LONDON–(BUSINESS WIRE)–$SHCO–Soho House & Co Inc. (NYSE: SHCO) (“SHCO,” “Company,” “we” or “our”), a global membership platform that connects a vibrant, diverse, and global group of members, today announced results for the third quarter ended October 1, 2023.
Third Quarter 2023 Highlights
- Total Members in the third quarter 2023 grew to 255,252 from 248,071 in second quarter 2023 and by 20.8% year-over-year
- Soho House Members grew to 184,542 from 176,305 in second quarter 2023, and 21.3% year-over-year
- SHCO Membership waitlist now sits at approximately 98,000, an all-time high, and retention rates continue around pre-pandemic levels
- Total revenues of $301.0 million, 13.1% year-over-year growth
- Membership revenues of $93.3 million increased by 31.3% year-over-year, accounting for 31.0% of Total revenues
- In-House revenues grew to $115.3 million up 6.3% year-over-year
- Revenue Per Available Room (“RevPAR”) grew 6% year-over-year on a like-for-like basis
- Net loss attributable to Soho House & Co Inc. was $42.4 million or $0.22 per share
- Adjusted EBITDA was $42.1 million, up $21.8 million from third quarter 2022
- Opened Soho House Mexico City in September 2023
- Plan to open Portland and Sao Paulo around the end of the year
- Effective November 1, 2023, Tom Collins, former Managing Director – UK Europe & Asia, was appointed as Chief Operating Officer of the Company
“This has been another quarter of strong execution against our strategic objectives. Adjusted EBITDA more than doubled year-on-year, supported by 14% margins. Total revenues increased by 13% year-on-year, with continued strong growth in recurring membership revenues. We welcomed 8,000 net new members in the quarter, inclusive of the very successful opening of Soho House Mexico City,” said Andrew Carnie, CEO of Soho House & Co.
“Our third quarter results and fourth quarter performance to date lead us to again increase our full year Adjusted EBITDA and total members guidance. We are also setting year-end 2024 membership guidance to exceed 210,000 Soho House members. I would like to thank our teams globally for their commitment as we continue to grow and enhance the experience for our members, whilst operating efficiently to drive greater profitability.”
Summary of Financial Results for the Quarter Ended October 1, 2023 | |||||||
| For the 13 Weeks Ended | ||||||
(in thousands, except shares and per share amount unless otherwise noted) | October 1, 2023 |
| October 2, 2022 | ||||
Total revenues | $ | 300,957 |
|
| $ | 266,046 |
|
Membership revenues |
| 93,279 |
|
|
| 71,023 |
|
In-House revenues |
| 115,288 |
|
|
| 108,488 |
|
Other revenues |
| 92,390 |
|
|
| 86,535 |
|
Operating income (loss) |
| (20,403 | ) |
|
| (70,581 | ) |
House-Level Contribution(1) |
| 52,773 |
|
|
| 32,599 |
|
House-Level Contribution margin (%)(1) |
| 26 | % |
|
| 19 | % |
Other Contribution(1) |
| 27,995 |
|
|
| 19,753 |
|
Other contribution margin (%)(1) |
| 28 | % |
|
| 21 | % |
Net income (loss) attributable to SHCO |
| (42,362 | ) |
|
| (91,668 | ) |
Adjusted EBITDA(1) |
| 42,051 |
|
|
| 20,260 |
|
Adjusted EBITDA margin (%)(1) |
| 14 | % |
|
| 8 | % |
Weighted average Class A and Class B Shares outstanding (basic) |
| 196,153,371 |
|
|
| 199,390,524 |
|
Basic and diluted income (loss) per share | $ | (0.22 | ) |
| $ | (0.46 | ) |
(1) | See “Non-GAAP Financial Measures” for reconciliations of Non-GAAP measures to GAAP measures. |
The following selected expenses listed below are not added back in Adjusted EBITDA:
| For the 13 Weeks Ended | ||||||
(in thousands) | October 1, 2023 |
| October 2, 2022 | ||||
Pre-opening expenses |
| 5,093 |
|
| $ | 2,555 |
|
Non-cash rent |
| 1,317 |
|
|
| 4,654 |
|
Deferred registration fees, net |
| (465 | ) |
|
