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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Date of report (Date of earliest event reported): | ||
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(Exact name of registrant as specified in its charter) | ||
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(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
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(Registrant’s telephone number, including area code) | ||
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. ¨
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 1, 2022, 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 October 30, 2022. 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 2022 expectations (including its ability to increase net sales, adjusted EBITDA, and diluted EPS) and its ability to execute on its growth strategies and its long-term growth targets, 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 25, 2022 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: the impact of inflation on our results of operations; the prolonged effects of COVID-19 on store traffic and disruptions to our distribution network, supply chains and operations; our ability to maintain and enhance a strong brand image; effectively adapting to new challenges associated with our expansion into new geographic markets; generating adequate cash from our existing stores to support our growth; effectively relying on sources for merchandise located in foreign markets; transportation delays and interruptions, including port congestion; inability to timely and effectively obtain shipments of products from our suppliers and deliver merchandise to our customers; 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 in global market constraints; 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) |
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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 1, 2022 |
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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 2022 Financial Results
Net Sales of $147.1 million increase 1.3% compared to Q3 2021
Strong financial condition with $200 million of liquidity
Updates Fiscal 2022 outlook
MOUNT HOREB, WI – December 1, 2022 – Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of men’s and women’s workwear, casual wear, outdoor apparel and accessories, today announced its financial results for the fiscal third quarter ended October 30, 2022.
Highlights for the Third Quarter Ended October 30, 2022
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Net sales increase 1.3% to $147.1 million compared to $145.3 million in the prior year third quarter |
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AKHG sub-brand registers 44% year-over-year growth led by Women’s |
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Total company Women’s sales increase 10% |
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Inventories well managed; strategically positioned in core year-round goods; down 4% compared to Q3 2020 |
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Adjusted EBITDA1 of $1.7 million |
1See Reconciliation of net (loss) income to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.
Management Commentary
President and CEO, Sam Sato commented, “The customer response to our updated brand positioning has been strong and led to a Q3 increase in net sales of 1.3%. That said, we are seeing the impacts of the inflationary environment on our core consumers which we believe will continue through Q4 and into next year. In Q3 we took appropriate actions aligned with the shift in consumer behavior resulting in contraction in our selling gross margins. Reflecting a softer consumer backdrop, we are updating our full year guidance. Importantly, our brand continues to strongly resonate with consumers and our inventories, below levels from two years ago, are in a healthy position to support peak holiday shopping.”
1
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Sato concluded, “During the third quarter, we continued the introduction of our AKHG outdoor recreational assortment for Women with great success in new Fall and Winter seasonal items. Our Women’s business overall increased 10% and represented 32% of total third quarter company sales. We are excited to have |
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reconfigured 20 stores with an expansion of our Women’s footprint and the investments we’ve made in product innovation and great brand marketing to build our Women’s collections are paying off by cementing Duluth Trading Co. as a balanced, co-gender lifestyle brand that leverages our customer shopper profile where female shoppers make up 50% of the purchases. We remain committed to the strategic pillars of our Big Dam Blueprint leading with a digital-first mindset, while we future proof our business through key infrastructure investments. We are in a strong financial position and our Duluth brand and sub-brands continue to broadly resonate with consumers.” |
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Operating Results for the Third Quarter Ended October 30, 2022
Net sales increased 1.3% to $147.1 million, compared to $145.3 million in the same period a year ago. Direct-to-consumer net sales increased by 6.8% to $91.0 million due to growth in website visits, coupled with increased promotional activity during the current quarter. Retail store net sales decreased by 6.6% to $56.1 million due to continued slower store traffic, which was partially offset by continued strong conversion rates.
Gross profit decreased to $76.9 million, or 52.3% of net sales, compared to $83.7 million, or 57.6% of net sales, in the corresponding prior year period. The decrease in gross profit margin was primarily driven by increased promotional activity during the current period.
Selling, general and administrative expenses increased 7.0% to $84.3 million, compared to $78.8 million in the same period a year ago. As a percentage of net sales, selling, general and administrative expenses increased to 57.3%, compared to 54.2% in the corresponding prior year period.
The increase in selling, general and administrative expense was primarily due to increased digital advertising to drive brand awareness and store traffic, as well as increased depreciation from continued capital investments.
