Savers Value Village, Inc. Reports First Quarter Financial Results and Acquisition of Thrift Store Chain with Seven Locations in Georgia
Savers Value Village, Inc. (NYSE: SVV) reported a 2.5% increase in net sales, with a 0.3% rise in comparable store sales. The company acquired a thrift store chain in Georgia, targeting a total of 29 net new stores in 2024. Adjusted net income increased by 32.3% to $13.9 million, and total active loyalty program members grew by 12.2% to 5.5 million. The company aims to strengthen its presence in the U.S. Southeast region and is optimistic about its fiscal 2024 outlook.
Net sales increased by 2.5%, reaching $354.2 million.
Adjusted net income rose by 32.3% to $13.9 million.
Total active loyalty program members increased by 12.2% to 5.5 million.
Net loss of $0.5 million was reported, or $0.00 per diluted share.
Adjusted EBITDA margin decreased by 10 basis points to 17.0%.
The macro environment in Canada is pressuring the lower income customer segment.
Insights
Sales increased
Comparable store sales increased
Entering the
Net store growth now targeted at 29 in 2024 with acquisition
Highlights for the First Quarter, Compared to the thirteen weeks ended April 1, 2023
-
Net sales increased
2.5% to .$354.2 million -
Comparable store sales increased
0.3% , withthe United States (“U.S.”) up2.3% andCanada down2.6% . -
Sales yield2 increased
1.4% to per pound.$1.41 -
The Company ended the first quarter with 326 stores, increasing its store count by
2.8% . -
Net loss of
, or$0.5 million per diluted share.$0.00 -
Adjusted net income1 increased
32.3% to and Adjusted net income per diluted share1 was$13.9 million .$0.08 -
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)1 increased
2.1% to , and Adjusted EBITDA margin1 decreased 10 basis points to$60.3 million 17.0% . Changes in foreign currency rates positively impacted Adjusted EBITDA1 by during the first quarter.$0.2 million -
Total active members enrolled in our
U.S. and Canadian loyalty programs increased12.2% to 5.5 million.
Mark Walsh, Chief Executive Officer, commented, “Our first quarter results were in line with our expectations and guidance. Demand trends in the
1 Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as well as amounts presented on a constant currency basis, are not measures recognized under 2 We define sales yield as retail sales generated per pound processed on a currency neutral and comparable store basis. |
Subsequent Events
Acquisition of Thrift Store Chain with Seven Locations in
On May 6, 2024, the Company acquired 2 Peaches Group, LLC (“2 Peaches”), a thrift store chain with seven locations in the
Michael Maher Named as Chief Financial Officer
In a separate press release dated May 9, 2024, the Company announced that Michael Maher has been appointed to the role of Chief Financial Officer (“CFO”), replacing current CFO, Jay Stasz, effective May 13, 2024. Mr. Maher will be based at the Company’s headquarters in
Mr. Maher is a seasoned finance leader, bringing to the Company over 25 years of experience in the retail and consumer sectors. Most recently, he served as Interim Chief Financial Officer at Nordstrom, Inc., where he spent over 13 years in various senior finance roles and was instrumental in guiding the company through periods of transformation. His extensive finance expertise includes all aspects of business development, financial planning, accounting, reporting, treasury, tax and investor relations. He holds a Bachelor of Arts in Business Economics from the University of
Fiscal 2024 Outlook
The Company’s updated outlook for the fifty-two weeks ended December 28, 2024 (“fiscal 2024”) is as follows:
- Store base increase of approximately 29, consisting of 22 new stores (unchanged) and 7 stores from our Two Peaches acquisition;
-
Total net sales of approximately from
to$1.57 (unchanged);$1.59 billion -
Comparable store sales growth of approximately from
2% to3% (unchanged); -
Net income of approximately
to$85 million (from$92 million previously);$78 million -
Adjusted net income1 of approximately
to$126 million (from$133 million previously);$123 million -
Adjusted EBITDA2 of approximately
to$330 million (from$340 million previously);$340 million -
Capital expenditures of approximately
to$105 (unchanged); and$115 million - Diluted weighted average common shares outstanding of approximately 171 million (from 172 million previously).