| (489 | ) |
We delivered the following highlights against our strategic priorities in the third quarter
1. Grow and Enhance Membership
- Membership continues to reach new highs benefiting from a record waitlist and continued high retention rates
- Soho House members grew to 184,542 from 176,305 in second quarter 2023, and 21.3% YoY
- Focused rollout of new initiatives has improved member experience leading to elevated performance across Houses
- Opened Mexico City in September 2023, expect to open Portland and Sao Paulo around the end of the year
2. Operational Excellence to Drive Profitability
- We achieved third quarter 2023 Adjusted EBITDA of $42.1 million, an increase of $21.8 million compared to third quarter 2022
- In-House revenues grew to $115.3 million in third quarter 2023, up from $108.5 million in third quarter 2022
- Like-for-like F&B margins at our Houses rose 230bps vs. third quarter 2019
- Focus on driving accommodations performance resulted in 6% RevPAR growth in third quarter 2023 vs. third quarter 2022 on a like-for-like basis
Membership Summary for the Quarter Ended October 1, 2023 | |||
| As of | ||
| October 1, 2023 |
| October 2, 2022 |
Total Members | 255,252 |
| 211,351 |
Soho House | 184,542 |
| 152,165 |
Frozen Members | 5,417 |
| 2,187 |
Soho Friends | 64,614 |
| 52,698 |
Soho Works | 6,096 |
| 6,488 |
SH APP Active Users | 187,759 |
| 156,769 |
|
| As of | ||||
|
| October 1, |
| October 2, | ||
|
| (Unaudited) | ||||
Number of Soho Houses |
|
| 42 |
|
| 38 |
North America |
|
| 15 |
|
| 13 |
United Kingdom |
|
| 13 |
|
| 13 |
Europe/RoW |
|
| 14 |
|
| 12 |
Number of Soho House Members |
|
| 184,542 |
|
| 152,165 |
North America |
|
| 67,664 |
|
| 57,221 |
United Kingdom |
|
| 67,931 |
|
| 58,106 |
Europe/RoW |
|
| 39,850 |
|
| 30,374 |
All Other |
|
| 9,097 |
|
| 6,464 |
Number of Other Members |
|
| 70,710 |
|
| 59,186 |
North America |
|
| 19,239 |
|
| 16,200 |
United Kingdom |
|
| 42,402 |
|
| 35,969 |
Europe/RoW |
|
| 9,069 |
|
| 7,017 |
Number of Total Members |
|
| 255,252 |
|
| 211,351 |
Number of Active App Users |
|
| 187,759 |
|
| 156,769 |
Memberships
- Total Members grew to 255,252 from 248,071 in second quarter 2023 and by 20.8% year-over-year
- Total Soho House Members grew to 184,542 from 176,305 in second quarter 2023, as retention rates remain around pre-pandemic levels, alongside membership intakes in both new and existing Houses
- Frozen Members was 5,417 at the end of third quarter 2023. Frozen members as a % of total membership is still below pre-pandemic levels
- Other Memberships including Soho Friends and Soho Works increased to 70,710 members, a decrease of 1,056 from the end of second quarter 2023 and a 19.5% increase year-over-year
Financing
- Soho House & Co Inc. ended third quarter 2023 with Cash and cash equivalents and Restricted cash of $163 million
- In September, the Company repurchased 2 million of its Class A Common Stock for $12 million
Updated Fiscal 2023 Guidance
The following forward-looking statements reflect our current expectations as of today, November 10, 2023:
|
|
|
|
|
|
| Fiscal 2022 Results Actuals | Fiscal 2023 Old Guidance | Fiscal 2023 New Guidance |
Total Soho House Members |
| 161,975 | >191,000 | >192,000 |
Membership revenues |
| $273m | $360m – $367m | $361m – $366m |
Total revenues* |
| $972m | $1.12b – $1.19b | $1.13b – $1.16b |
Adjusted EBITDA** |
| $61m | $126m – $134m | $130m – $135m |
*Assumes ~$20m YoY headwind from FX, reflecting EUR/USD at 1.07 and GBP/USD at 1.22 for fiscal 2023 |
**Without adding back pre-opening costs, non-cash rent and deferred registration fees of ~$25-30m combined for fiscal 2023 as a whole |
Looking further ahead, we also expect to exceed 210,000 members by the end of fiscal 2024.
