Savers Value Village, Inc. Reports Second Quarter Financial Results
Savers Value Village (NYSE: SVV) reported Q2 financial results for the quarter ended June 29, 2024. Net sales rose 2.0% to $386.7 million, with U.S. sales up 5.4% but Canadian sales down 2.4%. Comparable store sales remained flat overall, with a 2.1% increase in the U.S., but a 3.1% decrease in Canada.
The company opened four new stores and acquired seven, totaling 337 stores. Net income stood at $9.7 million, while Adjusted Net Income was $23.7 million. Adjusted EBITDA reached $80.0 million, with a 20.7% margin.
SVV's FY 2024 outlook was revised: net sales now expected at $1.53-$1.56 billion, down from $1.57-$1.59 billion. Comparable store sales forecast revised to -1% to 1%, and net income guidance dropped to $42-$56 million from $85-$92 million. Additionally, the company repurchased 1.4 million shares of common stock at an average price of $10.51 per share.
Savers Value Village (NYSE: SVV) ha riportato i risultati finanziari del secondo trimestre per il periodo conclusosi il 29 giugno 2024. Le vendite nette sono aumentate del 2,0% a $386,7 milioni, con vendite negli Stati Uniti in aumento del 5,4% ma vendite in Canada in calo del 2,4%. Le vendite dei negozi comparabili sono rimaste complessivamente stabili, con un aumento del 2,1% negli Stati Uniti, ma una diminuzione del 3,1% in Canada.
L'azienda ha aperto quattro nuovi negozi e acquisito sette, portando il totale a 337 negozi. L'utile netto si è attestato a $9,7 milioni, mentre l'utile netto rettificato era di $23,7 milioni. L'EBITDA rettificato ha raggiunto $80,0 milioni, con un margine del 20,7%.
Le previsioni per l'intero esercizio 2024 di SVV sono state riviste: le vendite nette sono ora attese tra $1,53 e $1,56 miliardi, in calo rispetto alle precedenti stime di $1,57-$1,59 miliardi. Le previsioni sulle vendite dei negozi comparabili sono state riviste a una fluttuazione tra -1% e 1%, e le stime sui guadagni netti sono diminuite a $42-$56 milioni, rispetto ai precedenti $85-$92 milioni. Inoltre, l'azienda ha riacquistato 1,4 milioni di azioni ordinarie a un prezzo medio di $10,51 per azione.
Savers Value Village (NYSE: SVV) informó sobre los resultados financieros del segundo trimestre para el periodo que terminó el 29 de junio de 2024. Las ventas netas aumentaron un 2,0% a $386,7 millones, con un aumento del 5,4% en las ventas en EE. UU., pero una disminución del 2,4% en Canadá. Las ventas de tiendas comparables se mantuvieron estables en general, con un incremento del 2,1% en EE. UU., pero una disminución del 3,1% en Canadá.
La empresa abrió cuatro nuevas tiendas y adquirió siete, alcanzando un total de 337 tiendas. La renta neta se situó en $9,7 millones, mientras que la renta neta ajustada fue de $23,7 millones. El EBITDA ajustado alcanzó los $80,0 millones, con un margen del 20,7%.
Las proyecciones de SVV para el año fiscal 2024 fueron revisadas: se esperan ventas netas de entre $1,53 y $1,56 mil millones, en comparación con los $1,57-$1,59 mil millones anteriores. La proyección de ventas de tiendas comparables se revisó a un rango entre -1% y 1%, y la guía de utilidad neta se redujo a $42-$56 millones desde los $85-$92 millones anteriores. Además, la compañía recompró 1,4 millones de acciones ordinarias a un precio promedio de $10,51 por acción.
Savers Value Village (NYSE: SVV)는 2024년 6월 29일로 종료된 분기의 2분기 재무 결과를 보고했습니다. 순매출은 2.0% 증가하여 3억 8,670만 달러에 달했으며, 미국 판매는 5.4% 증가했지만 캐나다 판매는 2.4% 감소했습니다. 동일 상점 매출은 전체적으로 평탄하게 유지되었으며, 미국에서는 2.1% 증가했지만 캐나다에서는 3.1% 감소했습니다.
회사는 4개의 신규 매장을 열고 7개를 인수하여 총 337개의 매장을 운영하고 있습니다. 순이익은 970만 달러에 달했으며, 조정 순이익은 2,370만 달러였습니다. 조정 EBITDA는 8,000만 달러에 도달했으며, 마진은 20.7%였습니다.