Included in the outlook figures contained above is contribution from the Company’s acquisition of 2 Peaches. The 2 Peaches acquisition closed on May 6, 2024 and will add seven stores to the
1 Adjusted net income is not a measure recognized under GAAP. For additional information on our use of non-GAAP financial measures, see “Non-GAAP Financial Measures” and the accompanying financial tables which reconcile GAAP financial measures to non-GAAP measures. 2 Adjusted EBITDA is not a measure recognized under GAAP. We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we cannot determine the probable significance of the various reconciling items, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly period to period. Accordingly, reconciliations to the corresponding GAAP financial measure are not available without unreasonable effort. |
Conference Call Information
A conference call to discuss the first quarter financial results is scheduled for today, May 9, 2024, at 4:30 p.m. ET.
Investors and analysts who wish to participate in the call are invited to dial +1 800 549 8228 (international callers, please dial +1 289 819 1520) approximately 10 minutes prior to the start of the call. Please reference Conference ID 87107 when prompted. A live webcast of the conference call will be available over the Internet, which you may access by logging on to the Investor Relations section on the Company’s website at https://ir.savers.com/events-and-presentations/default.aspx.
A recorded replay of the call will be available shortly after the conclusion of the call and remain available until May 23, 2024. To access the telephone replay, dial +1 888 660 6264 (international callers, please dial +1 289 819 1325). The access code for the replay is 87107#. A replay of the webcast will also be available within two hours of the conclusion of the call and will remain available on the website for one year.
About the Savers Value Village™ family of thrift stores
As the largest for-profit thrift operator in the
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
Non-GAAP Financial Measures
The Company reports its financial results in accordance with GAAP. Non-GAAP financial measures used by the Company include Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin. The Company has included these non-GAAP financial measures in this press release as they are key measures used by its management and its board of directors to evaluate its operating performance and the effectiveness of its business strategies, make budgeting decisions, and evaluate compensation decisions. Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. There are limitations to using non-GAAP financial measures, including those amounts presented in accordance with the Company’s definitions of Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as they may not be comparable to similar measures disclosed by its competitors, because not all companies and analysts calculate Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin in the same manner. Because of these limitations, you should consider Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including, as applicable, net income and the Company’s other GAAP results. The Company presents Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin because we consider these meaningful measures to share with investors because they best allow comparison of the performance of one period with that of another period. In addition, by presenting Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, we provide investors with management’s perspective of the Company’s operating performance.
Adjusted net income is defined as net loss excluding the impact of loss on extinguishment of debt, IPO-related stock-based compensation expense, transaction costs, dividend-related bonus, loss (gain) on foreign currency net, certain other adjustments, the tax effect on the above adjustments, and the excess tax benefit from stock option exercises. The Company defines Adjusted net income per diluted share as Adjusted net income divided by adjusted diluted weighted average common shares outstanding.
The Company defines Adjusted EBITDA as net loss excluding the impact of interest expense, net, income tax benefit, depreciation and amortization, loss on extinguishment of debt, stock-based compensation expense, non-cash occupancy-related costs, lease intangible asset expense, pre-opening expenses, store closing expenses, transaction costs, dividend-related bonus, loss (gain) on foreign currency, net and certain other adjustments. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage.
Constant Currency
The Company reports certain operating results on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. The term foreign currency exchange rates refers to the exchange rates used to translate the Company's operating results for all countries where the functional currency is not the
The Company believes disclosure of constant-currency net sales is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of its underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, constant-currency results are non-GAAP financial measures and are not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP. Constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. During the thirteen weeks ended March 30, 2024, as compared to the thirteen weeks ended April 1, 2023, the
SAVERS VALUE VILLAGE, INC.
