Reaffirms Full Year 2023 Guidance
Solo Brands, Inc. (NYSE: DTC) (“Solo Brands” or “the Company”)
today announced its financial results for the three and nine month
periods ended September 30, 2023.
Third Quarter 2023 Highlights Compared to Third Quarter
2022
- Net sales of $110.3 million, up $8.2 million or 8.0%
- Net income of $3.1 million, up $7.1 million or 176.7%
- Income (loss) per Class A common stock - basic and diluted of
$0.07
- Adjusted net income(1) of $15.2 million, up $7.6 million or
100.7%
- Adjusted EBITDA(1) of $15.0 million, up $3.7 million or
33.0%
- Adjusted EPS(1) of $0.28 per diluted share, up $0.13
Nine Months Ended 2023 Highlights Compared to Nine Months
Ended 2022
- Net sales of $329.5 million, up $9.1 million or 2.8%
- Net income of $15.5 million, up $42.7 million or 157.2%
- Income (loss) per Class A common stock - basic and diluted of
$0.20, up $0.46
- Net cash provided by operating activities of $39.2 million, up
$74.5 million or 210.9%
- Free cash flow(1) of $32.2 million, up $75.1 million or
175.2%
- Adjusted net income(1) of $43.4 million, up $7.4 million or
20.7%
- Adjusted EBITDA(1) of $55.3 million, up $6.4 million or
13.1%
- Adjusted EPS(1) of $0.66 per diluted share, down $0.08
“We delivered third quarter results exceeding expectations
largely driven by strong retail sales. Brand momentum is
encouraging as we grow our retailer relationships,” said John
Merris, Chief Executive Officer of Solo Brands. “Looking ahead at
the all-important fourth quarter, we recognize the headwinds
consumers are facing. However, we have a lot of exciting, unique
and compelling marketing programs to reach new customers, which we
believe will stand out from the crowd and drive enthusiasm for our
brand. We are well positioned to navigate an uncertain consumer
environment given the resilience and strength of our financial
model. Solo Brands generates healthy EBITDA margins, has low
financial leverage, a balanced omnichannel sales approach, and is
capital-lite, leading to strong free cash flow.”
Operating Results for the Three Months
Ended September 30, 2023
Net sales increased 8.0% to $110.3 million compared to
$102.2 million in the third quarter of 2022. Continued expansion of
the wholesale network led to an increase in wholesale channel
revenue, partially offset by a decrease in our direct-to-consumer
channel revenue driven by a product mix shift along with decreased
digital marketing spend.
- Wholesale revenues increased 114.3% to $34.0 million compared
to $15.9 million in the third quarter of 2022.
- Direct-to-consumer revenues decreased 11.6% to $76.3 million
compared to $86.3 million in the third quarter of 2022.
Gross profit increased 5.5% to $68.3 million compared to
$64.7 million in the third quarter of 2022 primarily driven by an
increase in net sales. Gross margin decreased 1.4% to 61.9% when
compared to the same period of the prior year due to a mix shift to
wholesale vs prior year.
Selling, general and administrative (SG&A) expenses
increased 3.1% to $61.3 million compared to $59.5 million in the
third quarter of 2022. The increase was driven by $0.9 million of
higher fixed costs and $0.9 million increase in variable costs.
Income (loss) per Class A common stock basic and diluted
per share was $0.07 for the third quarter of 2023 compared to
$(0.03) for the third quarter of 2022.
Adjusted EPS(1) was $0.28 per diluted share for the third
quarter of 2023 compared to $0.15 for the third quarter of
2022.
Operating Results for the Nine Months
Ended September 30, 2023
Net sales increased 2.8% to $329.5 million compared to
$320.4 million in the prior year. The increase was primarily driven
by strength with our key strategic retailers and continued market
penetration within the wholesale channel, partially offset by a
decrease in our direct-to-consumer channel revenue driven by a
product mix shift, including products and accessories launched in
the second half of 2022 and increased volume for apparel products,
along with decreased digital marketing spend.
- Wholesale revenues increased 70.9% to $98.7 million compared to
$57.8 million in the prior year.
- Direct-to-consumer revenues decreased 12.1% to $230.7 million
compared to $262.6 million in the prior year.
Gross profit increased 2.8% to $205.7 million compared to
$200.2 million in the prior year primarily due to the increase in
net sales. Gross margin decreased (0.1)% to 62.4% when compared to
the same period of the prior year driven by wholesale mix shift
offset by a decrease in freight costs.