SVV의 2024 회계연도 전망이 수정되었습니다: 현재 순매출은 15억 3천만 달러에서 15억 6천만 달러로 예상되며, 이전의 15억 7천만 달러에서 15억 9천만 달러에서 하향 조정되었습니다. 동일 상점 매출 전망은 -1%에서 1%로 수정되었고, 순이익 가이던스는 4,200만 달러에서 5,600만 달러로 감소했으며, 이전에는 8,500만 달러에서 9,200만 달러로 안내되었습니다. 또한, 회사는 평균 주당 가격 10.51달러로 140만 주의 보통 주식을 재매입했습니다.
Savers Value Village (NYSE: SVV) a présenté les résultats financiers du deuxième trimestre pour la période se terminant le 29 juin 2024. Les ventes nettes ont augmenté de 2,0 % pour atteindre 386,7 millions de dollars, avec une hausse de 5,4 % des ventes aux États-Unis, mais une baisse de 2,4 % au Canada. Les ventes des magasins comparables sont restées globalement stables, avec une augmentation de 2,1 % aux États-Unis et une diminution de 3,1 % au Canada.
L'entreprise a ouvert quatre nouveaux magasins et acquis sept, portant le total à 337 magasins. Le bénéfice net s'est élevé à 9,7 millions de dollars, tandis que le bénéfice net ajusté était de 23,7 millions de dollars. L'EBITDA ajusté a atteint 80,0 millions de dollars, avec une marge de 20,7 %.
Les prévisions de SVV pour l'exercice 2024 ont été révisées : les ventes nettes sont désormais attendues entre 1,53 et 1,56 milliard de dollars, contre une prévision précédente de 1,57 à 1,59 milliard de dollars. Les prévisions de ventes des magasins comparables ont été révisées à -1 % à 1 %, et les prévisions de bénéfice net ont été abaissées à 42-56 millions de dollars, contre 85-92 millions de dollars auparavant. En outre, l'entreprise a racheté 1,4 million d'actions ordinaires à un prix moyen de 10,51 dollars par action.
Savers Value Village (NYSE: SVV) hat die finanziellen Ergebnisse für das zweite Quartal für den Zeitraum bis zum 29. Juni 2024 veröffentlicht. Der Nettoumsatz stieg um 2,0% auf 386,7 Millionen Dollar, wobei die Umsätze in den USA um 5,4% und die Umsätze in Kanada um 2,4% zurückgingen. Die vergleichbaren Umsätze blieben insgesamt stabil, mit einem Anstieg von 2,1% in den USA, aber einem Rückgang von 3,1% in Kanada.
Das Unternehmen eröffnete vier neue Filialen und erwarb sieben, womit die Gesamtzahl auf 337 Filialen anstieg. Der Nettogewinn lag bei 9,7 Millionen Dollar, während der bereinigte Nettogewinn 23,7 Millionen Dollar betrug. Das bereinigte EBITDA erreichte 80,0 Millionen Dollar, mit einer Marge von 20,7%.
Die Prognose für das Geschäftsjahr 2024 von SVV wurde überarbeitet: Der Nettoumsatz wird nun auf 1,53-1,56 Milliarden Dollar geschätzt, das vorherige Schätzintervall lag bei 1,57-1,59 Milliarden Dollar. Die Prognose für die vergleichbaren Verkaufszahlen wurde auf -1% bis 1% nach unten korrigiert, und die Nettogewinnprognose fiel von 85-92 Millionen Dollar auf 42-56 Millionen Dollar. Darüber hinaus hat das Unternehmen 1,4 Millionen Stammaktien zu einem durchschnittlichen Preis von 10,51 Dollar pro Aktie zurückgekauft.
- Net sales increased by 2.0% to $386.7 million.
- U.S. sales grew by 5.4%.
- Opened four new stores and acquired seven, totaling 337 stores.
- Adjusted EBITDA was $80.0 million with a 20.7% margin.
- Loyalty program membership increased by 11.8% to 5.7 million.
- Repurchased 1.4 million shares at an average price of $10.51 per share.
- Canadian sales declined by 2.4%.
- Comparable store sales in Canada decreased by 3.1%.
- Net income guidance for FY 2024 reduced to $42-$56 million from $85-$92 million.
- Updated net sales outlook for FY 2024 to $1.53-$1.56 billion, down from $1.57-$1.59 billion.
- Revised comparable store sales forecast to -1% to 1% from 2% to 3%.
