Comparable store sales increased 3.2% versus Q1 fiscal 2020
Completed bankruptcy process with
Comparability to prior periods is difficult due to the Company’s reorganization under Chapter 11, Covid-19, and the elimination of promotional activity. For comparable store sales and inventory specifically, first quarter fiscal 2022 will be compared against first quarter fiscal 2020.
First Quarter Fiscal 2022 Results
- As of the end of the first quarter of fiscal 2022, the Company operated 489 stores compared to 490 stores at the end of the first quarter of fiscal 2021, and 707 stores at the end of the first quarter fiscal 2020.
- Comparable store sales increased 3.2% for the 489 stores that were open in the first quarter of fiscal 2022 and the first quarter of fiscal 2020, despite store inventory ending down 42% compared to the first quarter of fiscal 2020.
- Net sales were
$176.9 million in the first quarter of fiscal 2022. Net sales were$161.5 million for the first quarter of fiscal 2021. - Gross profit was
$51.0 million and gross margin was 28.8% for the first quarter of fiscal 2022. Gross profit was$51.1 million and gross margin was 31.6% for the first quarter of fiscal 2021. - SG&A was
$60.3 million in the first quarter of fiscal 2022. As a percentage of net sales, SG&A was 34.1% for the first quarter of fiscal 2022. In the first quarter of fiscal 2021, SG&A was$62.1 million , and as a percentage of sales SG&A was 38.4% for the period. - Operating loss for the first quarter of fiscal 2022 was
$11.7 million . Operating loss was$16.5 million in the first quarter of fiscal 2021. - The Company reported a net loss of
$14.6 million , or$0.17 per share, for the first quarter of fiscal 2022. Net income for the first quarter of fiscal 2021 was$18.6 million , or$0.41 per share. - EBITDA, a non-GAAP measure, was negative
$9.5 million for the first quarter of fiscal 2022. EBITDA was$25.5 million for the first quarter of 2021. Adjusted EBITDA, a non-GAAP measure, was negative$5.7 million and negative$6.0 million for the first quarter of fiscal 2022 and 2021, respectively. A reconciliation of GAAP and non-GAAP measures is provided below. - The Company ended the first quarter of fiscal 2022 with
$4.6 million in cash and cash equivalents and$22.4 million outstanding under its line of credit with availability on the line of$39.7 million compared to$61.9 million in cash and cash equivalents and$0.1 million outstanding under its line of credit in the same period of fiscal 2021. - We officially completed the bankruptcy process and negotiated the final claims resulting in
$14 million of cash returned to the Company. - Inventories at the end of the first quarter of fiscal 2022 were
$174.1 million compared to$108.1 million in the same period of fiscal 2021.
Outlook
Given the continued headwinds from the industry wide supply chain dislocation, the Company continues to expect to report an Adjusted EBITDA loss for fiscal 2022, slightly improved from fiscal 2021.
The Company continues to expect to maintain sufficient liquidity to cover its obligations and plans for the fiscal year.
About Tuesday Morning
Tuesday Morning Corporation is one of the original off-price retailers specializing in name-brand, high-quality products for the home, including upscale home textiles, home furnishings, housewares, gourmet food, toys and seasonal décor, at prices generally below those found in boutique, specialty and department stores, catalogs and on-line retailers. Based in Dallas,
Conference Call Information
Tuesday Morning Corporation’s management will hold a conference call to review first quarter fiscal 2022 financial results today,
Cautionary Statement 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 typically are identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend” and similar words, although some forward-looking statements are expressed differently. Forward-looking statements include statements regarding management’s plans and strategies and projections with respect to Adjusted EBITDA, cash flow and liquidity. 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
Caitlin.Churchill@icrinc.com
MEDIA:
TuesdayMorning@edelman.com
Tuesday Morning Corporation | ||||||||
Consolidated Balance Sheet | ||||||||
(In thousands) | ||||||||
(unaudited) | (audited) | (unaudited) | ||||||
Cash and cash equivalents | $ | 4,550 | $ | 6,534 | $ | 61,884 | ||
Restricted cash | 137 | 22,321 | - | |||||
Inventories | 174,149 | 145,075 | 108,101 | |||||
Prepaid expenses and other | 10,923 | 8,871 | 8,174 | |||||
Current assets | 189,759 | 182,801 | 178,159 | |||||
Property and equipment, net | 33,838 | 37,784 | 64,431 | |||||
Operating lease right of use assets | 185,619 | 193,244 | 204,343 | |||||
Other | 3,760 | 4,055 | 3,392 | |||||
Total Assets | $ | 412,976 | $ | 417,884 | $ | 450,325 | ||
Debtor-in-possession financing | $ | - | $ | - | $ | 100 | ||
Accounts payable | 56,814 | 45,930 | 24,963 | |||||
