| Delaware (State or other jurisdiction of incorporation or organization) | | | 7299 (Primary Standard Industrial Classification Code Number) | | | 86-3150064 (I.R.S. Employer Identification Number) | |
| (617) 951-7000 | | | Marc D. Jaffe, Esq. Ian D. Schuman, Esq. Alison A. Haggerty, Esq. Latham & Watkins LLP 1271 Avenue of the Americas New York, New York 10020 (212) 906-1200 | |
| Large accelerated filer | | | ☐ | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☒ | | | Smaller reporting company | | | ☐ | |
| | | | | | | Emerging growth company | | | ☒ | |
| CALCULATION OF REGISTRATION FEE | | ||||||||||||||||
| Title of Each Class of Securities to be Registered | | | | Amount to be Registered(2) | | | | Proposed Maximum Offering Price per Share | | | | Proposed Maximum Aggregate Offering Price(1)(2) | | | | Amount of Registration Fee | |
| Class A common stock, par value $0.0001 per share | | | | 12,190,000 | | | | $18.00 | | | | $219,420,000 | | | | $23,939(3) | |
| | | Per Share | | | Total | | ||||||
| | | $ | | | | | $ | | | |||
Underwriting discount(1) | |||||||||||||
| | | $ | | | | | $ | | | |||
Proceeds, before expenses, to the selling stockholders | | | | $ | | | | | $ | | |
| BofA Securities | | |
| |
|
| | | | | 1 | | | |
| | | | | | | ||
| | | | | ||||
| | |||||||
| | | | | | | ||
| | | | | | | ||
| | | Thirteen Weeks Ended | | |||||||||||||||
(in thousands, except percentages and operating data) | | | June 26, 2021 (Estimated Low) | | | June 26, 2021 (Estimated High) | | | June 27, 2020 (Actual) | | |||||||||
Total revenue | | | | $ | 47,600 | | | | | $ | 47,800 | | | | | $ | 10,813 | | |
Net income (loss) | | | | $ | 7,000 | | | | | $ | 7,500 | | | | | $ | (11,372) | | |
Adjusted EBITDA | | | | $ | 18,500 | | | | | $ | 19,500 | | | | | $ | (1,079) | | |
Number of system-wide centers (at period end) | | | | | 815 | | | | | | 815 | | | | | | 774 | | |
System-wide sales | | | | $ | 216,000 | | | | | $ | 218,000 | | | | | $ | 40,252 | | |
Same-store sales(1) | | | | | 6.2% | | | | | | 6.7% | | | | | | (76.3)% | | |
New center openings | | | | | 7 | | | | | | 7 | | | | | | 8 | | |
Net debt(2) | | | | | 230,000 | | | | | | 235,000 | | | | | | 250,533 | | |
| | | Thirteen Weeks Ended | | |||||||||||||||
(in thousands) | | | June 26, 2021 (Estimated Low) | | | June 26, 2021 (Estimated High) | | | June 27, 2020 (Actual) | | |||||||||
Net income (loss) | | | | $ | 7,000 | | | | | $ | 7,500 | | | | | $ | (11,372) | | |
Interest expense | | | | | 4,500 | | | | | | 4,600 | | | | | | 4,485 | | |
Provision for income taxes | | | | | — | | | | | | — | | | | | | — | | |
Depreciation | | | | | 400 | | | | | | 400 | | | | | | 400 | | |
Amortization | | | | | 4,700 | | | | | | 4,800 | | | | | | 4,640 | | |
EBITDA | | | | $ | 16,600 | | | | | $ | 17,300 | | | | | $ | (1,847) | | |
Corporate headquarter relocation(1) | | | | | — | | | | | | — | | | | | | 63 | | |
Share-based compensation(2) | | | | | 250 | | | | | | 250 | | | | | | 419 | | |
IPO-related costs(3) | | | | | 1,600 | | | | | | 1,900 | | | | | | 100 | | |
Other compensation-related costs(4) | | | | | 50 | | | | | | 50 | | | | | | 186 | | |
Adjusted EBITDA | | | | $ | 18,500 | | | | | $ | 19,500 | | | | | $ | (1,079) | | |
| Assumed Initial Public Offering Price | | | Number of Shares of Class A Common Stock Outstanding | | | Number of Shares of Class B Common Stock Outstanding | | | Total Shares of Common Stock Outstanding | |
| $18.50 | | | 30,192,014 | | | 33,004,731 | | | 63,196,745 | |
| $17.50 | | | 30,357,169 | | | 33,120,422 | | | 63,477,591 | |
| $16.50 | | | 30,542,366 | | | 33,250,113 | | | 63,792,479 | |
| $15.50 | | | 30,751,489 | | | 33,396,509 | | | 64,147,998 | |
| $14.50 | | | 30,989,499 | | | 33,563,055 | | | 64,552,554 | |
(in thousands, except unit and per unit amounts) | | For the 13 Weeks Ended | | For the Year Ended | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | EWC Ventures Historical | | European Wax Center, Inc. Pro Forma (unaudited) | | | March 26, 2022 | | March 27, 2021 | | December 25, 2021 | | December 26, 2020 | | December 28, 2019 | | ||||||||||||||||||||||||||||||||||||||||||||||
