
|
Deferred tax expense (benefit) |
|
|
454 |
|
|
|
(4,726 |
) |
|
Non-cash interest |
|
|
940 |
|
|
|
931 |
|
|
Other |
|
|
(247 |
) |
|
|
80 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
(2,105 |
) |
|
|
(2,529 |
) |
|
Inventory |
|
|
(42,836 |
) |
|
|
8,748 |
|
|
Prepaid expenses and other assets |
|
|
(2,125 |
) |
|
|
(2,266 |
) |
|
Accounts payable and accrued liabilities |
|
|
17,359 |
|
|
|
46,227 |
|
|
Net change in lease assets and liabilities |
|
|
(4,493 |
) |
|
|
9,672 |
|
|
Income taxes |
|
|
(5,562 |
) |
|
|
7,493 |
|
|
Other noncurrent liabilities |
|
|
30 |
|
|
|
3,448 |
|
|
Net cash provided by operating activities |
|
|
24,977 |
|
|
|
91,183 |
|
|
|
|
|
|
|
|
|
||
|
Investing activities |
|
|
|
|
|
|
||
|
Additions to property and equipment |
|
|
(14,585 |
) |
|
|
(6,864 |
) |
|
Proceeds from sale of property and equipment |
|
|
5 |
|
|
|
6 |
|
|
Net cash used in investing activities |
|
|
(14,580 |
) |
|
|
(6,858 |
) |
|
|
|
|
|
|
|
|
||
|
Financing activities |
|
|
|
|
|
|
||
|
Borrowings on revolving lines of credit |
|
|
24,923 |
|
|
|
22,242 |
|
|
Payments on revolving lines of credit |
|
|
(24,863 |
) |
|
|
(30,849 |
) |
|
Borrowings on long-term debt |
|
|
5,000 |
|
|
|
— |
|
|
Payments on long-term debt |
|
|
(5,597 |
) |
|
|
(81,482 |
) |
|
Payment of taxes with shares withheld upon restricted stock vesting |
|
|
(4,677 |
) |
|
|
(406 |
) |
|
Proceeds from the exercise of stock options |
|
|
226 |
|
|
|
— |
|
|
Net cash used in financing activities |
|
|
(4,988 |
) |
|
|
(90,495 |
) |
|
|
|
|
|
|
|
|
||
|
Effect of exchange rate changes on cash |
|
|
41 |
|
|
|
262 |
|
|
|
|
|
|
|
|
|
||
|
Net increase (decrease) in cash |
|
|
5,450 |
|
|
|
(5,908 |
) |
|
Cash at beginning of fiscal period |
|
|
17,687 |
|
|
|
67,755 |
|
|
Cash at end of fiscal period |
|
$ |
23,137 |
|
|
$ |
61,847 |
|
Note Regarding Non-GAAP Information
This press release includes financial measures that are not calculated in accordance with GAAP, including adjusted net income (loss), adjusted net income (loss) per common share – diluted, Adjusted EBITDA, and free cash flow.
Contacts
Investors:
ICR, Inc.
Farah Soi/Caitlin Churchill
203-682-8200
Farah.Soi@icrinc.com
Caitlin.Churchill@icrinc.com
or
Media:
The Container Store Group, Inc.
Katelyn Clinton, 972-538-6491
publicrelations@containerstore.com