Condensed Consolidated Balance Sheets (All amounts in thousands, except per share amounts, unaudited) |
|||||||
|
March 30, 2024 |
|
December 30, 2023 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
102,183 |
|
|
$ |
179,955 |
|
Trade receivables, net |
|
12,557 |
|
|
|
11,767 |
|
Inventories |
|
35,325 |
|
|
|
32,820 |
|
Prepaid expenses and other current assets |
|
31,911 |
|
|
|
25,691 |
|
Derivative assets – current |
|
36,133 |
|
|
|
7,691 |
|
Total current assets |
|
218,109 |
|
|
|
257,924 |
|
Property and equipment, net |
|
236,068 |
|
|
|
229,405 |
|
Right-of-use lease assets |
|
515,224 |
|
|
|
499,375 |
|
Goodwill |
|
681,520 |
|
|
|
687,368 |
|
Intangible assets, net |
|
163,977 |
|
|
|
166,681 |
|
Other assets |
|
3,057 |
|
|
|
3,133 |
|
Derivative assets – non-current |
|
— |
|
|
|
23,519 |
|
Total assets |
$ |
1,817,955 |
|
|
$ |
1,867,405 |
|
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
93,447 |
|
|
$ |
92,550 |
|
Accrued payroll and related taxes |
|
44,001 |
|
|
|
65,096 |
|
Lease liabilities – current |
|
77,829 |
|
|
|
79,306 |
|
Current portion of long-term debt and short-term borrowings |
|
6,000 |
|
|
|
4,500 |
|
Total current liabilities |
|
221,277 |
|
|
|
241,452 |
|
Long-term debt, net |
|
735,863 |
|
|
|
784,593 |
|
Lease liabilities – non-current |
|
438,994 |
|
|
|
419,407 |
|
Deferred tax liabilities, net |
|
6,954 |
|
|
|
27,909 |
|
Other liabilities |
|
19,910 |
|
|
|
17,989 |
|
Total liabilities |
|
1,422,998 |
|
|
|
1,491,350 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
615,196 |
|
|
|
593,109 |
|
Accumulated deficit |
|
(248,008 |
) |
|
|
(247,541 |
) |
Accumulated other comprehensive income |
|
27,769 |
|
|
|
30,487 |
|
Total stockholders’ equity |
|
394,957 |
|
|
|
376,055 |
|
Total liabilities and stockholders’ equity |
$ |
1,817,955 |
|
|
$ |
1,867,405 |
|
SAVERS VALUE VILLAGE, INC.
Condensed Consolidated Statements of Net Loss (All amounts in thousands, except per share amounts, unaudited) |
|||||||||||||
|
Thirteen Weeks Ended |
||||||||||||
|
March 30, 2024 |
|
April 1, 2023 |
||||||||||
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
||||||
Net sales |
$ |
354,172 |
|
|
100.0 |
% |
|
$ |
345,684 |
|
|
100.0 |
% |
Operating expenses: |
|
|
|
|
|
|
|
||||||
Cost of merchandise sold, exclusive of depreciation and amortization |
|
158,164 |
|
|
44.7 |
|
|
|
145,753 |
|
|
42.1 |
|
Salaries, wages and benefits |
|
83,697 |
|
|
23.6 |
|
|
|
92,632 |
|
|
26.8 |
|
Selling, general and administrative |
|
77,743 |
|
|
22.0 |
|
|
|
77,045 |
|
|
22.3 |
|
Depreciation and amortization |
|
18,301 |
|
|
5.1 |
|
|
|
14,484 |
|
|
4.2 |
|
Total operating expenses |
|
337,905 |
|
|
95.4 |
|
|
|
329,914 |
|
|
95.4 |
|
Operating income |
|
16,267 |
|
|
4.6 |
|
|
|
15,770 |
|
|
4.6 |
|
Other (expense) income |
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
(16,076 |
) |
|
(4.5 |
) |
|
|
(24,470 |
) |
|
(7.1 |
) |
(Loss) gain on foreign currency, net |
|
(956 |
) |
|
(0.3 |
) |
|
|
1,295 |
|
|
0.4 |
|
Other expense, net |
|
(106 |
) |
|
— |
|
|
|
(216 |
) |
|
(0.1 |
) |
Loss on extinguishment of debt |
|
(4,088 |
) |
|
(1.2 |
) |
|
|
(6,011 |
) |
|
(1.7 |
) |
Other expense, net |
|
(21,226 |
) |
|
(6.0 |
) |
|
|
(29,402 |
) |
|
(8.5 |
) |
Loss before income taxes |
|
(4,959 |
) |
|
(1.4 |
) |
|
|
(13,632 |
) |
|
(3.9 |
) |
Income tax benefit |
|
(4,492 |
) |
|
(1.3 |
) |
|
|
(3,437 |
) |
|
(1.0 |
) |
Net loss |
$ |
(467 |
) |
|
(0.1 |
)% |
|
$ |
(10,195 |
) |
|
(2.9 |
)% |
Net loss per share, basic |
$ |
(0.00 |
) |
|
|
|
$ |
(0.07 |
) |
|
|
||
Net loss per share, diluted |
$ |
(0.00 |
) |
|
|
|
$ |
(0.07 |
) |
|
|
||
Basic weighted average shares outstanding |
|
161,247 |
|
|
|
|
|
141,695 |
|
|
|
||
Diluted weighted average shares outstanding |
|
161,247 |
|
|
|
|
|
141,695 |
|
|
|
SAVERS VALUE VILLAGE, INC.
