Charge -- -- 8,835 (800)
Loss on Early
Extinguishment
of Debt -- -- 141 --
Notable Items 785 556 6,479 564
Other Expense
(Income) 119 (28) 213 508
Adjusted EBITDA $ 22,114 $ 29,705 $ 90,201 $101,574
======================= ======= === ======= ======= === =======
Net Sales $134,038 $156,530 $462,170 $503,997
Net Income Margin -4.7% 0.5% 3.1% 3.6%
Adjusted EBITDA Margin 16.5% 19.0% 19.5% 20.2%
We define the Bank-adjusted EBITDA Leverage Ratio as Net Debt divided by our Bank-adjusted EBITDA for the trailing twelve-month ("TTM") period, as defined under our Credit Agreement entered into in November 2021, as amended, which is used in calculating covenant compliance.
TTM
September 29,
2024
------------------------------------------------- ------------------
Net Income $ 15,749
Adjustments:
Interest Expense, Net 58,029
Income Tax Expense (Benefit) 323
Depreciation 9,934
Amortization 13,824
-------------------------------------------------- -----------
EBITDA 97,859
Restructuring Costs 2,101
Change in Fair Value of Warrant Liability (8,975)
Change in Fair Value of Earn-Out Liability (2,127)
Equity-Based Compensation Expense 6,404
Write-down of Assets Held-for-Sale 7,505
Strategic Product Rationalization Charge 8,835
Gain on Early Extinguishment of Debt (560)
Notable Items 7,200
Other Expense 470
-------------------------------------------------- -----------
Adjusted EBITDA 118,712
Additional Permitted Charges 2,441
-------------------------------------------------- -----------
Adjusted EBITDA per Credit Agreement $ 121,153
================================================== ===========
Total Debt $ 565,126
Less: Permitted Cash and Cash Equivalents 50,000
-------------------------------------------------- -----------
Net Indebtedness per Credit Agreement $ 515,126
================================================== ===========
Bank-adjusted EBITDA Leverage Ratio 4.25 x
We define adjusted gross profit as gross profit excluding inventory charges primarily due to product rationalization initiatives that are part of a portfolio transformation aimed at eliminating unprofitable or slow-moving SKUs. We define Adjusted Gross Margin as Adjusted Gross Profit divided by net sales.
For the thirteen weeks For the thirty-nine weeks
ended ended
-------------------------- --------------------------
September September
29, October 1, 29, October 1,
2024 2023 2024 2023
---------------- ------- ------- ------- -------
Gross Profit $ 52,306 $ 58,374 $174,658 $195,835
Adjust for:
Strategic
Product
Rationalization
Charge -- -- 8,835 (800)
----------------- ------- ------- ------- -------
Adjusted Gross
Profit $ 52,306 $ 58,374 $183,493 $195,035
================= ======= ======= ======= =======
Net Sales $134,038 $156,530 $462,170 $503,997
Gross Margin 39.0% 37.3% 37.8% 38.9%
Adjusted Gross
Margin 39.0% 37.3% 39.7% 38.7%
We define Adjusted Net Income as earnings excluding the after-tax effect of changes in the fair value of the warrant liability, write-downs of assets held-for-sale, changes in the fair value of the earn-out liability, and gain or loss on the early extinguishment of debt. We define Adjusted Diluted EPS as Adjusted Net Income on a per share basis. Management uses these measures to focus on on-going operations and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present consolidated operating results. We believe that using this information, along with net income and net income per diluted share, provides for a more complete analysis of the results of operations.
For the thirteen weeks For the thirty-nine
ended weeks ended
---------------------- ----------------------
September October September October
29, 1, 29, 1,
2024 2023 2024 2023
------------------ ------ --------- ------ ---------
Net Income $ (6,288) $ 752 $ 14,547 $ 17,978
Special items:
Adjust for:
Change in Fair
Value of
Warrant
Liability (1,041) 2,064 (7,570) 5,516
Adjust for:
Change in Fair
Value of
Earn-Out
Liability (634) 700 (2,341) 2,089
Adjust for:
Write-down of
Assets
Held-for-Sale 7,505 -- 7,505 --
Adjust for:
Loss on Early
Extinguishment
of Debt -- -- 111 --
------------------ ------ -------- ------ --------
Adjusted Net Income $ (458) $ 3,516 $ 12,252 $ 25,583
=================== ====== ======== ====== ========
For the thirteen weeks For the thirty-nine
ended weeks ended
---------------------- ------------------------
September October October
29, 1, September 29, 1,
2024 2023 2024 2023
------------------ ------ --------- ----- ---------
Net Income per
Diluted Share $ (0.05) $ 0.01 $ 0.12 $ 0.15
Special items:
Adjust for:
Change in Fair
Value of
Warrant
Liability (0.01) 0.02 (0.06) 0.05
Adjust for:
Change in Fair
Value of
Earn-Out
Liability (0.01) 0.01 (0.02) 0.02
Adjust for:
Write-down of
Assets
Held-for-Sale 0.06 -- 0.06 --
Adjust for:
Loss on Early
Extinguishment
of Debt -- -- -- --
------------------ ------ -------- ----- --------
Adjusted Diluted
EPS $ (0.01) $ 0.04 $ 0.10 $ 0.22
=================== ====== ======== ===== ========
We define Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of dispositions. Management believes providing Free Cash Flow is useful for investors to understand our performance and results of cash generation after making capital investments required to support ongoing business operations.
For the thirteen For the thirty-nine
weeks ended weeks ended
--------------------- -----------------------
September October September
29, 1, 29, October 1,
2024 2023 2024 2023
-------------- ------ ------ ------ ------
Net Cash
Provided by
(Used in)
Operating
Activities $ (1,748) $22,480 $ 42,773 $56,863
Capital
Expenditures,
Net of
Dispositions (311) (743) (2,727) (3,125)
--------------- ------ ------ ------ ------
Free Cash Flow $ (2,059) $21,737 $ 40,046 $53,738
=============== ====== ====== ====== ======
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107801809/en/
CONTACT: Investor Relations:
Anthony Rozmus / Neel Sikka
Solebury Strategic Communications
203-428-3324
holley@soleburystrat.com
Media Relations Contacts:
Jordan Moore, jmoore@tinymightyco.com / Rachel Withers, rwithers@tinymightyco.com
Tiny Mighty Communications
615-454-2913
(END) Dow Jones Newswires
November 08, 2024 07:30 ET (12:30 GMT)
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