Selling, general and administrative (SG&A) expenses
decreased 2.8% to $169.5 million compared to $174.3 million in the
prior year period. The decrease was driven by an $11.3 million
decrease in variable costs, partially offset by $6.4 million of
higher fixed costs. The variable cost decrease was primarily due to
lower marketing and distribution expenses, as well as fair value
changes of the contingent consideration. The fixed cost increase
was due to increases in employee costs as a result of equity-based
compensation, bonus expense, severance, and increases in rent as a
result of the addition of new store fronts and warehouse
locations.
Impairment charges fully decreased from $30.6 million, of
which $27.9 million related to goodwill for the Company’s ISLE
reporting unit and $2.7 million related to the ISLE trademark
intangible. No impairment charges were recorded during the nine
months ended September 30, 2023.
Income (loss) per Class A common stock basic and diluted
per share was $0.20 compared to $(0.26) in the prior year.
Adjusted EPS(1) was $0.66 per diluted share compared to
$0.74 in the prior year.
Balance Sheet
Cash and cash equivalents were $16.6 million at September
30, 2023 compared to $23.3 million at December 31, 2022.
Outstanding borrowings were $75.0 million under the
Revolving Credit Facility, and $92.5 million under the Term Loan
Agreement as of September 30, 2023. The borrowing capacity on the
Revolving Credit Facility was $350.0 million as of September 30,
2023, leaving $275.0 million of availability.
Inventory was $114.1 million at September 30, 2023
compared to $133.0 million at December 31, 2022. The decrease in
inventory is due to prudent inventory management resulting in lower
replenishments following the peak season in the fourth quarter of
2022.
Full Year 2023 Guidance
For fiscal 2023, we continue to expect revenue to be in the
range of $520 to $540 million, with the most likely outcome at the
midpoint of that range of $530 million which reflects the pressure
from the macro environment as well as the timing of shipments that
pulled forward from Q4 into Q3. We also continue to expect to
deliver Adjusted EBITDA margin of between 17% to 18% for the full
year.
The Company’s full year 2023 guidance is based on a number of
assumptions that are subject to change, many of which are outside
the Company’s control. If actual results vary from these
assumptions, the Company’s expectations may change. There can be no
assurance that the Company will achieve these results.
*
The Company has not provided a
quantitative reconciliation of forecasted adjusted EBITDA margin to
forecasted GAAP net income (loss) margin as a percent of net sales,
respectively, within this press release because the Company is
unable, without making unreasonable efforts, to calculate certain
reconciling items with confidence. With respect to GAAP net income
(loss) margin, these items include, but are not limited to,
equity-based compensation with respect to future grants and
forfeitures, which could materially affect the computation of
forward-looking GAAP net income, and are inherently uncertain and
depend on various factors, some of which are outside of the
Company’s control.
(1)
This release includes references
to non-GAAP financial measures. Refer to “Non-GAAP Financial
Measures” later in this release for the definitions of the non-GAAP
financial measures presented and a reconciliation of these measures
to their closest comparable GAAP measures.
Conference Call Details
A conference call to discuss the Company's third quarter 2023
results is scheduled for November 7, 2023, at 8:30 a.m. ET. To
participate, please dial +1 833-470-1428 or +1 929-526-1599 for
international callers, conference ID 466721. The conference call
will also be webcast live at https://investors.solobrands.com. A
recording will be available shortly after the conclusion of the
call. To access the replay, please dial 866-813-9403 or +44
204-525-0658 for international callers, conference ID 460910. A
replay of the webcast will also be available approximately two
hours after the conclusion of the call on the Company's website at
https://investors.solobrands.com where it will remain available for
one year.
About Solo Brands, Inc.
Solo Brands, headquartered in Grapevine, TX, develops and
produces ingenious lifestyle products that help customers create
lasting memories. Through an omni-channel distribution model that
leverages e-commerce, strategic wholesale relationships and
physical retail stores, Solo Brands offers innovative products to
consumers through four lifestyle brands – Solo Stove, known for its
firepits, stoves, and accessories, Chubbies, a premium casual
apparel and activewear brand, Oru Kayak, innovator of origami
folding kayaks, ISLE, maker of inflatable and hard paddle boards
and accessories.
