Duluth Holdings Inc 8-K/A, filed Dec 7, 2020
Duluth Holdings Inc. (DLTH)
About this 8-K/A
Duluth Holdings Inc filed this 8-K/A on December 7, 2020, reporting on events of December 3, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Securities registered pursuant to Section 129b) of the Act:
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Explanatory Note
Item 2.02 Results of Operations and Financial Condition.
The following information, including Exhibit 99.1 hereto, referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On December 3, 2020, Duluth Holdings Inc. (the “Company” or “Duluth Trading”) issued a press release (the “Earnings Press Release”) discussing, among other things, its financial results for its fiscal third quarter ended November 1, 2020. A copy of the Earnings Press Release is furnished as Exhibit 99.1 to this report.
Forward Looking Information
Certain matters discussed in this Current Report on Form 8-K and other oral and written statements by representatives of the Company including, but not limited to, the Company’s ability to meet its fiscal 2020 expectations (including its ability to increase net sales, adjusted EBITDA, and diluted EPS) and its ability to execute on its growth strategies, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “believe,” “estimate,” “project,” “target,” “predict,” “intend,” “future,” “budget,” “goals,” “potential,” “continue,” “design,” “objective,” “would,” and other similar expressions. The forward-looking statements are not historical facts, and are based upon Duluth Trading’s current expectations, beliefs, estimates, and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond Duluth Trading’s control. Duluth Trading’s expectations, beliefs and projections are expressed in good faith, and Duluth Trading believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates, and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including, among others, the risks, uncertainties, and factors set forth under "Risk Factors" in the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2020 and Part II, Item 1A “Rick Factors” in the Company’s Quarterly Report on Form 10-Q filed with the SEC on June 5, 2020 and September 4, 2020, and other factors as may be periodically described in Duluth Trading’s subsequent filings with the SEC. These risks and uncertainties include, but are not limited to, the following: our ability to maintain and enhance a strong brand image; our ability to successfully open new stores; effectively adapting to new challenges associated with our expansion into new geographic markets; generating adequate cash from our existing stores to support our growth; the inability to maintain the performance of a maturing store portfolio; the impact of changes in corporate tax regulations; identifying and responding to new and changing customer preferences; the success of the locations in which our stores are located; our ability to attract and retain customers in the various retail venues and locations in which our stores are located; competing effectively in an environment of intense competition; our ability to adapt to significant changes in sales due to the seasonality of our business; price reductions or inventory shortages resulting from failure to purchase the appropriate amount of inventory in advance of the season in which it will be sold; increases in costs of fuel or other energy, transportation or utility costs and in the costs of labor and employment; failure of our information technology systems to support our current and growing business, before and after our planned upgrades; and other factors that may be disclosed in our SEC filings or otherwise. Forward-looking statements speak only as of the date the statements are made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are being furnished with this Current Report on Form 8-K.
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| Exhibit No. |
| Description |
| 99.1 |
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| 104 |
| Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| DULUTH HOLDINGS INC. | |
Date: December 4, 2020 |
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| By: | /s/ David Loretta |
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| Name: David Loretta |
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| Title: Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX
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Exhibit No. | Description | ||
99.1 | |||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||
Exhibit 99.1
Duluth Holdings Inc. Announces Third Quarter Fiscal 2020 Financial Results
MOUNT HOREB, Wis., December 3, 2020 – Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), an omnichannel lifestyle brand of men’s and women’s casual wear, workwear and accessories, today announced its financial results for the fiscal third quarter ended November 1, 2020.
Highlights for the Third Quarter Ended November 1, 2020
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Net sales increased 13.2% to $135.5 million compared to $119.8 million in the prior-year third quarter |
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Direct-to-consumer net sales increased 40.3% and retail store net sales decreased 15.5% compared to prior-year third quarter |
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Gross margin decreased to 52.4% compared to 54.6% in the prior-year third quarter |
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Operating income increased to $2.8 million compared to operating income of $1.3 million in the prior-year third quarter |
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Net income increased to $0.9 million, or $0.03 per diluted share, compared to net income of $0.2 million, or $0.01 per diluted share, in the prior-year third quarter |
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Adjusted EBITDA1 increased 57.4% to $11.4 million compared to $7.3 million in the prior-year third quarter |
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The Company opened three retail stores in Springfield OR, Orland Park IL and Florence KY, adding approximately 32,800 gross square feet |
1See Reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.