Insights
Savers Value Village's Q2 results show a mixed performance. While overall net sales increased by
The company's expansion strategy is progressing well, with 4 new stores opened organically and 7 acquired. However, the lowered fiscal 2024 outlook is concerning. The revised net sales forecast of
The share repurchase program, with
Savers Value Village's Q2 results highlight the diverging trends in the U.S. and Canadian thrift markets. The U.S. segment's
The company's loyalty program growth is impressive, with an
The thrift industry's resilience during economic downturns is being tested, particularly in Canada. Savers Value Village's performance in the coming quarters will be important in assessing whether this is a temporary setback or a longer-term trend in the secondhand retail market.
Savers Value Village's Q2 results and revised outlook reveal a strategic inflection point. The company's expansion plans remain robust, with 29 new stores planned for 2024, including the 7 acquired from 2 Peaches. This aggressive growth strategy, particularly in the stronger U.S. market, could help offset challenges in Canada.
The focus on improving offsite processing facilities' productivity is important for maintaining margins as the company scales. However, the significant downward revision in net income forecast (from
The company's commitment to its mission of making "secondhand second nature" aligns well with growing consumer interest in sustainability. However, execution in the face of economic challenges will be key. The management's ability to adapt its strategy, particularly in Canada, will be critical for long-term success.
Net sales increased
Total comparable store sales flat, up
Opened four new stores, acquired seven and remain on track for 29 new stores in 2024
Highlights for the Second Quarter, Compared to the thirteen weeks ended July 1, 2023
-
Net sales increased
2.0% to , with$386.7 million the United States (“U.S.”) up5.4% andCanada down2.4% . Constant currency net sales1 increased2.8% to .$389.7 million -
Comparable store sales decreased
0.1% , with theU.S. increasing2.1% andCanada decreasing3.1% . - During the second quarter, the Company opened four new stores and also added seven stores through the acquisition of 2 Peaches Group, LLC (“2 Peaches”), ending the second quarter with 337 stores.
-
Net income and Adjusted net income1 were
and$9.7 million , respectively. Net income per diluted share and Adjusted net income per diluted share1 were$23.7 million and$0.06 , respectively. Net income margin was$0.14 2.5% . -
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA1”) was
and Adjusted EBITDA margin1 was$80.0 million 20.7% . Changes in foreign currency rates negatively impacted Adjusted EBITDA1 by during the second quarter.$0.8 million -
Total active members enrolled in our
U.S. and Canadian loyalty programs increased11.8% to 5.7 million.
Mark Walsh, Chief Executive Officer of Savers Value Village, Inc. stated, “Our second quarter results reflect another period of top line and new store growth for Savers Value Village. We experienced solid traffic and sales growth in the
Mr. Walsh continued, “Despite the strength in our
Also during the quarter, the Company repurchased approximately 288 thousand shares of its common stock at a weighted average price of
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 |
Fiscal 2024 Outlook
The Company’s updated outlook for the fifty-two weeks ending December 28, 2024 (“fiscal 2024”) is as follows:
- Total of 29 new stores, consisting of 22 organic new store openings (unchanged) and 7 stores from our 2 Peaches acquisition (unchanged);
-
Total net sales of approximately
to$1.53 billion (from$1.56 billion to$1.57 billion previously);$1.59 billion -
Comparable store sales of approximately -
1% to1% (from2% to3% previously); -
Net income of approximately
to$42 million (from$56 million to$85 million previously);$92 million -
Adjusted net income1 of approximately
to$82 million (from$96 million to$126 million previously);$133 million -
Adjusted EBITDA2 of approximately
to$290 million (from$310 million to$330 million previously);$340 million -
Capital expenditures of approximately
to$105 million (unchanged); and$115 million - Diluted weighted average common shares outstanding of approximately 168 million (from 171 million previously).
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 second quarter financial results is scheduled for today, August 8, 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 86270 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 August 22, 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 86270#. 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 income 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, executive transition costs, certain other adjustments, the tax effect on the above adjustments, and the excess tax shortfall (benefit) from stock-based compensation. The Company defines Adjusted net income per diluted share as Adjusted net income divided by diluted weighted average common shares outstanding.