Conference Call and Webcast:
A conference call and live webcast will be hosted to discuss these results on Friday, November 10, 2023, at 9am EST / 2pm GMT.
A live broadcast and accompanying presentation will be available at www.sohohouseco.com.
To listen to the live conference call via telephone, please dial:
USA
New York (646) 307 1963
USA & Canada Toll-Free (800) 715 9871
UK
London +44 (0)20 3481 4247
UK Toll-Free +44 (0)800 260 6466
Conference ID 7256454
A replay of the webcast will be available on our website following the call for up to 90 days.
Non-GAAP Financial Measures
This presentation contains certain financial measures, including Adjusted EBITDA, House-Level Contribution and Margin, Other Contribution and Margin and certain financial measures presented on a Constant Currency basis that are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (‘GAAP’). We refer to these measures as ‘non-GAAP financial measures.’ We use these non-GAAP financial measures when planning, monitoring and evaluating our performance. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues or net income (loss), in each case as recognized in accordance with GAAP. In addition, other companies may calculate one or more of these measures differently, which reduces the usefulness of any such measure as a comparative measure. See below for a definition of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures.
We provide earnings guidance using both GAAP and non-GAAP financial measures. A reconciliation of the Company’s Adjusted EBITDA guidance to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that are made for future changes in foreign exchange and the other adjustments reflected in our reconciliation of historical non-GAAP financial measures, the amounts of which, could be material.
The information in this presentation should be read in conjunction with our Annual and Quarterly Reports on Form 10-K and Form 10-Q and other information that we file with the SEC. The reconciliations of non-GAAP financial measures are an integral part of the information presented herein. You can access these documents on our website, www.sohohouseco.com, free of charge, as well as any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The information contained on our website is not incorporated by reference into, and should not be considered a part of, this presentation.
In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC at www.sec.gov.
The non-GAAP financial measures we use herein are defined by us as follows:
ADJUSTED EBITDA. Adjusted EBITDA is a supplemental measure of our performance. Adjusted EBITDA is defined as Net income (loss) before Depreciation and amortization, Interest expense, net, Income tax (expense) benefit, adjusted to take account of the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These other items include, but are not limited to, Gain (loss) on sale of property and other, net, Share of loss (profit) from equity method investments, Foreign exchange, Share of equity method investments adjusted EBITDA and Share-based compensation expense. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses (income) that do not relate to ongoing business performance.
HOUSE-LEVEL CONTRIBUTION AND MARGIN. House-Level Contribution is defined as House Revenues less In-House operating expenses, which includes expense items such as food and beverage costs, labor costs, variable overheads and fixed costs, such as rent. It does not reflect the impact of depreciation, amortization, impairment, gain or loss on sale of property, or general and administrative expenses. House-Level Contribution Margin is defined as House-Level Contribution as a percentage of our House Revenues and is a key determinant of our performance and profitability and our return on the investment we make in each of our Houses. Given that all costs associated with providing our members with the Soho House experience, including the costs associated with maintaining our Houses and providing services to members while in the Houses, are included in In-House operating expenses, we use House Revenues (inclusive of House Membership Revenues) in calculating House-Level Contribution and House-Level Contribution Margin to assess the overall profitability of our Houses. Accordingly, our management considers House-Level Contribution and House-Level Contribution Margin to be an important management measure to evaluate the performance of each House, and growth in aggregate House-Level Contribution allows us to leverage our general and administrative costs and improve overall profitability.
OTHER CONTRIBUTION AND MARGIN. Other Contribution is defined as Other revenues plus Non-House Membership Revenues less Other operating expenses, which includes expense items not related to the operation of Houses, such as labor costs, variable overheads and fixed costs, such as rent. It does not reflect the impact of depreciation, amortization, impairment, gain or loss on sale of property, or general and administrative expenses. Other Contribution Margin defined as Other Contribution as a percentage of our Other revenues and is a key determinant of our performance and profitability and our return on the investment in our non-House business. Our management considers Other Contribution and Contribution Margin to be an important management measure.
