Tile Shop Holdings, Inc. Reports Preliminary Revenue Results for the Fourth Quarter and Year Ended December 31, 2013; Provides Earnings Guidance for the Fourth Quarter and Revises Earnings Guidance for the Full Year Ended December 31, 2013; Provides Earnings Guidance for the Full Year Ended December 31, 2014
January 27, 2014 at 05:26 pm EST
Share
Tile Shop Holdings, Inc. reported preliminary revenue results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported revenues were $57.8 million. Comparable store sales were 10.1%.
For the year, the company reported Revenues were $229.6 million, representing an annual increase of 26%. Comparable store sales were 12.4%.
For the fourth quarter ended December 31, 2013, the company's adjusted EBITDA is expected to range between $8 million and $10 million. Gross margins will be below 70% for the quarter.
For the year ended December 2013, while the annual result is within the guidance range previously communicated of $227 to $237 million, the fourth quarter sales were lower than anticipated. The company noted that revenues trailed off from earlier 2013 trends starting in mid-November due to a reduction in traffic, limited benefit of promotional activities and inclement weather in several of the company's key Upper Midwest and East Coast markets. Adjusted EBITDA is expected in the range of $53 to $55 million for full year 2013. The company had provided guidance that Adjusted EBITDA would approximate $60 million for the year. The lower than anticipated revenues, coupled with the lower gross margins, were the primary reasons that Adjusted EBITDA will be below expectations. Also contributing to the Adjusted EBITDA shortfall was: An approximately $1.1 million increase in sales and marketing expenses, which related to a planned advertising initiative that did not produce revenue related benefits in 2013, higher than expected health and benefit costs in the fourth quarter and pre-store opening expenses in the quarter were nearly $1.0 million which was approximately $200,000 above expectations due to slightly longer construction times and higher costs of certain locations. Gross margins will approximate 70% for the year.
The company is providing initial expectations for 2014, based on past performance, anticipated new store openings and current economic conditions. Guidance includes the anticipated impact from challenging weather in key markets in January 2014 and resulted in the temporary loss of selling days at select locations in three important markets. For the full year ended December 31, 2014, the company expects revenue to range from $285 million to $295 million, comparable Store sales to range from 5% to 7% and earnings per share to range from $0.43 to $0.47, assuming approximately 70% gross profit margins and 51.9 million fully diluted shares outstanding.
Tile Shop Holdings, Inc. is a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. The Company offers an assortment of natural stone and man-made tile products. Its natural stone products include marble, travertine, granite, quartz, sandstone, slate, and onyx tiles. The Company's man-made products include ceramic, porcelain, glass, cement, wood look, metal and luxury vinyl tile. The Companyâs assortment of accessories, including mosaics, pencils, listellos, and other products. It also offers a range of setting and maintenance materials, such as thinset, grout, sealers, and accessories, including installation tools, shower and bath shelves, drains, and similar products. The Company also offers customers delivery service through third-party freight providers. The Company sells its products under brand names, including Superior Adhesives & Chemicals, Superior Tools & Supplies, Rush River, and Fired Earth.
Tile Shop Holdings, Inc. Reports Preliminary Revenue Results for the Fourth Quarter and Year Ended December 31, 2013; Provides Earnings Guidance for the Fourth Quarter and Revises Earnings Guidance for the Full Year Ended December 31, 2013; Provides Earnings Guidance for the Full Year Ended December 31, 2014