The Company defines Adjusted EBITDA as net income excluding the impact of interest expense, net, income tax expense, 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, executive transition costs, 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 and twenty-six weeks ended June 29, 2024, as compared to the thirteen and twenty-six weeks ended July 1, 2023, the
SAVERS VALUE VILLAGE, INC.
|
|||||||||||||||||||||||||||
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
||||||||||||||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||||||||||
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
||||||||||||
Net sales |
$ |
386,663 |
|
|
100.0 |
% |
|
$ |
379,102 |
|
|
100.0 |
% |
|
$ |
740,835 |
|
|
100.0 |
% |
|
$ |
724,786 |
|
|
100.0 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of merchandise sold, exclusive of depreciation and amortization |
|
162,626 |
|
|
42.1 |
|
|
|
154,945 |
|
|
40.9 |
|
|
|
320,790 |
|
|
43.3 |
|
|
|
300,698 |
|
|
41.5 |
|
Salaries, wages and benefits |
|
90,955 |
|
|
23.5 |
|
|
|
67,342 |
|
|
17.7 |
|
|
|
174,652 |
|
|
23.6 |
|
|
|
159,974 |
|
|
22.1 |
|
Selling, general and administrative |
|
83,486 |
|
|
21.6 |
|
|
|
73,259 |
|
|
19.3 |
|
|
|
161,229 |
|
|
21.8 |
|
|
|
150,304 |
|
|
20.7 |
|
Depreciation and amortization |
|
17,380 |
|
|
4.5 |
|
|
|
14,693 |
|
|
3.9 |
|
|
|
35,681 |
|
|
4.8 |
|
|
|
29,177 |
|
|
4.0 |
|
Total operating expenses |
|
354,447 |
|
|
91.7 |
|
|
|
310,239 |
|
|
81.8 |
|
|
|
692,352 |
|
|
93.5 |
|
|
|
640,153 |
|
|
88.3 |
|
Operating income |
|
32,216 |
|
|
8.3 |
|
|
|
68,863 |
|
|
18.2 |
|
|
|
48,483 |
|
|
6.5 |
|
|
|
84,633 |
|
|
11.7 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net |
|
(15,767 |
) |
|
(4.1 |
) |
|
|
(27,734 |
) |
|
(7.3 |
) |
|
|
(31,843 |
) |
|
(4.3 |
) |
|
|
(52,204 |
) |
|
(7.2 |
) |
(Loss) gain on foreign currency, net |
|
(940 |
) |
|
(0.2 |
) |
|
|
4,487 |
|
|
1.1 |
|
|
|
(1,896 |
) |
|
(0.3 |
) |
|
|
5,782 |
|
|
0.8 |
|
Other income, net |
|
496 |
|
|
0.1 |
|
|
|
434 |
|
|
0.1 |
|
|
|
390 |
|
|
0.1 |
|
|
|
218 |
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4,088 |
) |
|
(0.5 |
) |
|
|
(6,011 |
) |
|
(0.8 |
) |
Other expense, net |
|
(16,211 |
) |
|
(4.2 |
) |
|
|
(22,813 |
) |
|
(6.1 |
) |
|
|
(37,437 |
) |
|
(5.0 |
) |
|
|
(52,215 |
) |
|
(7.2 |
) |
Income before income taxes |
|
16,005 |
|
|
4.1 |
|
|
|
46,050 |
|
|
12.1 |
|
|
|
11,046 |
|
|
1.5 |
|
|
|
32,418 |
|
|
4.5 |
|
Income tax expense |
|
6,293 |
|
|
1.6 |
|
|
|
11,000 |
|
|
2.9 |
|
|
|
1,801 |
|
|
0.3 |
|
|
|
7,563 |
|
|
1.1 |
|
Net income |
$ |
9,712 |
|
|
2.5 |
% |
|
$ |
35,050 |
|
|
9.2 |
% |
|
$ |
9,245 |
|
|
1.2 |
% |
|
$ |
24,855 |
|
|
3.4 |
% |
Net income per share, basic |
$ |
0.06 |
|
|
|
|
$ |
0.25 |
|
|
|
|
$ |
0.06 |
|
|
|
|
$ |
0.18 |
|
|
|
||||
Net income per share, diluted |
$ |
0.06 |
|
|
|
|
$ |
0.24 |
|
|
|
|
$ |
0.06 |
|
|
|
|
$ |
0.17 |
|
|
|
||||
Basic weighted average shares outstanding |
|
161,788 |
|
|
|
|
|
141,712 |
|
|
|
|
|
161,518 |
|
|
|
|
|
141,705 |
|
|
|
||||
Diluted weighted average shares outstanding |
|
168,010 |
|
|
|
|
|
146,174 |
|
|
|
|
|
168,020 |
|
|
|
|
|
146,258 |
|
|
|
||||
SAVERS VALUE VILLAGE, INC.