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 without limitation statements
regarding expectations of achieving long-term profitability and our
anticipated GAAP and non-GAAP guidance for the fiscal year ending
December 31, 2023. In some cases, you can identify forward-looking
statements by terms such as “may,” “will,” “should,” “expects,”
“plans,” “anticipates,” “could,” “intends,” “targets,” “projects,”
“contemplates,” “believes,” “estimates,” “forecasts,” “guidance,”
“predicts,” “potential” or “continue” or the negative of these
terms or other similar expressions. These statements are neither
promises nor guarantees, and 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: our ability to manage our future growth
effectively; our ability to expand into additional markets; our
ability to maintain and strengthen our brand to generate and
maintain ongoing demand for our products; our ability to
cost-effectively attract new customers and retain our existing
customers; our failure to maintain product quality and product
performance at an acceptable cost; the impact of product liability
and warranty claims and product recalls; the highly competitive
market in which we operate; business interruptions resulting from
geopolitical actions, natural disasters, or pandemics; risks
associated with our international operations; and problems with, or
loss of, our suppliers or an inability to obtain raw materials; and
the ability of our stockholders to influence corporate matters.
These and other important factors discussed under the caption "Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2022, and any subsequent Quarterly Reports on Form
10-Q, Current Reports on Form 8-K, or other filings we make with
the Securities and Exchange Commission could cause actual results
to differ materially from those indicated by the forward-looking
statements made in this press release. Forward-looking statements
speak only as of the date the statements are made and are based on
information available to Solo Brands at the time those statements
are made and/or management's good faith belief as of that time with
respect to future events. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
Availability of Information on Solo Brands’ Website and
Social Media Profiles
Investors and others should note that Solo Brands routinely
announces material information to investors and the marketplace
using SEC filings, press releases, public conference calls,
webcasts and the Solo Brands investors website at
https://investors.solobrands.com. We also intend to use the social
media profiles listed below as a means of disclosing information
about us to our customers, investors and the public. While not all
of the information that the Company posts to the Solo Brands
investors website or to social media profiles is of a material
nature, some information could be deemed to be material.
Accordingly, the Company encourages investors, the media, and
others interested in Solo Brands to review the information that it
shares at the “Investors” link located at the top of the page on
https://solobrands.com and to regularly follow our social media
profiles. Users may automatically receive email alerts and other
information about Solo Brands when enrolling an email address by
visiting "Investor Email Alerts" in the "Resources" section of Solo
Brands investor website at https://investors.solobrands.com.
Social Media Profiles: https://linkedin.com/company/solo-brands/
https://instagram.com/solobrands/
https://www.facebook.com/groups/368095467245044/
SOLO BRANDS, INC.
Consolidated Statements of
Operations and Comprehensive Income (Loss)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(In thousands, except per unit
data)
2023
2022
2023
2022
Net sales
$
110,324
$
102,162
$
329,458
$
320,384
Cost of goods sold
42,065
37,482
123,725
120,175
Gross profit
68,259
64,680
205,733
200,209
Operating expenses
Selling, general & administrative
expenses
61,333
59,489
169,479
174,299
Depreciation and amortization expenses
7,052
6,216
19,579
18,194
Impairment charges
—
—
—
30,589
Other operating expenses
1,199
2,260
3,736
3,580
Total operating expenses
69,584
67,965
192,794
226,662
Income (loss) from operations
(1,325
)
(3,285
)
12,939
(26,453
)
Non-operating (income) expense
Interest expense, net
2,766
1,805
7,542
3,838
Other non-operating (income) expense
(983
)
(90
)
(6,861
)
514
Total non-operating (income) expense
1,783
1,715
681
4,352
Income (loss) before income taxes
(3,108
)
(5,000
)
12,258
(30,805
)
Income tax expense (benefit)
(6,191
)
(980
)
(3,272
)
(3,677
)
Net income (loss)
3,083
(4,020
)
15,530
(27,128
)
Less: net income (loss) attributable to
noncontrolling interests
(1,045
)
(1,816
)
3,054
(10,850
)
Net income (loss) attributable to Solo
Brands, Inc.
$
4,128
$
(2,204
)
$
12,476
$
(16,278
)
Other comprehensive income
(loss)
Foreign currency translation, net of
tax
$
(593
)
$
(21
)
$
(472
)
$
49
Comprehensive income (loss)
2,490
(4,041
)
15,058
(27,079
)
Less: other comprehensive income (loss)
attributable to noncontrolling interests
(214
)
(7
)
(171
)
16
Less: net income (loss) attributable to
noncontrolling interests
(1,045
)
(1,816
)
3,054
(10,850
)
Comprehensive income (loss)
attributable to Solo Brands, Inc.