CONSTANT CURRENCY. Some of our financial and operational data that we disclose in this release is presented on a ‘constant currency’ basis to isolate the effect of currency changes during the period. Where we refer to a measure being calculated in ‘constant currency,’ we are calculating the dollar change and the percentage change as if the exchange rate that is being used in the current period was in effect for all prior periods presented. We believe that this calculation provides a more meaningful indication of actual year over year performance and eliminates any fluctuations from currency exchange rates.
While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues or net income (loss), in each case as recognized in accordance with GAAP. In addition, other companies may calculate one or more of these measures differently, which reduces the usefulness of any such measure as a comparative measure.
A reconciliation of Net loss to Adjusted EBITDA for the 13 weeks ending October 1, 2023 and October 2, 2022 is set forth below: | ||||||||||||||||
|
| For the 13 Weeks Ended |
| Percent Change | ||||||||||||
|
| October 1, |
| October 2, |
| Actuals |
| Constant | ||||||||
|
| Actuals |
|
| ||||||||||||
|
| (Unaudited, dollar amounts in thousands, except share and per share amounts or unless otherwise noted) | ||||||||||||||
Net income (loss) |
| $ | (41,450 | ) |
| $ | (91,373 | ) |
|
| 55 | % |
|
| 58 | % |
Depreciation and amortization |
|
| 24,516 |
|
|
| 26,971 |
|
|
| (9 | )% |
|
| (15 | )% |
Interest expense, net |
|
| 18,799 |
|
|
| 18,453 |
|
|
| 2 | % |
|
| (5 | )% |
Income tax expense |
|
| 4,208 |
|
|
| 3,013 |
|
|
| 40 | % |
|
| 30 | % |
EBITDA |
|
| 6,073 |
|
|
| (42,936 | ) |
| n/m |
|
| n/m |
| ||
Loss on sale of property and other, net |
|
| (7 | ) |
|
| 12 |
|
| n/m |
|
| n/m |
| ||
Share of income of equity method investments |
|
| (1,953 | ) |
|
| (686 | ) |
| n/m |
|
| n/m |
| ||
Foreign exchange (gain) loss, net⁽²⁾ |
|
| 30,698 |
|
|
| 53,910 |
|
|
| (43 | )% |
|
| (47 | )% |
Share of equity method investments adjusted EBITDA |
|
| 2,557 |
|
|
| 1,978 |
|
|
| 29 | % |
|
| 20 | % |
Share-based compensation expense(3) |
|
| 4,683 |
|
|
| 3,980 |
|
|
| 18 | % |
|
| 10 | % |
Operational reorganization and severance expense(4) |
|
| — |
|
|
| 4,046 |
|
|
| — |
|
|
| — |
|
Membership credits rebate(5) |
|
| — |
|
|
| (44 | ) |
| n/m |
|
| n/m |
| ||
Adjusted EBITDA |
| $ | 42,051 |
|
| $ | 20,260 |
|
| n/m |
|
|
| 93 | % | |
1. | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
2. | Primarily driven by foreign exchange volatility impacting our non-USD debt and working capital. |
3. | This excludes a $4 million non-cash expense, which is included within Share-based compensation expense in the Condensed Consolidated Statements of Operations, separately presented within Operational reorganization and severance expense below. |
4. | Represents expenses incurred with respect to an internal reorganization program of the Company’s operations team. In the 13 weeks ended October 2, 2022 this includes a non-cash share-based compensation expense of $4 million and cash severance related to the departure of the former Chief Operating Officer of the Company. The non-cash share-based compensation expense is reported within Share-based compensation expense in the unaudited condensed consolidated statement of operations for the 13 weeks ended October 2, 2022. |