|
|||||||
|
June 29, 2024 |
|
December 30, 2023 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
160,651 |
|
|
$ |
179,955 |
|
Trade receivables, net |
|
13,674 |
|
|
|
11,767 |
|
Inventories |
|
37,549 |
|
|
|
32,820 |
|
Prepaid expenses and other current assets |
|
38,325 |
|
|
|
25,691 |
|
Derivative assets – current |
|
52 |
|
|
|
7,691 |
|
Total current assets |
|
250,251 |
|
|
|
257,924 |
|
Property and equipment, net |
|
251,719 |
|
|
|
229,405 |
|
Right-of-use lease assets |
|
539,624 |
|
|
|
499,375 |
|
Goodwill |
|
678,895 |
|
|
|
687,368 |
|
Intangible assets, net |
|
165,045 |
|
|
|
166,681 |
|
Other assets |
|
3,876 |
|
|
|
3,133 |
|
Derivative assets – non-current |
|
— |
|
|
|
23,519 |
|
Total assets |
$ |
1,889,410 |
|
|
$ |
1,867,405 |
|
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
106,092 |
|
|
$ |
92,550 |
|
Accrued payroll and related taxes |
|
50,150 |
|
|
|
65,096 |
|
Lease liabilities – current |
|
80,899 |
|
|
|
79,306 |
|
Current portion of long-term debt |
|
6,000 |
|
|
|
4,500 |
|
Total current liabilities |
|
243,141 |
|
|
|
241,452 |
|
Long-term debt, net |
|
735,593 |
|
|
|
784,593 |
|
Lease liabilities – non-current |
|
460,038 |
|
|
|
419,407 |
|
Deferred tax liabilities, net |
|
7,314 |
|
|
|
27,909 |
|
Other liabilities |
|
23,869 |
|
|
|
17,989 |
|
Total liabilities |
|
1,469,955 |
|
|
|
1,491,350 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
636,494 |
|
|
|
593,109 |
|
Accumulated deficit |
|
(241,612 |
) |
|
|
(247,541 |
) |
Accumulated other comprehensive income |
|
24,573 |
|
|
|
30,487 |
|
Total stockholders’ equity |
|
419,455 |
|
|
|
376,055 |
|
Total liabilities and stockholders’ equity |
$ |
1,889,410 |
|
|
$ |
1,867,405 |
|
SAVERS VALUE VILLAGE, INC.
|
|||||||
|
Twenty-Six Weeks Ended |
||||||
|
June 29, 2024 |
|
July 1, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
9,245 |
|
|
$ |
24,855 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Stock-based compensation expense |
|
40,779 |
|
|
|
1,857 |
|
Amortization of debt issuance costs and debt discount |
|
2,755 |
|
|
|
3,223 |
|
Depreciation and amortization |
|
35,681 |
|
|
|
29,177 |
|
Operating lease expense |
|
63,593 |
|
|
|
58,275 |
|
Deferred income taxes, net |
|
(20,631 |
) |
|
|
5,290 |
|
Loss on extinguishment of debt |
|
4,088 |
|
|
|
6,011 |
|
Other items |
|
(3,931 |
) |
|
|
(10,800 |
) |
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Trade receivables |
|
(1,838 |
) |
|
|
(596 |
) |
Inventories |
|
(4,315 |
) |
|
|
(8,291 |
) |
Prepaid expenses and other current assets |
|
(12,270 |
) |
|
|
(19,466 |
) |
Accounts payable and accrued liabilities |
|
14,197 |
|
|
|
24,727 |
|
Accrued payroll and related taxes |
|
(14,658 |
) |
|
|
(6,898 |
) |
Operating lease liabilities |
|
(59,981 |
) |
|
|
(55,100 |
) |
Other liabilities |
|
1,852 |
|
|
|
1,526 |
|
Net cash provided by operating activities |
|
54,566 |
|
|
|
53,790 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(53,284 |
) |
|
|
(47,167 |
) |
Business acquisition, net of cash acquired |
|
(2,856 |
) |
|
|
— |
|
Settlement of derivative instruments, net |
|
28,136 |
|
|
|
32 |
|
Net cash used in investing activities |
|
(28,004 |
) |
|
|
(47,135 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net |
|
— |
|
|
|
529,247 |
|
Principal payments on long-term debt |
|
(52,500 |
) |
|
|
(237,525 |
) |
Payment of debt issuance costs |
|
(1,004 |
) |
|
|
(4,359 |
) |
Prepayment premium on extinguishment of debt |
|
(1,485 |
) |
|
|
— |
|
Advances on revolving line of credit |
|
— |
|
|
|
42,000 |
|
Repayments of revolving line of credit |
|
— |
|
|
|
(79,000 |
) |
Proceeds from stock option exercises |
|
3,139 |
|
|
|
— |
|
Dividends paid |
|
— |
|
|
|
(262,235 |
) |
Repurchase of common stock under share repurchase program |
|
(2,866 |
) |
|
|
— |
|
Repurchase of shares and shares withheld for taxes |
|
(40 |
) |
|
|
(849 |
) |
Settlement of derivative instrument, net |
|
11,925 |
|
|
|
3,889 |
|
Principal payments on finance lease liabilities |
|
(705 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(43,536 |
) |
|
|
(8,832 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(2,330 |
) |
|
|
1,610 |
|
Net change in cash and cash equivalents |
|
(19,304 |
) |
|
|
(567 |
) |
Cash and cash equivalents at beginning of period |
|
179,955 |
|
|
|
112,132 |
|
Cash and cash equivalents at end of period |
$ |
160,651 |
|
|
$ |
111,565 |
|
SAVERS VALUE VILLAGE, INC.