Condensed Consolidated Statements of Cash Flows (All amounts in thousands, unaudited) |
|||||||
|
Thirteen Weeks Ended |
||||||
|
March 30, 2024 |
|
April 1, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(467 |
) |
|
$ |
(10,195 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Stock-based compensation expense |
|
19,129 |
|
|
|
917 |
|
Amortization of debt issuance costs and debt discount |
|
1,401 |
|
|
|
1,466 |
|
Depreciation and amortization |
|
18,301 |
|
|
|
14,484 |
|
Operating lease expense |
|
31,450 |
|
|
|
29,392 |
|
Deferred income taxes, net |
|
(20,811 |
) |
|
|
(8,611 |
) |
Loss on extinguishment of debt |
|
4,088 |
|
|
|
6,011 |
|
Other items |
|
(1,991 |
) |
|
|
(3,905 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Trade receivables |
|
(683 |
) |
|
|
(1,043 |
) |
Inventories |
|
(2,590 |
) |
|
|
(3,328 |
) |
Prepaid expenses and other current assets |
|
(6,291 |
) |
|
|
(1,014 |
) |
Accounts payable and accrued liabilities |
|
1,234 |
|
|
|
2,351 |
|
Accrued payroll and related taxes |
|
(20,465 |
) |
|
|
(14,292 |
) |
Operating lease liabilities |
|
(29,283 |
) |
|
|
(27,830 |
) |
Other liabilities |
|
1,178 |
|
|
|
763 |
|
Net cash used in operating activities |
|
(5,800 |
) |
|
|
(14,834 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(22,494 |
) |
|
|
(20,799 |
) |
Settlement of derivative instruments, net |
|
(59 |
) |
|
|
(51 |
) |
Net cash used in investing activities |
|
(22,553 |
) |
|
|
(20,850 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net |
|
— |
|
|
|
529,247 |
|
Principal payments on long-term debt |
|
(51,000 |
) |
|
|
(235,463 |
) |
Payment of debt issuance costs |
|
(111 |
) |
|
|
(4,359 |
) |
Prepayment premium on extinguishment of debt |
|
(1,485 |
) |
|
|
— |
|
Advances on revolving line of credit |
|
— |
|
|
|
35,000 |
|
Repayments of revolving line of credit |
|
— |
|
|
|
(47,000 |
) |
Proceeds from stock option exercises |
|
2,958 |
|
|
|
— |
|
Dividends paid |
|
— |
|
|
|
(262,235 |
) |
Repurchase of shares and shares withheld to cover taxes |
|
— |
|
|
|
(345 |
) |
Settlement of derivative instrument, net |
|
2,362 |
|
|
|
1,785 |
|
Principal payments on finance lease liabilities |
|
(346 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(47,622 |
) |
|
|
16,630 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(1,797 |
) |
|
|
(124 |
) |
Net change in cash and cash equivalents |
|
(77,772 |
) |
|
|
(19,178 |
) |
Cash and cash equivalents at beginning of period |
|
179,955 |
|
|
|
112,132 |
|
Cash and cash equivalents at end of period |
$ |
102,183 |
|
|
$ |
92,954 |
|
SAVERS VALUE VILLAGE, INC.
|
Supplemental Detail on Net Loss Per Common Share Calculation |
(Unaudited) |
The following unaudited table sets forth the computation of net loss per basic and diluted share as shown on the face of the accompanying condensed consolidated statements of net loss:
|
Thirteen Weeks Ended |
||||||
(in thousands, except per share data) |
March 30, 2024 |
|
April 1, 2023 |
||||
Numerator |
|
|
|
||||
Net loss |
$ |
(467 |
) |
|
$ |
(10,195 |
) |
Denominator |
|
|
|
||||
Basic weighted average common shares outstanding |
|
161,247 |
|
|
|
141,695 |
|
Dilutive effect of employee stock options and awards |
|
— |
|
|
|
— |
|
Diluted weighted average common shares outstanding |
|
161,247 |
|
|
|
141,695 |
|
Net loss per share |
|
|
|
||||
Basic |
$ |
(0.00 |
) |
|
$ |
(0.07 |
) |
Diluted |
$ |
(0.00 |
) |
|
$ |
(0.07 |
) |
SAVERS VALUE VILLAGE, INC.