5. | Beginning on March 14, 2020, due to the COVID-19 pandemic, we issued membership credits to active members of our closed Houses to be redeemed for certain Soho Home products and services. Membership credits were a one-time goodwill gesture, issued as a marketing offer to active members. The expense represents our best estimate of the cost in fulfilling the membership credits. |
A Reconciliation of Operating loss to House-Level Contribution & Other Contribution for the 13 weeks ending October 1, 2023 and October 2, 2022 is set forth below: | |||||||||||||||||||
| For the 13 Weeks Ended |
|
|
|
|
|
| ||||||||||||
| October 1, |
| October 2, |
| Change % |
| October 2, 2022 |
| Constant Currency | ||||||||||
| Actuals |
|
|
|
| ||||||||||||||
| (Unaudited, dollar amounts in thousands) | ||||||||||||||||||
Operating profit (loss) | $ | (20,403 | ) |
| $ | (70,581 | ) |
|
| 71 | % |
| $ | (82,788 | ) |
|
| 75 | % |
General and administrative |
| 35,564 |
|
|
| 30,807 |
|
|
| 15 | % |
| $ | 33,047 |
|
|
| 8 | % |
Pre-opening expenses |
| 5,093 |
|
|
| 2,555 |
|
|
| 99 | % |
| $ | 2,741 |
|
|
| 86 | % |
Depreciation and amortization |
| 24,516 |
|
|
| 26,971 |
|
|
| (9 | )% |
| $ | 28,932 |
|
|
| (15 | )% |
Share-based compensation |
| 4,683 |
|
|
| 7,778 |
|
|
| (40 | )% |
| $ | 8,343 |
|
|
| (44 | )% |
Foreign exchange (gain) loss, net |
| 30,698 |
|
|
| 53,910 |
|
|
| (43 | )% |
| $ | 57,829 |
|
|
| (47 | )% |
Other |
| 617 |
|
|
| 912 |
|
|
| (32 | )% |
| $ | 978 |
|
|
| (37 | )% |
Non-House membership revenues |
| (9,314 | ) |
|
| (7,700 | ) |
|
| (21 | )% |
| $ | (8,260 | ) |
|
| (13 | )% |
Other revenues |
| (92,390 | ) |
|
| (86,535 | ) |
|
| (7 | )% |
| $ | (91,686 | ) |
|
| (1 | )% |
Other operating expenses |
| 73,709 |
|
|
| 74,482 |
|
|
| (1 | )% |
|
| 79,897 |
|
|
| (8 | )% |
House-Level Contribution | $ | 52,773 |
|
| $ | 32,599 |
|
|
| 62 | % |
| $ | 29,033 |
|
|
| 82 | % |
Operating profit (loss) margin |
| (7 | )% |
|
| (27 | )% |
|
|
|
| (27 | )% |
|
| ||||
House-Level contribution margin |
| 26 | % |
|
| 19 | % |
|
|
|
| 19 | % |
|
| ||||
| For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
| |||||||
| October 1, |
|
| October 2, |
|
| Change % |
|
| October 2, 2022 |
|
| Constant Currency | ||||
| Actuals |
|
|
|
|
|
| ||||||||||
| (Unaudited, dollar amounts in thousands) | ||||||||||||||||
Operating profit (loss) | $ | (20,403 | ) |
| $ | (70,581 | ) |
| 71 | % |
| $ | (82,788 | ) |
| 75 | % |
General and administrative |
| 35,564 |
|
|
| 30,807 |
|
| 15 | % |
|
| 33,047 |
|
| 8 | % |
Pre-opening expenses |
| 5,093 |
|
|
| 2,555 |
|
| 99 | % |
|
| 2,741 |
|
| 86 | % |
Depreciation and amortization |
| 24,516 |
|
|
| 26,971 |
|
| (9 | )% |
|
| 28,932 |
|
| (15 | )% |
Share-based compensation |
| 4,683 |
|
|
| 7,778 |
|
| (40 | )% |
|
| 8,343 |
|
| (44 | )% |
Foreign exchange (gain) loss, net |
| 30,698 |
|
|
| 53,910 |
|
| (43 | )% |
|
| 57,829 |
|
| (47 | )% |
Other |
| 617 |
|
|
| 912 |
|
| (32 | )% |
|
| 978 |
|
| (37 | )% |
House membership revenues |