| | Thirteen Weeks Ended | | Year Ended | | | Year Ended December 26, 2020 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share, per share and operating data) | | March 27, 2021 | | March 28, 2020 | | December 26, 2020 | | December 28, 2019 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Product sales | | | $ | 20,617 | | | | $ | 18,345 | | | | $ | 56,977 | | | | $ | 83,620 | | | | $ | 56,977 | | | | | $ | 24,778 | | | | $ | 20,617 | | | | $ | 99,740 | | | | $ | 56,977 | | | | $ | 83,620 | | | ||||||||||
Royalty fees | | | | 8,850 | | | | | 8,901 | | | | | 25,674 | | | | | 36,737 | | | | | 25,674 | | | | | | 11,385 | | | | | 8,850 | | | | | 43,648 | | | | | 25,674 | | | | | 36,737 | | | ||||||||||
Marketing fees | | | | 4,934 | | | | | 3,559 | | | | | 13,465 | | | | | 21,972 | | | | | 13,465 | | | | | | 6,450 | | | | | 4,934 | | | | | 24,610 | | | | | 13,465 | | | | | 21,972 | | | ||||||||||
Other revenues | | | | 2,256 | | | | | 2,018 | | | | | 7,291 | | | | | 11,868 | | | | | 7,291 | | | ||||||||||||||||||||||||||||||||||||
Other revenue | | | | 2,813 | | | | | 2,256 | | | | | 10,680 | | | | | 7,291 | | | | | 11,868 | | | ||||||||||||||||||||||||||||||||||||
Total revenue | | | | 36,657 | | | | | 32,823 | | | | | 103,407 | | | | | 154,197 | | | | | 103,407 | | | | | | 45,426 | | | | | 36,657 | | | | | 178,678 | | | | | 103,407 | | | | | 154,197 | | | ||||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
OPERATING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Cost of revenue | | | | 9,931 | | | | | 8,678 | | | | | 35,508 | | | | | 40,898 | | | | | 35,508 | | | | | | 11,991 | | | | | 9,931 | | | | | 46,841 | | | | | 35,508 | | | | | 40,898 | | | ||||||||||
Selling, general and administrative | | | | 11,066 | | | | | 10,378 | | | | | 38,997 | | | | | 64,967 | | | | | 48,794 | | | | | | 15,474 | | | | | 11,066 | | | | | 61,617 | | | | | 38,997 | | | | | 64,967 | | | ||||||||||
Advertising | | | | 4,884 | | | | | 3,688 | | | | | 11,495 | | | | | 21,132 | | | | | 11,495 | | | | | | 6,556 | | | | | 4,884 | | | | | 24,990 | | | | | 11,495 | | | | | 21,132 | | | ||||||||||
Depreciation and amortization | | | | 5,138 | | | | | 4,898 | | | | | 19,582 | | | | | 15,534 | | | | | 19,582 | | | | | | 5,060 | | | | | 5,138 | | | | | 20,333 | | | | | 19,582 | | | | | 15,534 | | | ||||||||||
Loss on disposal of assets and non-cancellable contracts | | | | — | | | | | — | | | | | 335 | | | | | 1,044 | | | | | 4,451 | | | ||||||||||||||||||||||||||||||||||||
Impairment of internally developed software | | | | — | | | | | — | | | | | — | | | | | — | | | | | 18,183 | | | ||||||||||||||||||||||||||||||||||||
Gain on sale of centers | | | | — | | | | | — | | | | | — | | | | | — | | | | | (2,120) | | | ||||||||||||||||||||||||||||||||||||
Total operating expenses | | | | 39,081 | | | | | 31,019 | | | | | 154,116 | | | | | 106,626 | | | | | 163,045 | | | ||||||||||||||||||||||||||||||||||||
Income (loss) from operations | | | | 6,345 | | | | | 5,638 | | | | | 24,562 | | | | | (3,219) | | | | | (8,848) | | | ||||||||||||||||||||||||||||||||||||
Interest expense | | | | 1,507 | | | | | 4,536 | | | | | 20,286 | | | | | 18,276 | | | | | 15,548 | | | ||||||||||||||||||||||||||||||||||||
Other Expense | | | | 785 | | | | | — | | | | | 195 | | | | | — | | | | | — | | | ||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | | | | 4,053 | | | | | 1,102 | | | | | 4,081 | | | | | (21,495) | | | | | (24,396) | | | ||||||||||||||||||||||||||||||||||||
Income tax expense | | | | 27 | | | | | — | | | | | 114 | | | | | — | | | | | — | | | ||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) | | | $ | 4,026 | | | | $ | 1,102 | | | | $ | 3,967 | | | | $ | (21,495) | | | | $ | (24,396) | | | ||||||||||||||||||||||||||||||||||||