$
3,749
$
(2,218
)
$
12,175
$
(16,245
)
Income (loss) per Class A common
stock
Basic
$
0.07
$
(0.03
)
$
0.20
$
(0.26
)
Diluted
$
0.07
$
(0.03
)
$
0.20
$
(0.26
)
Weighted-average Class A common stock
outstanding
Basic
57,883
$
63,470
61,370
$
63,429
Diluted
58,368
$
63,470
61,581
$
63,429
SOLO BRANDS, INC.
Consolidated Balance
Sheets
(Unaudited)
(In thousands)
September 30, 2023
December 31, 2022
ASSETS
Current assets
Cash and cash equivalents
$
16,551
$
23,293
Accounts receivable, net of allowance for
doubtful accounts of $2.2 million and $1.5 million
30,743
26,176
Inventory
114,077
132,990
Prepaid expenses and other current
assets
23,511
12,639
Total current assets
184,882
195,098
Non-current assets
Property and equipment, net
26,021
15,166
Intangible assets, net
240,697
234,632
Goodwill
405,206
382,658
Operating lease right-of-use assets
32,078
34,259
Other non-current assets
9,976
534
Total non-current assets
713,978
667,249
Total assets
$
898,860
$
862,347
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
11,528
$
11,783
Accrued expenses and other current
liabilities
42,219
43,377
Deferred revenue
3,970
6,848
Current portion of long-term debt
5,000
5,000
Total current liabilities
62,717
67,008
Non-current liabilities
Long-term debt, net
160,278
108,383
Deferred tax liability
51,359
82,621
Operating lease liabilities
25,722
29,133
Other non-current liabilities
13,224
205
Total non-current liabilities
250,583
220,342
Commitments and contingencies (Note
1)
Equity
Class A common stock, par value $0.001 per
share; 468,767,205 shares authorized, 57,751,375 shares issued and
outstanding; 475,000,000 shares authorized, 63,651,051 issued and
outstanding
58
64
Class B common stock, par value $0.001 per
share; 50,000,000 shares authorized, 32,832,755 shares issued and
outstanding; 50,000,000 shares authorized, 32,157,983 issued and
outstanding
33
32
Additional paid-in capital
352,758
358,118
Retained earnings (accumulated
deficit)
8,735
5,746
Accumulated other comprehensive income
(loss)
(741
)
(499
)
Treasury stock
(315
)
(35
)
Equity attributable to the controlling
interest
360,528
363,426
Equity attributable to noncontrolling
interests
225,032
211,571
Total equity
585,560
574,997
Total liabilities and equity
$
898,860
$
862,347
SOLO BRANDS, INC.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine Months Ended September
30,
(In thousands)
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)
$
15,530
$
(27,128
)
Adjustments to reconcile net income (loss)
to net cash (used in) provided by operating activities
Amortization of intangible assets
16,263
15,748
Equity-based compensation
14,714
13,213
Operating lease right-of-use assets
expense
6,061
4,891
Depreciation
3,862
2,446
Deferred income taxes
(10,924
)
(6,592
)
Changes in accounts receivable
reserves
1,312
1,262
Amortization of debt issuance costs
645
645
Loss on disposal of property and
equipment
186
(8
)
Impairment charges
—
30,589
Changes in assets and liabilities
Accounts receivable
(5,472
)
(2,003
)
Inventory
24,607
(64,244
)
Prepaid expenses and other current
assets
(10,838
)
(9,342
)
Accounts payable
(891
)
11,198
Accrued expenses and other current
liabilities
(5,370
)
(2,151
)
Deferred revenue
(2,878
)
(96
)
Operating lease ROU assets and
liabilities
(6,799
)
(3,989
)
Other non-current assets and
liabilities
(844
)
231
Net cash (used in) provided by
operating activities
39,164
(35,330
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures
(6,943
)
(7,512
)
Payments of contingent consideration
(9,386
)
—
Acquisitions, net of cash acquired
(34,620
)
(774
)
Net cash (used in) provided by
investing activities
(50,949
)
(8,286
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from long-term debt
60,000
45,000
Repayments of long-term debt
(8,750
)
(1,875
)
Common stock repurchases
(36,957
)
—
Distributions to non-controlling
interests
(8,944
)
(7,275
)
Stock issued under employee stock purchase
plan
106
246
Taxes paid related to net share settlement
of equity awards
(42
)
—
Net cash (used in) provided by
financing activities
5,413
36,096
Effect of exchange rate changes on
cash
(370
)
(403
)
Net change in cash and cash
equivalents
(6,742
)
(7,923
)
Cash and cash equivalents balance,
beginning of period
23,293
25,101
Cash and cash equivalents balance, end of
period
$
16,551
$
17,178
SUPPLEMENTAL NONCASH INVESTING AND
FINANCING DISCLOSURES:
Operating lease right of use assets
obtained in exchange for lease obligations
2,532
15,287
Financing lease right of use assets
obtained in exchange for lease obligations
899
—
Treasury stock retirements
31,164