Accrued liabilities and other | 41,876 | 46,454 | 34,241 | |||||
Operating lease liabilities | 55,388 | 54,632 | - | |||||
Current liabilities | 154,078 | 147,016 | 59,304 | |||||
Operating lease liabilities-non-current | 146,533 | 156,240 | - | |||||
Borrowings under revolving credit facility | 22,390 | 12,000 | - | |||||
Long term debt | 27,396 | 26,374 | - | |||||
Other non-current liabilities | 2,709 | 3,432 | 3,064 | |||||
Asset retirement obligation | 1,066 | 1,021 | 1,094 | |||||
Liabilities subject to compromise | - | - | 360,876 | |||||
Total Liabilities | 354,172 | 346,083 | 424,338 | |||||
Stockholders' Equity | 58,804 | 71,801 | 25,987 | |||||
Total Liabilities and Equity | $ | 412,976 | $ | 417,884 | $ | 450,325 | ||
Tuesday Morning Corporation | |||||||
Consolidated Statement of Operations | |||||||
(In thousands, except per share data) | |||||||
unaudited | |||||||
For the Three Months Ended | |||||||
2021 | 2020 | ||||||
Net sales | $ | 176,872 | $ | 161,546 | |||
Cost of sales | 125,858 | 110,476 | |||||
Gross margin | 51,014 | 51,070 | |||||
Selling, general and administrative expenses | 60,277 | 62,069 | |||||
Restructuring, impairment, and abandonment charges | 2,430 | 5,489 | |||||
Operating loss before interest, reorganization and other income/(expense) | (11,693 | ) | (16,488 | ) | |||
Other income/(expense): | |||||||
Interest expense | (1,716 | ) | (2,753 | ) | |||
Reorganization items, net | (1,292 | ) | 37,624 | ||||
Other income, net | 49 | 5 | |||||
Earnings/(loss) before taxes | (14,652 | ) | 18,388 | ||||
Income tax benefit | (49 | ) | (236 | ) | |||
Net Earnings/(loss) | $ | (14,603 | ) | $ | 18,624 | ||
Earnings Per Share | |||||||
Net earnings/(loss) per common share: | |||||||
Basic | $ | (0.17 | ) | $ | 0.41 | ||
Diluted | $ | (0.17 | ) | $ | 0.41 | ||
Weighted average number of common shares: | |||||||
Basic | 84,310 | 45,462 | |||||
Diluted | 84,310 | 45,462 | |||||
Tuesday Morning Corporation | ||||||||
Consolidated Statement of Cash Flows | ||||||||
(In thousands) | ||||||||
unaudited | ||||||||
For the Three Months Ended | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net earnings/(loss) | $ | (14,603 | ) | $ | 18,624 | |||
Adjustments to reconcile net income/(loss) to net cash provided by/(used) in operating activities: | ||||||||
Depreciation and amortization | 3,397 | 4,384 | ||||||
Loss on impairment and abandonment of assets | 2,089 | 4,804 | ||||||
Amortization of financing costs and interest expense | 1,267 | 2,466 | ||||||
(Gain)/loss on disposal of assets | 68 | (1,037 | ) | |||||
Share-based compensation | 1,173 | 582 | ||||||
Gain on lease terminations | - | (82,010 | ) | |||||
Deferred income taxes | (118 | ) | - | |||||
Construction allowances from landlords | 426 | 120 | ||||||
Change in operating assets and liabilities | (26,915 | ) | 67,311 | |||||
Net cash provided by/(used in) operating activities | (33,216 | ) | 15,244 | |||||
Cash flows from investing activities | ||||||||
Capital expenditures | (1,761 | ) | (619 | ) | ||||
Proceeds from sales of assets | - | 1,096 | ||||||
Net cash provided by/(used in) investing activities | (1,761 | ) | 477 | |||||
Cash flows from financing activities | ||||||||
Proceeds under revolving credit facility | 209,314 | 170,280 | ||||||
Repayments under revolving credit facility | (198,924 | ) | (170,280 | ) | ||||
Proceeds from the exercise of employee stock options | 467 | - | ||||||
Tax payments related to vested deferred stock awards | (12 | ) | - | |||||
Payments on finance leases | (36 | ) | (69 | ) | ||||
Payments of financing fees | - | (444 | ) | |||||
Net cash provided by/(used in) financing activities | 10,809 | (513 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (24,168 | ) | 15,208 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 28,855 | 46,676 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 4,687 | $ | 61,884 | ||||
Tuesday Morning Corporation
Non-GAAP Financial Measures
Unaudited
Non-GAAP Financial Measures
We define EBITDA as net income 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 income 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.
Tuesday Morning Corporation | ||||||||
Adjusted EBITDA | ||||||||
(In thousands) | ||||||||
unaudited | ||||||||
For the Three Months Ended | ||||||||
2021 | 2020 | |||||||
Net income/(loss) | $ | (14,603 | ) | $ | 18,624 | |||
Income tax benefit | (49 | ) | (236 | ) | ||||
Net interest expense | 1,716 | 2,753 | ||||||
Depreciation & amortization | 3,397 | 4,384 | ||||||
EBITDA | $ | (9,539 | ) | $ | 25,525 | |||
Share-based compensation expense (1) | $ | 1,173 | $ | 582 | ||||
Restructure, impairment and abandonment charges (2) | 2,430 | 5,489 | ||||||
Re-organization items, net (3) | 1,292 | (37,624 | ) | |||||
Other (4) | (1,017 | ) | - | |||||
Adjusted EBITDA | $ | (5,661 | ) | $ | (6,028 | ) | ||
(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 |
Source:
2021 GlobeNewswire, Inc., source