| (83,965 | ) |
|
| (63,323 | ) |
| (33 | )% |
|
| (65,347 | ) |
| (28 | )% |
In-House revenues |
| (115,288 | ) |
|
| (108,488 | ) |
| (6 | )% |
|
| (113,018 | ) |
| (2 | )% |
In-House operating expenses |
| 146,480 |
|
|
| 139,212 |
|
| 5 | % |
|
| 149,332 |
|
| (2 | )% |
Total Other Contribution | $ | 27,995 |
|
| $ | 19,753 |
|
| 42 | % |
| $ | 20,049 |
|
| 40 | % |
Operating profit (loss) margin |
| (7 | )% |
|
| (27 | )% |
|
|
|
|
| (27 | )% |
|
| |
Other Contribution Margin |
| 28 | % |
|
| 21 | % |
|
|
|
|
| 21 | % |
|
| |
Condensed Unaudited Consolidated Statements of Operations for the 13 weeks ended October 1, 2023 and October 2, 2022: | |||||||
| For the 13 Weeks Ended | ||||||
(in thousands, except for per share data) | October 1, 2023 |
| October 2, 2022 | ||||
Revenues |
|
|
|
|
| ||
Membership revenues | $ | 93,279 |
|
| $ | 71,023 |
|
In-House revenues |
| 115,288 |
|
|
| 108,488 |
|
Other revenues |
| 92,390 |
|
|
| 86,535 |
|
Total revenues |
| 300,957 |
|
|
| 266,046 |
|
Operating expenses |
|
|
|
|
| ||
In-House operating expenses |
| (146,480 | ) |
|
| (139,212 | ) |
Other operating expenses |
| (73,709 | ) |
|
| (74,482 | ) |
General and administrative expenses |
| (35,564 | ) |
|
| (30,807 | ) |
Pre-opening expenses |
| (5,093 | ) |
|
| (2,555 | ) |
Depreciation and amortization |
| (24,516 | ) |
|
| (26,971 | ) |
Share-based compensation |
| (4,683 | ) |
|
| (7,778 | ) |
Foreign exchange gain (loss), net |
| (30,698 | ) |
|
| (53,910 | ) |
Other, net |
| (617 | ) |
|
| (912 | ) |
Total operating expenses |
| (321,360 | ) |
|
| (336,627 | ) |
Operating income (loss) |
| (20,403 | ) |
|
| (70,581 | ) |
Other (expense) income |
|
|
|
|
| ||
Interest expense, net |
| (18,799 | ) |
|
| (18,453 | ) |
Gain (loss) on sale of property and other, net |
| 7 |
|
|
| (12 | ) |
Share of income of equity method investments |
| 1,953 |
|
|
| 686 |
|
Total other expense, net |
| (16,839 | ) |
|
| (17,779 | ) |
Income (loss) before income taxes |
| (37,242 | ) |
|
| (88,360 | ) |
Income tax expense |
| (4,208 | ) |
|
| (3,013 | ) |
Net income (loss) |
| (41,450 | ) |
|
| (91,373 | ) |
Net income (loss) attributable to noncontrolling interests |
| (912 | ) |
|
| (295 | ) |
Net income (loss) attributable to Soho House & Co Inc. | $ | (42,362 | ) |
| $ | (91,668 | ) |
Net income (loss) per share attributable to Class A and Class B common stock |
|
|
|
|
| ||
Basic and diluted | $ | (0.22 | ) |
| $ | (0.46 | ) |
Weighted average shares outstanding |
|
|
|
|
| ||
Basic and diluted |
| 196,153 |
|
|
| 199,391 |
|
Condensed Unaudited Consolidated Statements of Cash flows for the 39 weeks ended October 1, 2023 and October 2, 2022: | |||||||
| For the 39 Weeks Ended | ||||||
(in thousands) | October 1, 2023 |
| October 2, 2022 | ||||
Cash flows from operating activities |
|
|
| ||||
Net income (loss) | $ | (59,753 | ) |
| $ | (235,554 | ) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
| ||||
Depreciation and amortization | $ | 74,229 |
|
| $ | 72,490 |
|
Non-cash share-based compensation |
| 15,154 |
|
|
| 18,865 |
|
Deferred tax benefit |
| (778 | ) |
|
| (299 | ) |
Gain on sale of property and other, net |
| (596 | ) |
|
| (1,529 | ) |
Share of (income) loss of equity method investments |