—
Re-issuance of treasury stock
5,342
—
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP;
however, management believes that certain non-GAAP financial
measures provide users of our financial information with useful
supplemental information that enables a better comparison of our
performance across periods. We use adjusted gross profit, adjusted
gross profit margin, free cash flow, adjusted net income, adjusted
EPS, adjusted EBITDA and adjusted EBITDA margin non-GAAP financial
measures, because we believe they are useful indicators of our
operating performance. Our management uses these non-GAAP measures
principally as measures of our operating performance and believes
that these non-GAAP measures are useful to our investors because
they are frequently used by securities analysts, investors and
other interested parties in their evaluation of the operating
performance of companies in industries similar to ours. Our
management also uses these non-GAAP measures for planning purposes,
including the preparation of our annual operating budget and
financial projections.
None of these non-GAAP measures is a measurement of financial
performance under GAAP. These non-GAAP measures should not be
considered in isolation or as a substitute for a measure of our
liquidity or operating performance prepared in accordance with GAAP
and are not indicative of net income (loss) from continuing
operations as determined under U.S. GAAP. In addition, the
exclusion of certain gains or losses in the calculation of non-GAAP
financial measures should not be construed as an inference that
these items are unusual or infrequent as they may recur in the
future, nor should it be construed that our future results will be
unaffected by unusual or non-recurring items. These non-GAAP
financial measures have limitations that should be considered
before using these measures to evaluate our liquidity or financial
performance. Some of these limitations are as follows.
These non-GAAP measures exclude certain tax payments that may
require a reduction in cash available to us; do not reflect our
cash expenditures, or future requirements, for capital expenditures
(including capitalized software developmental costs) or contractual
commitments; do not reflect changes in, or cash requirements for,
our working capital needs; do not reflect the cash requirements
necessary to service interest or principal payments on our debt;
exclude certain purchase accounting adjustments related to
acquisitions; and exclude equity-based compensation expense, which
has recently been, and will continue to be for the foreseeable
future, a significant recurring expense for our business and an
important part of our compensation strategy.
In addition, other companies may define and calculate
similarly-titled non-GAAP financial measures differently than us,
thereby limiting the usefulness of these non-GAAP financial
measures as a comparative tool. Because of these and other
limitations, you should consider our non-GAAP measures only as
supplemental to other GAAP-based financial performance
measures.
Adjusted Gross Profit and Adjusted Gross Profit
Margin
We calculate adjusted gross profit as gross profit excluding the
recognition of the fair value write-ups of inventory as a result of
the Oru, ISLE, and Chubbies acquisitions. We calculate adjusted
gross profit margin as adjusted gross profit divided by net
sales.
Free Cash Flow
We calculate free cash flow as net cash provided by (used in)
operating activities, less capital expenditures.
Adjusted Net Income
We calculate adjusted net income as net income (loss) excluding
amortization of intangible assets; impairment charges; equity-based
compensation expense; the following costs that are expected to be
non-recurring in nature: tax refunds, transaction costs,
acquisition-related costs, implementation costs, management
transition costs, severance expense, inventory fair value
write-ups, business optimization expenses, business expansion
expenses, contract termination and modification fees, and changes
in fair value of contingent earn-out liability; and the tax impact
of these adjusting items.
Adjusted EPS
We calculate adjusted EPS as adjusted net income, as defined
above, less the allocable portion of net income (loss) to the
noncontrolling interest, divided by weighted average diluted shares
or weighted average shares, respectively, as calculated under U.S.
GAAP. While the net income is adjusted for the allocation of net
income (loss) to the noncontrolling interest, the adjusting items
noted above are added back in their entirety.