Management Commentary
“We’re pleased to report third quarter net sales growth of 13% to $136 million, largely driven by a 40% growth in direct sales year-over-year. Effective and timely brand messaging, coupled with strong product lines, drove top line sales momentum during the third quarter,” said Steve Schlecht, Executive Chairman and CEO of Duluth Trading. “Customer traffic from our digital channel continued at the same strong pace as the second quarter with 15 million site visits, up 30% to last year. All 65 of our retail stores were open during the quarter. Retail store sales declined just 16% year-over-year, which was the best store performance we’ve seen since the pandemic began.”
Schlecht continued, “While the remainder of the holiday shopping season is difficult to predict, we’ve done everything within our control to be prepared for our peak fourth quarter. We are fully staffed across all our operations; inventory levels are in good shape, and we’re fortunate to have customer-centric technologies in place like buy-on-line, pick-up in store. We remain confident in our brand, the strength of our omni-channel model and our team’s ability to provide an exceptional customer experience this holiday season and beyond.”
1
Operating Results for the Third Quarter Ended November 1, 2020
Net sales increased 13.2%, to $135.5 million, compared to $119.8 million in the same period a year ago. The increase was attributed to a 40.3% increase in direct-to-consumer net sales, partially offset by a 15.5% decrease in retail store net sales. The increase in the direct-to-consumer net sales was driven by a shift of existing customers to online, as well as new buyer growth. Total new buyer growth increased 22.9% compared to the same period a year ago. The decrease in retail store net sales was due to continued COVID-19 safety concerns keeping store traffic at subdued levels.
Net sales in non-store markets increased 37.5%, to $40.6 million, compared to $29.5 million in the same period a year ago. The increase was driven by new buyer growth and effective digital advertising to promote Pink Buck Naked, Big Dam Birthday and global sales events. Net sales in store markets increased 5.6%, to $93.8 million, compared to $88.8 million in the same period a year ago. The increase was driven by growth in online sales from both existing customers and new buyers, with direct-to-consumer sales in store markets increasing 45.9%, partially offset by a decline in in-store sales. We believe the difference in the increase in website and catalog sales between store and non-store markets continues to demonstrate the importance of our retail stores in building brand awareness and expanding our loyal customer base.
Men’s business net sales increased 12.4% driven by growth in core products, Alaskan Hardgear and apparel newness. Women’s business net sales increased 15.1% driven by comfortable basics, workwear essentials and plus line apparel.
Gross profit increased 8.7%, to $71.0 million, or 52.4% of net sales, compared to $65.4 million, or 54.6% of net sales, in the corresponding prior-year period. The decrease in gross margin rate was primarily driven by promotional, clearance and sitewide sales events to continue moving inventory during the period of slower store traffic and drive top-line growth. The decrease was partially offset by reduced store delivery costs from lower store sales volumes.
Selling, general and administrative expenses increased 6.5% to $68.2 million, compared to $64.0 million in the same period a year ago. As a percentage of net sales, selling, general and administrative expenses decreased to 50.3%, compared to 53.5% in the corresponding prior-year period. The positive leverage was primarily due to shifting to a more efficient digital marketing approach as customer purchasing patterns migrated to online.
The increase in selling, general and administrative expense was due to increased shipping costs to support website sales, higher retail overhead costs driven by new store growth and increased depreciation expense associated with investments in technology, partially offset by reduced catalog spend and national TV advertising.
Balance Sheet and Liquidity
The Company ended the quarter with a cash balance of $12.8 million, an inventory balance of $213.4 million, net working capital of $136.6 million, $48.9 million outstanding on its $70.5 million term loan, and $43.0 million outstanding on its $80.0 million revolving line of credit.
2
Fiscal 2020 Outlook
Given the unpredictability of the effects of the COVID-19 pandemic on, among other things, consumer behavior, store traffic, store operations, production capabilities, timing of deliveries, our people, economic activity and the market generally in the coming weeks and months, the Company is unable to provide specific earnings guidance at this time.
In response to expected impacts to sales plans, the Company has reduced its planned capital spend levels from the beginning of the fiscal year by 40% to approximately $17.0 million primarily by decreasing fiscal 2020 new store openings to four and deferring certain technology and infrastructure projects, as well as continuing to focus on managing expense, extending payment terms and adjusting inventory receipt plans.
The following table recaps the Company’s fiscal 2020 stores opened, which reflects the Company’s plan to reduce fiscal 2020 store openings, as well as the one signed new store lease for 2021 and the anticipated opening timeframe.