|
Supplemental Detail on Net Sales by Segment |
(Unaudited) |
The following unaudited table presents net sales by segment for the periods presented:
|
Thirteen Weeks Ended |
|
|
|
|
|||||||
(dollars in thousands) |
March 30, 2024 |
|
April 1, 2023 |
|
$ Change |
|
% Change |
|||||
|
$ |
192,580 |
|
$ |
184,021 |
|
$ |
8,559 |
|
|
4.7 |
% |
Canada Retail |
|
134,119 |
|
|
133,273 |
|
|
846 |
|
|
0.6 |
|
Other |
|
27,473 |
|
|
28,390 |
|
|
(917 |
) |
|
(3.2 |
) |
Total net sales |
$ |
354,172 |
|
$ |
345,684 |
|
$ |
8,488 |
|
|
2.5 |
% |
SAVERS VALUE VILLAGE, INC.
|
Supplemental Information |
Reconciliation of GAAP to Non-GAAP Financial Measures |
(Unaudited) |
The following information relates to non-GAAP financial measures and should be read in conjunction with the investor call held on May 9, 2024, discussing the Company’s financial condition and results of operations for the first quarter.
The following unaudited table presents a reconciliation of net loss and net loss per diluted share on a GAAP basis to Adjusted net income and Adjusted net income per diluted share for the periods presented:
|
Thirteen Weeks Ended |
||||||
(in thousands, except per share amounts) |
March 30, 2024 |
|
April 1, 2023 |
||||
Net loss: |
|
|
|
||||
Net loss |
$ |
(467 |
) |
|
$ |
(10,195 |
) |
Loss on extinguishment of debt(1)(2) |
|
4,088 |
|
|
|
6,011 |
|
IPO-related stock-based compensation expense(1)(3) |
|
17,993 |
|
|
|
— |
|
Transaction costs(1)(4) |
|
2,257 |
|
|
|
940 |
|
Dividend-related bonus(1)(5) |
|
— |
|
|
|
24,097 |
|
Loss (gain) on foreign currency, net(1) |
|
956 |
|
|
|
(1,295 |
) |
Other adjustments(1)(6) |
|
2 |
|
|
|
(634 |
) |
Tax effect on adjustments(7) |
|
(7,938 |
) |
|
|
(8,444 |
) |
Excess tax benefit from stock option exercises |
|
(3,028 |
) |
|
|
— |
|
Adjusted net income |
$ |
13,863 |
|
|
$ |
10,480 |
|
|
|
|
|
||||
Net loss per share - diluted(8): |
|
|
|
||||
Net loss per diluted share |
$ |
(0.00 |
) |
|
$ |
(0.07 |
) |
Loss on extinguishment of debt(1)(2) |
|
0.02 |
|
|
|
0.04 |
|
IPO-related stock-based compensation expense(1)(3) |
|
0.11 |
|
|
|
— |
|
Transaction costs(1)(4) |
|
0.01 |
|
|
|
0.01 |
|
Dividend-related bonus(1)(5) |
|
— |
|
|
|
0.16 |
|
Loss (gain) on foreign currency, net(1) |
|
0.01 |
|
|
|
(0.01 |
) |
Other adjustments(1)(6) |
|
— |
|
|
|
— |
|
Tax effect on adjustments(7) |
|
(0.05 |
) |
|
|
(0.06 |
) |
Excess tax benefit from stock option exercises |
|
(0.02 |
) |
|
— |
|
|
Adjusted net income per diluted share |
$ |
0.08 |
|
|
$ |
0.07 |
|
(1) |
Presented pre-tax. | |
(2) |
Removes the effects of the loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the Term Loan Facility on January 30, 2024, the partial redemption of our Senior Secured Notes on March 4, 2024, and the partial repayment of outstanding borrowings under the Term Loan Facility on February 6, 2023. | |
(3) |
Reflects stock-based compensation expense for performance-based options triggered by the completion of our IPO and expense related to restricted stock units issued in connection with the Company’s IPO. | |
(4) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. | |
(5) |
Represents dividend-related bonus and related payroll taxes paid in conjunction with our February 2023 dividend. | |
(6) |
The thirteen weeks ended April 1, 2023 includes legal settlement proceeds of |
|
(7) |
Tax effect on adjustments is calculated based on the forecasted effective tax rate for the fiscal year. | |
(8) |
For the thirteen weeks ended March 30, 2024 and April 1, 2023, Adjusted net income per diluted share includes 6,782 and 4,644 of potential shares of common stock, respectively, relating to awards of stock options and restricted stock units that were excluded from the calculation of GAAP diluted net loss per share as their inclusion would have had an antidilutive effect. |
A reconciliation of the Company’s fiscal 2024 outlook for net income on a GAAP basis to Adjusted net income is presented in the table below:
|
Fifty-Two Weeks Ended |
||||||
(in millions) |
December 28, 2024 |
||||||
|
Low End |
|
High End |
||||
Net income: |
|
|
|
||||
Net income |
$ |
85 |
|
|
$ |
92 |
|
Loss on extinguishment of debt(1)(2) |
|
4 |
|
|
|
4 |
|
IPO-related stock-based compensation expense(1)(3) |
|
56 |
|
|
|
56 |
|
Transaction costs(1)(4) |
|
2 |
|
|
|
2 |
|
Loss on foreign currency, net(1) |
|
2 |
|
|
|
2 |
|
Tax effect on adjustments |
|
(20 |
) |
|
|
(20 |
) |
Excess tax benefit from stock option exercises |
|
(3 |
) |
|
|
(3 |
) |
Adjusted net income |
$ |
126 |
|
|
$ |
133 |
|
(1) |
Presented pre-tax. | |
(2) |
Removes the effects of the loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the Term Loan Facility on January 30, 2024 and the partial redemption of our Senior Secured Notes on March 4, 2024, | |
(3) |
Reflects stock-based compensation expense for performance-based options triggered by the completion of our IPO and expense related to restricted stock units issued in connection with the Company’s IPO. | |
(4) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. |
The following unaudited table presents a reconciliation of GAAP net loss to Adjusted EBITDA for the periods presented:
|
Thirteen Weeks Ended |
||||||
|
March 30, 2024 |
April 1, 2023 |
|||||
(in thousands) |
|
|
|
||||
Net loss |
$ |
(467 |
) |
|
$ |
(10,195 |
) |
Interest expense, net |
|
16,076 |
|
|
|
24,470 |
|
Income tax benefit |
|
(4,492 |
) |
|
|
(3,437 |
) |
Depreciation and amortization |
|
18,301 |
|
|
|
14,484 |
|
Loss on extinguishment of debt(1) |
|
4,088 |
|
|
|
6,011 |
|
Stock-based compensation expense(2) |
|
19,129 |
|
|
|
917 |
|
Non-cash occupancy-related costs(3) |
|
1,993 |
|
|
|
697 |
|
Lease intangible asset expense(4) |
|
877 |
|
|
|
1,126 |
|
Pre-opening expenses(5) |
|
1,502 |
|
|
|
1,378 |
|
Store closing expenses(6) |
|
53 |
|
|
|
448 |
|
Transaction costs(7) |
|
2,257 |
|
|
|
940 |
|
Dividend-related bonus(8) |
|
— |
|
|
|
24,097 |
|
Loss (gain) on foreign currency, net |
|
956 |
|
|
|
(1,295 |
) |
Other adjustments(9) |
|
2 |
|
|
|
(634 |
) |
Adjusted EBITDA |
$ |
60,275 |
|
|
$ |
59,007 |
|
Net loss margin |
|
(0.1 |
)% |
|
|
(2.9 |
)% |
Adjusted EBITDA margin |
|
17.0 |
% |
|
|
17.1 |
% |
(1) |
Removes the effects of the loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the Term Loan Facility on January 30, 2024, the partial redemption of our Senior Secured Notes on March 4, 2024, and the partial repayment of outstanding borrowings under the Term Loan Facility on February 6, 2023. | |
(2) |
Represents non-cash stock-based compensation expense related to stock options and restricted stock units granted to certain of our employees and directors. | |
(3) |
Represents the difference between cash and straight-line lease expense. | |
(4) |
Represents lease expense associated with acquired lease intangibles. Prior to the adoption of Topic 842, this expense was included within depreciation and amortization. | |
(5) |
Pre-opening expenses include expenses incurred in the preparation and opening of new stores and processing locations, such as payroll, training, travel, occupancy and supplies. | |
(6) |
Costs associated with the closing of certain retail locations, including lease termination costs, amounts paid to third parties for rent reduction negotiations, and fees paid to landlords for store closings. | |
(7) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. | |
(8) |
Represents dividend-related bonus and related taxes paid in conjunction with our February 2023 dividend. | |
(9) |
The thirteen weeks ended April 1, 2023 includes legal settlement proceeds of |
Constant-currency
The Company calculates constant-currency net sales by translating current-period net sales using the average exchange rates from the comparative prior period rather than the actual average exchange rates in effect. The Company’s constant-currency net sales is not a financial measure prepared in accordance with GAAP.