The effective tax rate related to controlling interest was 25% in both the current and prior year periods.
Balance Sheet and Liquidity
The Company ended the quarter with a cash balance of $9.4 million, an inventory balance of $204.7 million, net working capital of $98.7 million, and $10.0 million outstanding on the Duluth Trading revolving line of credit.
The Company’s updated fiscal 2022 outlook is as follows:
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Net sales in the range of $650 million to $680 million |
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Adjusted EBITDA in the range of $42 million to $49 million1 |
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EPS in the range of $0.05 to $0.20 per diluted share |
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Capital expenditures, inclusive of software hosting implementation costs, of approximately $35 million |
2
1See Reconciliation of forecasted net income to forecasted EBITDA and forecasted EBITDA to forecasted Adjusted EBITDA in the accompanying financial tables.
Conference Call Information
A conference call and audio webcast with analysts and investors will be held on Thursday, December 1, 2022 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 8, 2022: 877-344-7529 (domestic) or 412-317-0088 (international) |
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Replay access code: 2048229 |
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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 https://dpregister.com/2048229 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 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 are available 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 http://www.duluthtrading.com.
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 October 30, 2022, versus the three and nine months ended October 31, 2021.
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.
3
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, including statements under the heading “Updated Fiscal 2022 Outlook” are forward-looking statements. 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 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 25, 2022 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: the impact of inflation on our results of operations; the prolonged effects of COVID-19 on store traffic and disruptions to our distribution network, supply chains and operations; our ability to maintain and enhance a strong brand image; effectively adapting to new challenges associated with our expansion into new geographic markets; generating adequate cash from our existing stores to support our growth; effectively relying on sources for merchandise located in foreign markets; transportation delays and interruptions, including port congestion; inability to timely and effectively obtain shipments of products from our suppliers and deliver merchandise to our customers; 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 in global market constraints; 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:
Tom Filandro
ICR, Inc.
(646) 277-1200
DuluthIR@icrinc.com
(Tables Follow)
***
4
DULUTH HOLDINGS INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
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October 30, 2022 |
January 30, 2022 |
October 31, 2021 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ |
9,407 |
$ |
77,051 |
$ |
19,753 | |||
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Receivables |
6,466 | 5,455 | 5,133 | ||||||
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Income tax receivable |
1,452 |
— |
605 | ||||||
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Inventory, net |
204,717 | 122,672 | 165,078 | ||||||
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Prepaid expenses & other current assets |
17,964 | 17,333 | 14,787 | ||||||
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Prepaid catalog costs |
11 | 10 | 635 | ||||||
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Total current assets |
240,017 | 222,521 | 205,991 | ||||||
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Property and equipment, net |
112,800 | 110,078 | 114,579 | ||||||
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Operating lease right-of-use assets |
135,164 | 120,911 | 124,164 | ||||||
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Finance lease right-of-use assets, net |
47,938 | 50,133 | 50,866 | ||||||
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Available-for-sale security |
5,285 | 6,554 | 6,598 | ||||||
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Other assets, net |
6,446 | 5,353 | 5,382 | ||||||
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Total assets |
$ |
547,650 |
$ |
515,550 |
$ |
507,580 | |||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Trade accounts payable |
$ |
77,842 |
$ |
45,402 |
$ |
59,157 | |||
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Accrued expenses and other current liabilities |
34,795 | 47,504 | 41,832 | ||||||
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Income taxes payable |
— |
6,814 |
— |
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Current portion of operating lease liabilities |
15,095 | 12,882 | 12,362 | ||||||
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Current portion of finance lease liabilities |
2,802 | 2,701 | 2,679 | ||||||
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Duluth line of credit |
10,000 |
— |
— |
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Current maturities of TRI long-term debt1 |
749 | 693 | 675 | ||||||
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Total current liabilities |
141,283 | 115,996 | 116,705 | ||||||
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Operating lease liabilities, less current maturities |
120,908 | 107,094 | 110,370 | ||||||
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Finance lease liabilities, less current maturities |
38,151 | 40,267 | 40,954 | ||||||
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TRI long-term debt, less current maturities1 |
26,099 | 26,608 | 26,773 | ||||||
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Deferred tax liabilities |
2,572 | 2,867 | 8,092 | ||||||
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Total liabilities |
329,013 | 292,832 | 302,894 | ||||||
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Commitments and contingencies |
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Shareholders' equity: |
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Treasury stock |
(1,459) | (1,002) | (998) | ||||||
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Capital stock |
97,977 | 95,515 | 94,815 | ||||||
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Retained earnings |
125,725 | 130,868 | 113,509 | ||||||
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Accumulated other comprehensive income, net |
(372) | 489 | 494 | ||||||
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Total shareholders' equity of Duluth Holdings Inc. |
221,871 | 225,870 | 207,820 | ||||||
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Noncontrolling interest |
(3,234) | (3,152) | (3,134) | ||||||
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Total shareholders' equity |
218,637 | 222,718 | 204,686 | ||||||
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Total liabilities and shareholders' equity |
$ |
547,650 |
$ |
515,550 |
$ |
507,580 | |||
1Represents debt of the variable interest entity, TRI Holdings, LLC, that is consolidated in accordance with ASC 810, Consolidation. Duluth Holdings Inc. is not the guarantor nor the obligor of this debt.