Supplemental Detail on Net Income Per Common Share Calculation
(Unaudited)
The following unaudited table sets forth the computation of net income per basic and diluted share as shown on the face of the accompanying condensed consolidated statements of net income:
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
||||||||
(in thousands, except per share data) |
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||
Numerator |
|
|
|
|
|
|
|
||||
Net income |
$ |
9,712 |
|
$ |
35,050 |
|
$ |
9,245 |
|
$ |
24,855 |
Denominator |
|
|
|
|
|
|
|
||||
Basic weighted average common shares outstanding |
|
161,788 |
|
|
141,712 |
|
|
161,518 |
|
|
141,705 |
Dilutive effect of employee stock options and awards |
|
6,222 |
|
|
4,462 |
|
|
6,502 |
|
|
4,553 |
Diluted weighted average common shares outstanding |
|
168,010 |
|
|
146,174 |
|
|
168,020 |
|
|
146,258 |
Net income per share |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.06 |
|
$ |
0.25 |
|
$ |
0.06 |
|
$ |
0.18 |
Diluted |
$ |
0.06 |
|
$ |
0.24 |
|
$ |
0.06 |
|
$ |
0.17 |
SAVERS VALUE VILLAGE, INC.
Supplemental Detail on Net Sales by Segment
(Unaudited)
The following unaudited tables present net sales by segment for the periods presented:
|
Thirteen Weeks Ended |
|
|
|
|
|||||||
(dollars in thousands) |
June 29, 2024 |
|
July 1, 2023 |
|
$ Change |
|
% Change |
|||||
|
$ |
207,068 |
|
$ |
196,500 |
|
$ |
10,568 |
|
|
5.4 |
% |
Canada Retail |
|
149,836 |
|
|
153,489 |
|
|
(3,653 |
) |
|
(2.4 |
) |
Other |
|
29,759 |
|
|
29,113 |
|
|
646 |
|
|
2.2 |
|
Total net sales |
$ |
386,663 |
|
$ |
379,102 |
|
$ |
7,561 |
|
|
2.0 |
% |
|
Twenty-Six Weeks Ended |
|
|
|
|
|||||||
(dollars in thousands) |
June 29, 2024 |
|
July 1, 2023 |
|
$ Change |
|
% Change |
|||||
|
$ |
399,648 |
|
$ |
380,521 |
|
$ |
19,127 |
|
|
5.0 |
% |
Canada Retail |
|
283,955 |
|
|
286,762 |
|
|
(2,807 |
) |
|
(1.0 |
) |
Other |
|
57,232 |
|
|
57,503 |
|
|
(271 |
) |
|
(0.5 |
) |
Total net sales |
$ |
740,835 |
|
$ |
724,786 |
|
$ |
16,049 |
|
|
2.2 |
% |
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 August 8, 2024, discussing the Company’s financial condition and results of operations for the second quarter.