The following unaudited table presents a reconciliation of GAAP net sales to constant-currency net sales for the periods presented:
|
Thirteen Weeks Ended |
|
|
|
|
||||||||
(dollars in thousands) |
March 30, 2024 |
|
April 1, 2023 |
|
$ Change |
|
% Change |
||||||
Net sales |
$ |
354,172 |
|
|
$ |
345,684 |
|
$ |
8,488 |
|
|
|
|
Impact of foreign currency |
|
(20 |
) |
|
|
n/a |
|
|
(20 |
) |
|
n/m |
|
Constant-currency net sales |
$ |
354,152 |
|
|
$ |
345,684 |
|
$ |
8,468 |
|
|
|
n/a - not applicable n/m - not meaningful |
Supplemental Metrics
We use the supplemental metrics below to evaluate the performance of our business, identify trends, formulate financial projections and make strategic decisions. The Company believes that these metrics provide useful information to investors and others in understanding and evaluating its results of operations in the same manner as its management team.
The following unaudited table summarizes certain supplemental metrics for the periods presented:
|
Thirteen Weeks Ended |
||||||
|
March 30, 2024 |
|
April 1, 2023 |
||||
Comparable Store Sales Growth (1) |
|
|
|
||||
|
|
2.3 |
% |
|
|
5.6 |
% |
|
|
(2.6 |
)% |
|
|
9.0 |
% |
Total (2) |
|
0.3 |
% |
|
|
7.2 |
% |
Number of Stores |
|
|
|
||||
|
|
155 |
|
|
|
152 |
|
|
|
159 |
|
|
|
153 |
|
Total (2) |
|
326 |
|
|
|
317 |
|
Processed Supply Volume (lbs mm) |
|
238 |
|
|
|
240 |
|
Sales Yield (3) |
|
|
|
|
|
(1) |
Comparable store sales growth is the percentage change in comparable store sales over the comparable period in the prior fiscal year. We define comparable store sales to be sales by stores that have been in operation for all or a portion of two consecutive fiscal years, or, in other words, stores that are starting their third fiscal year of operation. In fiscal year 2023, comparable store sales growth excludes stores acquired in the 2nd Ave. Acquisition because those stores were not yet fully integrated during the prior year. | |
(2) |
Total comparable store sales growth and total number of stores include our |
|
(3) |
We define sales yield as retail sales generated per pound processed on a currency neutral and comparable store basis. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509624482/en/
Investor Contact:
John Rouleau/Lyn Walther
ICR, Inc.
Investors@savers.com
Media Contact:
Edelman Smithfield | 713.299.4115 | Savers@edelman.com
Savers | 206.228.2261 | sgaugl@savers.com
Source: Savers Value Village, Inc.
FAQ
<p>What is the stock symbol for Savers Value Village, Inc.?</p>
The stock symbol for Savers Value Village, Inc. is SVV.
<p>How many stores did the company end the first quarter with?</p>
The company ended the first quarter with 326 stores.
<p>What was the net loss reported for the first quarter?</p>
The net loss reported was $0.5 million, or $0.00 per diluted share.
<p>Who was appointed as the new Chief Financial Officer?</p>
Michael Maher was appointed as the new Chief Financial Officer, replacing Jay Stasz.
<p>What is the company's outlook for fiscal 2024?</p>
The company's outlook for fiscal 2024 includes a store base increase of approximately 29, with total net sales ranging from $1.57 to $1.59 billion.