| (4,411 | ) |
|
| (2,426 | ) |
Amortization of debt issuance costs |
| 2,110 |
|
|
| 3,471 |
|
Loss on debt extinguishment |
| 3,278 |
|
|
| — |
|
PIK interest (settled), net of non-cash interest |
| 27,908 |
|
|
| 25,663 |
|
Distributions from equity method investees |
| 162 |
|
|
| 596 |
|
Foreign exchange (gain) loss, net |
| (3,899 | ) |
|
| 128,160 |
|
Changes in assets and liabilities: | 0 |
|
| 0 |
| ||
Accounts receivable |
| (22,110 | ) |
|
| (14,986 | ) |
Inventories |
| 2,465 |
|
|
| (12,509 | ) |
Operating leases, net |
| 5,558 |
|
|
| 30,283 |
|
Other operating assets |
| (25,212 | ) |
|
| (31,670 | ) |
Deferred revenue |
| 7,467 |
|
|
| 26,341 |
|
Accounts payable and accrued and other liabilities |
| 8,904 |
|
|
| 31,210 |
|
Net cash provided by operating activities |
| 30,476 |
|
|
| 38,106 |
|
Cash flows from investing activities |
|
|
| ||||
Purchase of property and equipment |
| (50,440 | ) |
|
| (62,989 | ) |
Proceeds from sale of assets |
| 1,368 |
|
|
| 665 |
|
Purchase of intangible assets |
| (13,989 | ) |
|
| (17,628 | ) |
Property and casualty insurance proceeds received |
| 148 |
|
|
| 338 |
|
Net cash used in investing activities |
| (62,913 | ) |
|
| (79,614 | ) |
Cash flows from financing activities |
|
|
| ||||
Repayment of borrowings |
| (117,350 | ) |
|
| (533 | ) |
Payment for debt extinguishment costs |
| (1,686 | ) |
|
| — |
|
Issuance of related party loans |
| — |
|
|
| 3,217 |
|
Proceeds from borrowings |
| 140,000 |
|
|
| 105,795 |
|
Payments for debt issuance costs |
| (2,822 | ) |
|
| (1,860 | ) |
Principal payments on finance leases |
| (221 | ) |
|
| (431 | ) |
Principal payments on financing obligation |
| — |
|
|
| (1,175 | ) |
Distributions to noncontrolling interests |
| (390 | ) |
|
| (771 | ) |
Purchase of treasury stock |
| (12,000 | ) |
|
| (34,802 | ) |
Additional IPO costs |
| — |
|
|
| (269 | ) |
Net cash provided by financing activities |
| 5,531 |
|
|
| 69,171 |
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
| (97 | ) |
|
| (13,224 | ) |
Net (decrease) increase in cash and cash equivalents, and restricted cash |
| (27,003 | ) |
|
| 14,439 |
|
Cash, cash equivalents and restricted cash |
|
|
| ||||
Beginning of period |
| 190,043 |
|
|
| 220,662 |
|
End of period | $ | 163,040 |
|
| $ | 235,101 |
|
| For the 39 Weeks Ended | ||||
(in thousands) | October 1, 2023 |
| October 2, 2022 | ||
Cash, cash equivalents and restricted cash are comprised of: |
|
|
| ||
Cash and cash equivalents |
| 162,540 |
|
| 227,896 |
Restricted cash |
| 500 |
|
| 7,205 |
Cash, cash equivalents and restricted cash as of October 1, 2023 and October 2, 2022 | $ | 163,040 |
| $ | 235,101 |
Supplemental disclosures: |
|
|
| ||
Cash paid for interest | $ | 24,004 |
| $ | 22,504 |
Cash paid for income taxes |
| 3,027 |
|
| 138 |
Supplemental disclosures of non-cash investing and financing activities: |
|
|
| ||
Operating lease assets obtained in exchange for new operating lease liabilities |
| 79,631 |
|
| 101,640 |
Acquisitions of property and equipment under finance leases |
| 33 |
|
| 11,357 |
Accrued capital expenditures |
| 11,736 |
|
| 7,908 |
Contacts
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