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Gross |
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Location |
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Timing |
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Square Footage |
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Short Pump, VA |
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Opened March 5, 2020 |
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16,828 |
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Springfield, OR |
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Opened August 14, 2020 |
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20,388 |
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Orland Park, IL |
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Opened August 20, 2020 |
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10,000 |
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Florence, KY |
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Opened October 1, 2020 |
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11,441 |
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Cherry Hill, NJ |
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Fiscal 2021 |
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11,441 |
Conference Call Information
A conference call and audio webcast with analysts and investors will be held on Thursday, December 3, 2020 at 9:30 am Eastern Time, to discuss the results and answer questions.
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Live conference call: 844-875-6915 (domestic) or 412-317-6711 (international) |
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Conference call replay available through December 17, 2020: 877-344-7529 (domestic) or 412-317-0088 (international) |
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Replay access code: 10150142 |
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Live and archived webcast: ir.duluthtrading.com |
Investors can pre-register for the earnings conference call to expedite their entry into the call and avoid waiting for a live operator. To pre-register for the call, please visit http://dpregister.com/10150142 and enter your contact information. You will then be issued a personalized phone number and pin to dial into the live conference call. Investors can pre-register any time prior to the start of the conference call.
About Duluth Trading
Duluth Trading is a growing lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we offer high quality, solution-based casual wear, workwear and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and our products are sold exclusively through our content-rich website, catalogs, and “store like no other” retail locations. We are committed to outstanding customer service backed by our “No Bull Guarantee” - if it’s not right, we’ll fix it. Visit our website at www.duluthtrading.com.
3
Non-GAAP Measurements
Management believes that non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this release, including the tables attached hereto, reference is made to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). See attached Table “Reconciliation of Net Income (Loss) to EBITDA and EBITDA to Adjusted EBITDA,” for a reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three and nine months ended November 1, 2020, versus the three and nine months ended November 3, 2019. Adjusted EBITDA is a metric used by management and frequently used by the financial community, which provides insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA excludes certain items that are unusual in nature or not comparable from period to period. The Company provides this information to investors to assist in comparisons of past, present and future operating results and to assist in highlighting the results of on-going operations. While the Company’s management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace the Company’s GAAP financial results and should be read in conjunction with those GAAP results.
4
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including statements concerning Duluth Trading's plans, objectives, goals, beliefs, business strategies, future events, business conditions, its results of operations, financial position and its business outlook, business trends and certain other information herein are forward-looking statements, including statements regarding Duluth Trading’s ability to execute on its growth strategies, and statements under the heading “Fiscal 2020 Outlook.” You can identify forward-looking statements by the use of words such as “may,” ”might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “believe,” “estimate,” “project,” “target,” “predict,” “intend,” “future,” “budget,” “goals,” “potential,” “continue,” “design,” “objective,” “forecasted,” “would” and other similar expressions. The forward-looking statements are not historical facts, and are based upon Duluth Trading's current expectations, beliefs, estimates, and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond Duluth Trading's control. Duluth Trading's expectations, beliefs and projections are expressed in good faith, and Duluth Trading believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates, and projections will be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including, among others, the risks, uncertainties, and factors set forth under Part I, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2020 and Part II, Item 1A “Risk Factors” in the Company’s Quarterly Report on Form 10-Q filed with the SEC on June 5, 2020 and September 4, 2020, and other factors as may be periodically described in Duluth Trading’s subsequent filings with the SEC. These risks and uncertainties include, but are not limited to, the following: adverse changes in the economy or business conditions, including the adverse effects of the COVID-19 pandemic; prolonged effects of the COVID-19 pandemic on store traffic and disruptions to our distribution network, supply chains and operations; our ability to maintain and enhance a strong brand image; our ability to successfully open new stores; effectively adapting to new challenges associated with our expansion into new geographic markets; generating adequate cash from our existing stores to support our growth; the inability to maintain the performance of a maturing store portfolio; the impact of changes in corporate tax regulations; identifying and responding to new and changing customer preferences; the success of the locations in which our stores are located; our ability to attract and retain customers in the various retail venues and locations in which our stores are located; competing effectively in an environment of intense competition; our ability to adapt to significant changes in sales due to the seasonality of our business; price reductions or inventory shortages resulting from failure to purchase the appropriate amount of inventory in advance of the season in which it will be sold; increases in costs of fuel or other energy, transportation or utility costs and in the costs of labor and employment; failure of our information technology systems to support our current and growing business, before and after our planned upgrades; and other factors that may be disclosed in our SEC filings or otherwise. Forward-looking statements speak only as of the date the statements are made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.
Investor Contacts:
Donni Case (310) 622-8224
Margaret Boyce (310) 622-8247
Financial Profiles, Inc.
