CAS Investment Partners Urges At Home to Pre-Release Sales Results for Second Quarter of Fiscal Year 2022 Ahead of Upcoming Tender Deadline

Rhea-AI Summary

CAS Investment Partners, which owns approximately 17% of At Home Group's common stock, is urging the company to disclose its interim sales results for Q2 FY2022. The firm believes the lack of transparency undermines shareholder interests, especially as a $37 per share tender offer from Hellman & Friedman approaches. CAS claims that the company’s same-store sales are approximately 30% above 2019 levels, indicating strong momentum post-pandemic. They express concern over potential governance issues and compensation incentives for CEO Lee Bird if the deal proceeds.

Positive

• Same-store sales trending approximately 30% above 2019 levels, indicating strong sales momentum.
• CAS's significant ownership stake (17%) shows investor confidence.

Negative

• Calls for more transparency may indicate governance issues within At Home.
• Concerns raised over CEO Lee Bird receiving over $100 million in compensation if the transaction closes.

CAS Investment Partners, LLC (together with its affiliates, “CAS” or “we”), which beneficially owns approximately 17% of the outstanding common stock of At Home Group Inc. (NYSE: HOME) (“At Home” or the “Company”), today called on the Company to release its interim sales results for the second quarter of fiscal year 2022 in order to provide material information and keep stockholders properly informed as they consider the $37 per share tender offer made by funds advised by Hellman & Friedman LLC (collectively, “H&F”). As previously disclosed, CAS deems the $37 per share tender offer wholly inadequate and opposes the transaction on its current terms. Learn more at www.ProtectAtHome.com.

Clifford A. Sosin, Founder and Portfolio Manager of CAS, commented:

“We urge At Home to promptly release interim sales results for the second quarter of fiscal year 2022. Rather than keep stockholders in the dark about the Company’s continued momentum, we believe At Home should be providing them with as much information as possible. Stockholders should not be asked to make a decision about whether to tender into the meager H&F offer without first receiving an easily-prepared update on the current quarter. It is not as if At Home has not pre-released sales data in the past. Stockholders should seriously question why the Company is not releasing this important information at a time when we need it the most?

According to credit card data analyzed by CAS, the Company’s second quarter same store sales are trending approximately 30% above 2019 levels. Sales appear to be remaining very strong even as the economy reopens and the impact of federal stimulus fades. We contend that this information demonstrates the Company’s recent success is durable and not a temporary byproduct of the pandemic.

It appears to us that At Home and H&F are desperately trying to avoid releasing these numbers, as evidenced by the fact that the tender deadline ends five days before the close of the second quarter on July 20^th. We are concerned that this is due to Chairman and Chief Executive Officer Lee Bird being set up to make more than $100 million in compensation if the proposed transaction is completed. We are equally concerned that H&F may already be exerting an inappropriate level of influence over the corporate governance decisions at the Company.

Given we are At Home’s largest stockholder, we call on the Company to immediately respond to our request to disclose this material information and remind the independent directors of their fiduciary duties to At Home stockholders.”

About CAS Investment Partners, LLC

CAS Investment Partners, LLC is a value-focused investment management firm with offices in New York City and Connecticut. The firm was founded in 2012 by Clifford A. Sosin.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210629005427/en/

FAQ

What are the recent sales trends for At Home Group (HOME)?

At Home Group's same-store sales are trending approximately 30% above 2019 levels, indicating strong performance.

What is CAS Investment Partners' position on the H&F tender offer for At Home Group (HOME)?

CAS Investment Partners deems the $37 per share tender offer inadequate and opposes the transaction.

Why is CAS calling for At Home Group (HOME) to release its interim sales results?

CAS believes shareholders need this information to make informed decisions regarding the tender offer by Hellman & Friedman.

What concerns does CAS have regarding At Home Group's management and governance?

CAS expresses concerns over potential governance issues and the significant compensation package for CEO Lee Bird if the tender offer is accepted.