The following unaudited table presents a reconciliation of net income and net income 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 |
|
Twenty-Six Weeks Ended |
||||||||||||
(in thousands, except per share amounts) |
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
Net income: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
9,712 |
|
|
$ |
35,050 |
|
|
$ |
9,245 |
|
|
$ |
24,855 |
|
Loss on extinguishment of debt(1)(2) |
|
— |
|
|
|
— |
|
|
|
4,088 |
|
|
|
6,011 |
|
IPO-related stock-based compensation expense(1)(3) |
|
19,732 |
|
|
|
26 |
|
|
|
|
|
26 |
|
||
Transaction costs(1)(4) |
|
350 |
|
|
|
780 |
|
|
|
2,607 |
|
|
|
1,720 |
|
Dividend-related bonus(1)(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,097 |
|
Loss (gain) on foreign currency, net(1) |
|
940 |
|
|
|
(4,487 |
) |
|
|
1,896 |
|
|
|
(5,782 |
) |
Executive transition costs(1)(6) |
|
610 |
|
|
|
— |
|
|
|
610 |
|
|
|
— |
|
Other adjustments(1)(7) |
|
(713 |
) |
|
|
170 |
|
|
|
(711 |
) |
|
|
(464 |
) |
Tax effect on adjustments(8) |
|
(7,179 |
) |
|
|
1,018 |
|
|
|
(15,861 |
) |
|
|
(7,426 |
) |
Excess tax shortfall (benefit) from stock-based compensation |
|
262 |
|
|
|
— |
|
|
|
(2,766 |
) |
|
— |
|
|
Adjusted net income |
$ |
23,714 |
|
|
$ |
32,557 |
|
|
$ |
36,833 |
|
|
$ |
43,037 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted*: |
|
|
|
|
|
|
|
||||||||
Net income per diluted share |
$ |
0.06 |
|
|
$ |
0.24 |
|
|
$ |
0.06 |
|
|
$ |
0.17 |
|
Loss on extinguishment of debt(1)(2) |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.04 |
|
IPO-related stock-based compensation expense(1)(3) |
|
0.12 |
|
|
|
— |
|
|
|
0.22 |
|
|
|
— |
|
Transaction costs(1)(4) |
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.01 |
|
Dividend-related bonus(1)(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.16 |
|
Loss (gain) on foreign currency, net(1) |
|
0.01 |
|
|
|
(0.03 |
) |
|
|
0.01 |
|
|
|
(0.04 |
) |
Executive transition costs(1)(6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other adjustments(1)(7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax effect on adjustments(8) |
|
(0.04 |
) |
|
|
0.01 |
|
|
|
(0.09 |
) |
|
|
(0.05 |
) |
Excess tax shortfall (benefit) from stock-based compensation |
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Adjusted net income per diluted share |
$ |
0.14 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
*May not foot due to rounding
(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) | Represents severance costs associated with executive leadership changes. |
|
(7) |
The thirteen and twenty-six weeks ended June 29, 2024 includes insurance proceeds of |
|
(8) | Tax effect on adjustments is calculated based on the forecasted effective tax rate for the fiscal year. |
|
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 |
$ |
42 |
|
|
$ |
56 |
|
Loss on extinguishment of debt(1)(2) |
|
4 |
|
|
|
4 |
|
IPO-related stock-based compensation expense(1)(3) |
|
55 |
|
|
|
55 |
|
Transaction costs(1)(4) |
|
3 |
|
|
|
3 |
|
Loss on foreign currency, net(1) |
|
2 |
|
|
|
2 |
|
Executive transition costs(1)(5) |
|
1 |
|
|
|
1 |
|
Tax effect on adjustments |
|
(22 |
) |
|
|
(22 |
) |
Excess tax benefit from stock-based compensation |
|
(3 |
) |
|
|
(3 |
) |
Adjusted net income |
$ |
82 |
|
|
$ |
96 |
|
(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. |
|
(5) | Represents severance costs associated with executive leadership changes. |
|
The following unaudited table presents a reconciliation of GAAP net income to Adjusted EBITDA for the periods presented:
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
||||||||||||
|
June 29, 2024 |
July 1, 2023 |
|
June 29, 2024 |
July 1, 2023 |
||||||||||
(in thousands) |
|
|
|
|
|
||||||||||
Net income |
$ |
9,712 |
|
$ |
35,050 |
|
|
$ |
9,245 |
|
$ |
24,855 |
|
||