Duluth@finprofiles.com
# # #
(Tables Follow)
5
DULUTH HOLDINGS INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
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November 1, 2020 |
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February 2, 2020 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
12,800 |
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$ |
2,189 |
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Receivables |
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1,534 |
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1,470 |
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Income taxes receivable |
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3,549 |
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— |
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Inventory, net |
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213,403 |
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147,849 |
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Prepaid expenses & other current assets |
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10,515 |
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9,503 |
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Prepaid catalog costs |
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1,087 |
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1,181 |
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Total current assets |
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242,888 |
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162,192 |
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Property and equipment, net |
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129,938 |
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137,071 |
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Operating lease right-of-use assets |
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120,420 |
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120,431 |
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Finance lease right-of-use assets, net |
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54,208 |
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46,677 |
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Restricted cash |
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— |
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51 |
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Available-for-sale security |
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6,022 |
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6,432 |
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Other assets, net |
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1,271 |
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1,196 |
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Total assets |
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$ |
554,747 |
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$ |
474,050 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Trade accounts payable |
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$ |
57,051 |
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$ |
33,053 |
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Accrued expenses and other current liabilities |
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32,392 |
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29,464 |
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Income taxes payable |
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— |
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3,427 |
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Current portion of operating lease liabilities |
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11,132 |
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10,674 |
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Current portion of finance lease liabilities |
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2,594 |
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1,600 |
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Current portion of Duluth long-term debt |
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2,500 |
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1,000 |
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Current maturities of TRI long-term debt1 |
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606 |
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557 |
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Total current liabilities |
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106,275 |
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79,775 |
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Operating lease liabilities, less current maturities |
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107,082 |
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106,120 |
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Finance lease liabilities, less current maturities |
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43,968 |
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37,434 |
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Duluth long-term debt, less current maturities |
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89,400 |
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38,332 |
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TRI long-term debt, less current maturities1 |
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27,376 |
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27,778 |
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Deferred tax liabilities |
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11,886 |
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8,505 |
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Total liabilities |
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385,987 |
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297,944 |
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Commitments and contingencies |
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Shareholders' equity: |
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Treasury stock |
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(622) |
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(407) |
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Capital stock |
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92,385 |
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90,902 |
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Retained earnings |
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79,335 |
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87,589 |
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Accumulated other comprehensive (loss) income, net |
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(44) |
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188 |
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Total shareholders' equity of Duluth Holdings Inc. |
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171,054 |
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178,272 |
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Noncontrolling interest |
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(2,294) |
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(2,166) |
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Total shareholders' equity |
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168,760 |
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176,106 |
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Total liabilities and shareholders' equity |
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$ |
554,747 |
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$ |
474,050 |
1 Represents debt of the variable interest entity, TRI Holdings, LLC, that is consolidated in accordance with ASC 810, Consolidation. Duluth Trading Company is not the guarantor nor the obligor of this debt.
6
DULUTH HOLDINGS INC.
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share figures)
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Three Months Ended |
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Nine Months Ended |
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November 1, 2020 |
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November 3, 2019 |
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November 1, 2020 |
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November 3, 2019 |
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Net sales |
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$ |
135,531 |
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$ |
119,768 |
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$ |
382,823 |
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$ |
355,975 |
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Cost of goods sold (excluding depreciation and amortization) |
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64,494 |
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54,403 |
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186,982 |
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164,888 |
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Gross profit |
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71,037 |
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65,365 |
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195,841 |
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191,087 |
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Selling, general and administrative expenses |
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68,189 |
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64,037 |
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202,175 |
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196,128 |
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Operating income (loss) |
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2,848 |
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1,328 |
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(6,334) |
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(5,041) |
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Interest expense |
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1,643 |
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1,500 |
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4,771 |
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3,131 |
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Other income (loss), net |
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87 |
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58 |
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(104) |
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254 |
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Income (loss) before income taxes |
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1,292 |
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(114) |
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(11,209) |
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(7,918) |
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Income tax expense (benefit) |
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393 |
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(203) |
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(2,827) |
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(2,209) |
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Net income (loss) |
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899 |
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89 |
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(8,382) |
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(5,709) |
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Less: Net loss attributable to noncontrolling interest |
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(41) |
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(93) |
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(128) |
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(256) |
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Net income (loss) attributable to controlling interest |
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$ |
940 |
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$ |
182 |
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$ |
(8,254) |
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$ |
(5,453) |
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Basic earnings (loss) per share (Class A and Class B): |
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Weighted average shares of common stock outstanding |
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32,476 |
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32,322 |
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32,431 |
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32,299 |
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Net income (loss) per share attributable to controlling interest |
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$ |
0.03 |
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$ |
0.01 |
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$ |
(0.25) |
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$ |
(0.17) |
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Diluted earnings (loss) per share (Class A and Class B): |
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Weighted average shares and equivalents outstanding |
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32,606 |
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32,322 |
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32,431 |
|
|
32,299 |
|
Net income (loss) per share attributable to controlling interest |
|
$ |
0.03 |
|
$ |
0.01 |
|
$ |
(0.25) |
|
$ |
(0.17) |
7
DULUTH HOLDINGS INC.
Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||
|
|
|
November 1, 2020 |
|
November 3, 2019 |
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net loss |
|
$ |
(8,382) |
|
$ |
(5,709) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
21,209 |
|
|
15,934 |
|
Stock based compensation |
|
|
1,263 |
|
|
282 |
|
Deferred income taxes |
|
|
3,463 |
|
|
(914) |
|
Loss on disposal of property and equipment |
|
|
304 |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Receivables |
|
|
(64) |
|
|
(103) |
|
Income taxes receivable |
|
|
(3,549) |
|
|
(2,157) |
|
Inventory |
|
|
(65,554) |
|
|
(85,430) |
|
Prepaid expense & other current assets |
|
|
1,154 |
|
|
2,568 |
|
Deferred catalog costs |
|
|
94 |
|
|
1,611 |
|
Trade accounts payable |
|
|
21,424 |
|
|
29,862 |
|
Income taxes payable |
|
|
(3,427) |
|
|
(218) |
|
Accrued expenses and deferred rent obligations |
|
|
2,667 |
|
|
(3,350) |
|
Noncash lease impacts |
|
|
784 |
|
|
— |
|
Net cash used in operating activities |
|
|
(28,614) |
|
|
(47,624) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(11,059) |
|
|
(20,899) |
|
Capital contributions towards build-to-suit stores |
|
|
(520) |
|
|
(3,712) |
|
Principal receipts from available-for-sale security |
|
|
96 |
|
|
85 |
|
Change in other assets |
|
|
— |
|
|
(15) |
|
Net cash used in investing activities |
|
|
(11,483) |
|
|
(24,541) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from line of credit |
|
|
84,588 |
|
|
225,079 |
|
Payments on line of credit |
|
|
(60,894) |
|
|
(171,152) |
|
Proceeds from delayed draw term loan |
|
|
32,500 |
|
|
20,000 |
|
Payments on delayed draw term loan |
|
|
(3,625) |
|
|
— |
|
Payments on TRI long term debt |
|
|
(354) |
|
|
(362) |
|
Payments on finance lease obligations |
|
|
(1,325) |
|
|
(528) |
|
Shares withheld for tax payments on vested restricted shares |
|
|
(215) |
|
|
(314) |
|
Other |
|
|
(18) |
|
|
320 |
|
Net cash provided by financing activities |
|
|
50,657 |
|
|
73,043 |
|
Increase in cash, cash equivalents and restricted cash |
|
|
10,560 |
|
|
878 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
2,240 |
|
|
3,085 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
12,800 |
|
$ |
3,963 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
Interest paid |
|
$ |
4,730 |
|
$ |
3,301 |
|
Income taxes paid |
|
$ |
40 |
|
$ |
555 |
|
Supplemental disclosure of non-cash information: |
|
|
|
|
|
|
|
Unpaid liability to acquire property and equipment |
|
$ |
657 |
|
$ |
378 |
8
DULUTH HOLDINGS INC.
Reconciliation of Net Income (Loss) to EBITDA and EBITDA to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
November 1, 2020 |
|
November 3, 2019 |
|
November 1, 2020 |
|
November 3, 2019 |
||||
|
Net income (loss) |
|
$ |
899 |
|
$ |
89 |
|
$ |
(8,382) |
|
$ |
(5,709) |
|
Depreciation and amortization |
|
|
7,917 |
|
|
6,529 |
|
|
21,209 |
|
|
15,934 |
|
Interest expense |
|
|
1,643 |
|
|
1,500 |
|
|
4,771 |
|
|
3,131 |
|
Amortization of build-to-suit operating leases |
|
|
199 |
|
|
94 |
|
|
596 |
|
|
573 |
|
Income tax expense (benefit) |
|
|
393 |
|
|
(203) |
|
|
(2,827) |
|
|
(2,209) |
|
EBITDA |
|
$ |
11,051 |
|
$ |
8,009 |
|
$ |
15,367 |
|
$ |
11,720 |
|
Stock based compensation |
|
|
382 |
|
|
(747) |
|
|
1,263 |
|
|
282 |
|
Adjusted EBITDA |
|
$ |
11,433 |
|
$ |
7,262 |
|
$ |
16,630 |
|
$ |
12,002 |
9