Adjusted EBITDA and Adjusted EBITDA Margin
We calculate adjusted EBITDA as net income (loss) before
interest expense, income taxes, and depreciation and amortization
expenses, impairment charges, equity-based compensation expense,
and the following costs that are expected to be non-recurring in
nature: tax refunds, transaction costs, acquisition-related costs,
implementation costs, management transition costs, severance
expense, inventory fair value write-ups, business optimization
expenses, business expansion expenses, contract termination and
modification fees, and changes in fair value of contingent earn-out
liability. We calculate adjusted EBITDA margin as adjusted EBITDA
divided by net sales.
SOLO BRANDS, INC.
Reconciliation of Non-GAAP
Financial Information to GAAP
(Unaudited) (In thousands
except per share amounts)
The following table reconciles
gross profit to adjusted gross profit for the periods
presented:
Three Months Ended September
30,
Nine Months Ended September
30,
(dollars in thousands)
2023
2022
2023
2022
Gross profit
$
68,259
$
64,680
$
205,733
$
200,209
Inventory fair value write-up(1)
—
—
—
7,813
Adjusted gross profit
$
68,259
$
64,680
$
205,733
$
208,022
Gross profit margin (Gross profit as a %
of net sales)
61.9
%
63.3
%
62.4
%
62.5
%
Adjusted gross profit margin (Adjusted
gross profit as a % of net sales)
61.9
%
63.3
%
62.4
%
64.9
%
(1)
Represents the fair market value
write-ups of inventory accounted for under ASC 805 related to the
2021 acquisitions.
The following table reconciles
net cash (used in) provided by operating activities to free cash
flow for the periods presented:
Nine Months Ended September
30,
(dollars in thousands)
2023
2022
Net cash (used in) provided by
operating activities
$
39,164
$
(35,330
)
Capital expenditures
(6,943
)
(7,512
)
Free cash flow
$
32,221
$
(42,842
)
The following tables reconcile
the non-GAAP financial measures to their most comparable GAAP
measure for the periods presented:
Three Months Ended September
30,
Nine Months Ended September
30,
(dollars in thousands)
2023
2022
2023
2022
Net income (loss)
$
3,083
$
(4,020
)
$
15,530
$
(27,128
)
Less: net income (loss) attributable to
noncontrolling interests
(1,045
)
(1,816
)
3,054
(10,850
)
Net income (loss) per Class A common
stock (GAAP)
$
4,128
$
(2,204
)
$
12,476
$
(16,278
)
Amortization expense
5,744
5,261
16,263
15,748
Impairment charges(1)
—
—
—
30,589
Equity-based compensation expense(2)
4,964
4,326
14,766
13,213
Tax refunds(3)
—
—
(5,121
)
—
Transaction costs(4)
213
849
1,494
1,070
Acquisition-related costs(5)
515
770
1,361
1,671
Implementation costs(6)
210
—
456
—
Management transition costs(7)
247
34
413
698
Severance expense
16
1,409
502
1,409
Inventory fair value write-ups(8)
—
—
—
7,813
Business optimization expense(9)
—
610
—
835
Business expansion expense(10)
—
225
—
373
Contract termination and modification
fees(13)
4,317
—
4,317
—
Changes in fair value of contingent
earn-out liability(14)
(2,242
)
—
(2,242
)
—
Tax impact of adjusting items(11)
(1,858
)
(1,887
)
(4,313
)
(10,311
)
Adjusted net income
$
15,209
$
7,577
$
43,426
$
35,980
Adjusted EPS(12)
$
0.28
$
0.15
$
0.66
$
0.74
(amounts per share)
Net income (loss)
$
0.05
$
(0.06
)
$
0.25
$
(0.43
)
Less: net income (loss) attributable to
noncontrolling interests
(0.02
)
(0.03
)
0.05
(0.17
)
Net income (loss) per Class A common
stock (GAAP)
$
0.07
$
(0.03
)
$
0.20
$
(0.26
)
Amortization expense
0.10
0.08
0.27
0.25
Impairment charges(1)
—
—
—
0.48
Equity-based compensation expense(2)
0.09
0.07
0.24
0.21
Tax refunds(3)
—
—
(0.08
)
—
Transaction costs(4)
—
0.01
0.02
0.02
Acquisition-related costs(5)
0.01
0.01
0.02
0.03
Implementation costs(6)
—
—
0.01
—
Management transition costs(7)
—
—
0.01
0.01
Severance expense
—
0.02
0.01
0.02
Inventory fair value write-ups(8)
—
—
—
0.12
Business optimization expense(9)
—
0.01
—
0.01
Business expansion expense(10)
—
0.01
—
0.01