Interest expense, net |
|
15,767 |
|
|
27,734 |
|
|
|
31,843 |
|
|
52,204 |
|
||
Income tax expense |
|
6,293 |
|
|
11,000 |
|
|
|
1,801 |
|
|
7,563 |
|
||
Depreciation and amortization |
|
17,380 |
|
|
14,693 |
|
|
|
35,681 |
|
|
29,177 |
|
||
Loss on extinguishment of debt(1) |
|
— |
|
|
— |
|
|
|
4,088 |
|
|
6,011 |
|
||
Stock-based compensation expense(2) |
|
21,650 |
|
|
940 |
|
|
|
40,779 |
|
|
1,857 |
|
||
Non-cash occupancy-related costs(3) |
|
1,741 |
|
|
714 |
|
|
|
3,734 |
|
|
1,411 |
|
||
Lease intangible asset expense(4) |
|
904 |
|
|
1,027 |
|
|
|
1,781 |
|
|
2,153 |
|
||
Pre-opening expenses(5) |
|
5,255 |
|
|
1,214 |
|
|
|
6,757 |
|
|
2,592 |
|
||
Store closing expenses(6) |
|
154 |
|
|
419 |
|
|
|
207 |
|
|
867 |
|
||
Executive transition costs(7) |
|
610 |
|
|
— |
|
|
|
610 |
|
|
— |
|
||
Transaction costs(8) |
|
350 |
|
|
780 |
|
|
|
2,607 |
|
|
1,720 |
|
||
Dividend-related bonus(9) |
|
— |
|
|
— |
|
|
|
— |
|
|
24,097 |
|
||
Loss (gain) on foreign currency, net |
|
940 |
|
|
(4,487 |
) |
|
|
1,896 |
|
|
(5,782 |
) |
||
Other adjustments(9) |
|
(713 |
) |
|
170 |
|
|
|
(711 |
) |
|
(464 |
) |
||
Adjusted EBITDA |
$ |
80,043 |
|
$ |
89,254 |
|
|
$ |
140,318 |
|
$ |
148,261 |
|
||
Net income margin |
|
2.5 |
% |
|
9.2 |
% |
|
|
1.2 |
% |
|
3.4 |
% |
||
Adjusted EBITDA margin |
|
20.7 |
% |
|
23.5 |
% |
|
|
18.9 |
% |
|
20.5 |
% |
(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) |
Represents severance costs associated with executive leadership changes. |
|
(8) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. |
|
(9) |
Represents dividend-related bonus and related taxes paid in conjunction with our February 2023 dividend. |
|
(10) |
The thirteen and twenty-six weeks ended June 29, 2024 includes insurance 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) |
June 29, 2024 |
|
July 1, 2023 |
|
$ Change |
|
% Change |
|||
Net sales |
$ |
386,663 |
|
$ |
379,102 |
|
$ |
7,561 |
|
|
Impact of foreign currency |
|
3,005 |
|
|
n/a |
|
|
3,005 |
|
n/m |
Constant-currency net sales |
$ |
389,668 |
|
$ |
379,102 |
|
$ |
10,566 |
|
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|||||
(dollars in thousands) |
June 29, 2024 |
|
July 1, 2023 |
|
$ Change |
|
% Change |
|||
Net sales |
$ |
740,835 |
|
$ |
724,786 |
|
$ |
16,049 |
|
|
Impact of foreign currency |
|
2,914 |
|
|
n/a |
|
|
2,914 |
|
n/m |
Constant-currency net sales |
$ |
743,749 |
|
$ |
724,786 |
|
$ |
18,963 |
|
|
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 |
|
Twenty-Six Weeks Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
Comparable Store Sales (1) |
|
|
|
|
|
|
|
||||||||
|
|
2.1 |
% |
|
|
5.6 |
% |
|
|
2.2 |
% |
|
|
5.6 |
% |
|
|
(3.1 |
)% |
|
|
5.5 |
% |
|
|
(2.9 |
)% |
|
|
7.1 |
% |
Total (2) |
|
(0.1 |
)% |
|
|
5.5 |
% |
|
|
0.1 |
% |
|
|
6.3 |
% |
Number of Stores |
|
|
|
|
|
|
|
||||||||
|
|
165 |
|
|
|
152 |
|
|
|
165 |
|
|
|
152 |
|
|
|
159 |
|
|
|
154 |
|
|
|
159 |
|
|
|
154 |
|
Total (2) |
|
337 |
|
|
|
318 |
|
|
|
337 |
|
|
|
318 |
|
Processed Supply Volume (lbs mm) |
|
254 |
|
|
|
246 |
|
|
|
492 |
|
|
|
485 |
|
Sales Yield (3) |
$ |
1.46 |
|
|
$ |
1.49 |
|
|
$ |
1.44 |
|
|
$ |
1.44 |
|
(1) |
Comparable store sales 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 2024, comparable store sales excludes stores acquired in the 2 Peaches Acquisition. In fiscal year 2023, comparable store sales excludes stores acquired in the 2nd Ave. acquisition because those stores were not yet fully integrated during the prior year comparative period. Comparable store sales is measured in local currency for |
|
(2) |
Total comparable store sales 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/20240808549116/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
What were the Q2 2024 net sales for Savers Value Village (SVV)?
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