5
DULUTH HOLDING INC.
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share figures)
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Three Months Ended |
Nine Months Ended |
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October 30, 2022 |
October 31, 2021 |
October 30, 2022 |
October 31, 2021 |
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Net sales |
$ |
147,126 |
$ |
145,277 |
$ |
411,541 |
$ |
427,823 | ||||
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Cost of goods sold (excluding depreciation and amortization) |
70,205 | 61,627 | 191,949 | 196,204 | ||||||||
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Gross profit |
76,921 | 83,650 | 219,592 | 231,619 | ||||||||
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Selling, general and administrative expenses |
84,311 | 78,792 | 224,044 | 211,779 | ||||||||
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Operating (loss) income |
(7,390) | 4,858 | (4,452) | 19,840 | ||||||||
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Interest expense |
968 | 900 | 2,723 | 3,390 | ||||||||
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Other income (loss), net |
56 | (265) | 180 | (193) | ||||||||
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(Loss) income before income taxes |
(8,302) | 3,693 | (6,995) | 16,257 | ||||||||
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Income tax (benefit) expense |
(2,059) | 930 | (1,770) | 4,048 | ||||||||
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Net (loss) income |
(6,243) | 2,763 | (5,225) | 12,209 | ||||||||
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Less: Net loss attributable to noncontrolling interest |
(26) | (43) | (82) | (134) | ||||||||
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Net (loss) income attributable to controlling interest |
$ |
(6,217) |
$ |
2,806 |
$ |
(5,143) |
$ |
12,343 | ||||
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Basic earnings per share (Class A and Class B): |
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Weighted average shares of common stock outstanding |
32,792 | 32,649 | 32,759 | 32,605 | ||||||||
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Net (loss) income per share attributable to controlling interest |
$ |
(0.19) |
$ |
0.09 |
$ |
(0.16) |
$ |
0.38 | ||||
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Diluted earnings per share (Class A and Class B): |
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Weighted average shares and equivalents outstanding |
32,792 | 32,761 | 32,759 | 32,825 | ||||||||
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Net (loss) income per share attributable to controlling interest |
$ |
(0.19) |
$ |
0.09 |
$ |
(0.16) |
$ |
0.38 | ||||
6
DULUTH HOLDINGS INC.
Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
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Nine Months Ended |
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October 30, 2022 |
October 31, 2021 |
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Cash flows from operating activities: |
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Net (loss) income |
$ |
(5,225) |
$ |
12,209 | ||
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Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation and amortization |
22,946 | 21,822 | ||||
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Stock based compensation |
2,000 | 1,612 | ||||
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Deferred income taxes |
(8) | (257) | ||||
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Loss on disposal of property and equipment |
40 | 404 | ||||
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Changes in operating assets and liabilities: |
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Receivables |
(1,011) | (2,863) | ||||
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Income taxes receivable |
(1,452) | (605) | ||||
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Inventory |
(82,045) | (16,026) | ||||
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Prepaid expense & other current assets |
(1,107) | (1,571) | ||||
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Software hosting implementation costs, net |
(318) | (2,939) | ||||
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Deferred catalog costs |
(1) | 379 | ||||
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Trade accounts payable |
34,719 | 24,944 | ||||
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Income taxes payable |
(6,814) | (7,579) | ||||
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Accrued expenses and deferred rent obligations |
(13,377) | 4,117 | ||||
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Other assets |
(436) | (918) | ||||
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Noncash lease impacts |
1,081 | 29 | ||||
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Net cash (used in) provided by operating activities |
(51,008) | 32,758 | ||||
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Cash flows from investing activities: |
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Purchases of property and equipment |
(24,245) | (9,108) | ||||
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Principal receipts from available-for-sale security |
120 | 108 | ||||
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Proceeds from disposals |
8 | 55 | ||||
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Net cash used in investing activities |
(24,117) | (8,945) | ||||
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Cash flows from financing activities: |
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Proceeds from line of credit |
10,000 | 5,000 | ||||
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Payments on line of credit |
— |
(5,000) | ||||
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Payments on delayed draw term loan |
— |
(48,250) | ||||
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Payments on TRI long term debt |
(509) | (457) | ||||
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Payments on finance lease obligations |
(2,015) | (1,894) | ||||
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Payments of tax withholding on vested restricted shares |
(457) | (370) | ||||
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Other |
462 | 327 | ||||
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Net cash provided by (used in) financing activities |
7,481 | (50,644) | ||||
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Decrease in cash and cash equivalents |
(67,644) | (26,831) | ||||
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Cash and cash equivalents at beginning of period |
77,051 | 47,221 | ||||
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Cash and cash equivalents at end of period |
$ |
9,407 |
$ |
20,390 | ||
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Supplemental disclosure of cash flow information: |
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Interest paid |
$ |
2,723 |
$ |
3,328 | ||
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Income taxes paid |
$ |
6,626 |
$ |
12,585 | ||
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Supplemental disclosure of non-cash information: |
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Unpaid liability to acquire property and equipment |
$ |
1,540 |
$ |
2,518 | ||
7
DULUTH HOLDINGS INC.
Reconciliation of Net Income (Loss) to EBITDA and EBITDA to Adjusted EBITDA
For the Fiscal Quarter and Nine Months Ended October 30, 2022 and October 31, 2021
(Unaudited)
(Amounts in thousands)
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Three Months Ended |
Nine Months Ended |
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October 30, 2022 |
October 31, 2021 |
October 30, 2022 |
October 31, 2021 |
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(in thousands) |
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Net (loss) income |
$ |
(6,243) |
$ |
2,763 |
$ |
(5,225) |
$ |
12,209 | ||||
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Depreciation and amortization |
7,572 | 7,306 | 22,946 | 21,822 | ||||||||
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Amortization of internal-use software hosting |
||||||||||||
|
subscription implementation costs |
783 | 478 | 2,203 | 1,252 | ||||||||
|
Interest expense |
968 | 900 | 2,723 | 3,390 | ||||||||
|
Income tax (benefit) expense |
(2,059) | 930 | (1,770) | 4,048 | ||||||||
|
EBITDA |
$ |
1,021 |
$ |
12,377 |
$ |
20,877 |
$ |
42,721 | ||||
|
Stock based compensation |
726 | 605 | 2,000 | 1,612 | ||||||||
|
Adjusted EBITDA |
$ |
1,747 |
$ |
12,982 |
$ |
22,877 |
$ |
44,333 | ||||
DULUTH HOLDINGS INC.
Reconciliation of Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA
For the Fiscal Year Ending January 29, 2023
(Unaudited)
(Amounts in thousands)
|
|
Low |
High |
||||
|
Forecasted |
||||||
|
Net income |
$ |
1,500 |
$ |
6,700 | ||
|
Depreciation and amortization |
30,000 | 30,200 | ||||
|
Amortization of internal-use software hosting subscription implementation costs |
3,100 | 3,100 | ||||
|
Interest expense |
3,900 | 3,800 | ||||
|
Income tax expense |
500 | 2,200 | ||||
|
EBITDA |
$ |
39,000 |
$ |
46,000 | ||
|
Stock based compensation |
3,000 | 3,000 | ||||
|
Adjusted EBITDA |
$ |
42,000 |
$ |
49,000 | ||
8