Contract termination and modification
fees(13)
0.07
—
0.07
—
Changes in fair value of contingent
earn-out liability(14)
(0.04
)
—
(0.04
)
—
Tax impact of adjusting items(11)
(0.03
)
(0.03
)
(0.07
)
(0.16
)
Adjusted EPS(12)
$
0.28
$
0.15
$
0.66
$
0.74
Weighted-average Class A common stock
outstanding - basic
57,883
63,470
61,370
63,429
Weighted-average Class A common stock
outstanding - diluted
58,368
63,470
61,581
63,429
Net income (loss)
$
3,083
$
(4,020
)
$
15,530
$
(27,128
)
Interest expense
2,766
1,805
7,542
3,838
Income tax (benefit) expense
(6,191
)
(980
)
(3,272
)
(3,677
)
Depreciation and amortization expense
7,052
6,216
19,579
18,194
Impairment charges(1)
—
—
—
30,589
Equity-based compensation expense(2)
4,964
4,326
14,766
13,213
Tax refunds(3)
—
—
(5,121
)
—
Transaction costs(4)
213
849
1,494
1,070
Acquisition-related costs(5)
515
770
1,361
1,671
Implementation costs(6)
210
—
456
—
Management transition costs(7)
247
34
413
698
Severance expense
16
1,409
502
1,409
Inventory fair value write-ups(8)
—
—
—
7,813
Business optimization expense(9)
—
610
—
835
Business expansion expense(10)
—
225
—
373
Contract termination and modification
fees(13)
4,317
—
4,317
—
Changes in fair value of contingent
earn-out liability(14)
(2,242
)
—
(2,242
)
—
Adjusted EBITDA
$
14,950
$
11,244
$
55,325
$
48,898
Net income (loss) margin (Net income
(loss) as a % of net sales)
2.8
%
(3.9
)%
4.7
%
(8.5
)%
Adjusted EBITDA margin (Adjusted EBITDA as
a % of net sales)
13.6
%
11.0
%
16.8
%
15.3
%
(1)
Represents trademark and goodwill
impairments recorded during the three months ended June 30,
2022.
(2)
Represents employee compensation
expense associated with equity-based awards. This includes expense
associated with the incentive unit awards as well as awards issued
on and subsequent to the IPO including options, restricted stock
units and performance stock units.
(3)
Represents a one-time tax refund
related to COVID-19 era benefits.
(4)
Represents transaction costs
primarily related to professional service fees incurred in
connection with the secondary offering and S-3 registration
statement in the current periods and in connection with the IPO in
the comparative periods.
(5)
Represents expenses that are
associated with acquisition activities, including financial
diligence and legal fees.
(6)
Represents consulting fees
related to the Company’s preparation for compliance with Section
404(b) of the Sarbanes-Oxley Act and enterprise performance
management software implementation.
(7)
Represents costs primarily
related to recruiting senior level management
(8)
Represents the recognition of
fair market value write-ups of inventory accounted for under ASC
805 related to the 2021 acquisitions.
(9)
Represents various start-up and
transition costs, including warehouse optimization charges
associated with our new global headquarters infrastructure and with
new and expanded distribution facilities in Texas, Pennsylvania,
and the Netherlands.
(10)
Represents costs for expansion
into new international and domestic markets.
(11)
Represents the tax impact of
adjustments calculated at the federal statutory rate of 21% less
the portion of the tax impact of the adjustments attributable to
noncontrolling interests.
(12)
Adjusted earnings per share
(“Adjusted EPS”) is calculated independently for each component
and, as such, the total of such components may not sum to adjusted
EPS due to rounding.
(13)
Includes one-time advertising
spend contract termination fees with offsetting benefits expected
to be fully realized by the end of 2023.
(14)
Represents the charge to mark the
contingent earn-out consideration to fair value in connection with
the 2023 acquisitions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107814314/en/
Bruce Williams Investors@solobrands.com 332-242-4303
Solo Brands (NYSE:DTC)
過去 株価チャート
から 4 2024 まで 5 2024
Solo Brands (NYSE:DTC)
過去 株価チャート
から 5 2023 まで 5 2024