Less: net income (loss) attributable to EWC Ventures, LLC prior to the Reorganization Transactions | | | | — | | | | | 1,102 | | | | | 10,327 | | | | | (21,495) | | | | | (24,396) | | | ||||||||||||||||||||||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | | | | 2,141 | | | | | — | | | | | (2,945) | | | | | — | | | | | — | | | ||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC. | | | $ | 1,885 | | | | $ | — | | | | $ | (3,415) | | | | $ | — | | | | $ | — | | |
| | | EWC Ventures Historical | | | European Wax Center, Inc. Pro Forma (unaudited) | | | ||||||||||||||||||||||||||
| | | Thirteen Weeks Ended | | | Year Ended | | | Year Ended December 26, 2020 | | | |||||||||||||||||||||||
(in thousands, except share, per share and operating data) | | | March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | | ||||||||||||||||||||
Loss on disposal of assets and non-cancellable contracts | | | | | — | | | | | | — | | | | | | 1,044 | | | | | | 4,451 | | | | | | 1,044 | | | | ||
Impairment of internally developed software | | | | | — | | | | | | — | | | | | | — | | | | | | 18,183 | | | | | | — | | | | ||
Gain on sale of centers | | | | | — | | | | | | — | | | | | | — | | | | | | (2,120) | | | | | | — | | | | ||
Total operating expenses | | | | | 31,019 | | | | | | 27,642 | | | | | | 106,626 | | | | | | 163,045 | | | | | | 116,423 | | | | ||
Income (loss) from operations | | | | | 5,638 | | | | | | 5,181 | | | | | | (3,219) | | | | | | (8,848) | | | | | | (13,016) | | | | ||
Interest expense | | | | | (4,536) | | | | | | (4,222) | | | | | | (18,276) | | | | | | (15,548) | | | | | | (8,151) | | | | | |
Net income (loss) | | | | $ | 1,102 | | | | | $ | 959 | | | | | $ | (21,495) | | | | | $ | (24,396) | | | | | $ | (21,167) | | | | ||
Net income (loss) attributable to non-controlling interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (11,033) | | | | ||
Net income (loss) attributable to European Wax Center, Inc. | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (10,134) | | | | ||
Earnings (loss) per share to Class A common stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.33) | | | | ||
Weighted average number of shares of Class A common stock used in computing earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 30,542,366 | | | | ||
Basic and diluted net income (loss) per unit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Class A Founders’ Units | | | | $ | 0.01 | | | | | $ | 0.03 | | | | | $ | (0.67) | | | | | $ | (0.70) | | | | | | | | | | ||
Class A Units | | | | $ | 0.01 | | | | | $ | 0.03 | | | | | $ | (0.67) | | | | | $ | (0.70) | | | | | | | | | | ||
Weighted average units outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||
Class A Founders’ Units | | | | | 8,309,193 | | | | | | 8,309,193 | | | | | | 8,309,193 | | | | | | 8,309,193 | | | | | |||||||
Class A Units | | | | | 26,323,027 | | | | | | 26,401,089 | | | | | | 26,401,089 | | | | | | 26,401,089 | | | | |
| | | EWC Ventures Historical | | | European Wax Center, Inc. Pro Forma (unaudited) | | ||||||||||||||||||||||||
(in thousands, except share, per share and operating data) | | | Thirteen Weeks Ended | | | Year Ended | | | Thirteen Weeks Ended March 27, 2021 | | |||||||||||||||||||||
| March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | ||||||||||||||||||||
Balance Sheet Data (at period end): | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Total assets | | | | $ | 617,564 | | | | | | | | | | | $ | 606,900 | | | | | $ | 576,479 | | | | | $ | 590,994 | | |
Total liabilities | | | | | 298,922 | | | | | | | | | | | | 288,877 | | | | | | 262,161 | | | | | | 231,761 | | |
Total debt, net | | | | | 265,130 | | | | | | | | | | | | 265,403 | | | | | | 225,279 | | | | | | 175,185 | | |
Cash Flow Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by operating activities | | | | $ | (1,987) | | | | | $ | 1,450 | | | | | $ | 1,397 | | | | | $ | 14,701 | | | | | | | | |
Net cash used in investing activities | | | | | (4,499) | | | | | | (29,512) | | | | | | (36,843) | | | | | | (40,694) | | | | | | | | |
Net cash (used in) provided by financing activities | | | | | (1,547) | | | | | | 29,706 | | | | | | 61,902 | | | | | | 27,807 | | | | | | | | |
Net (decrease) increase in cash | | | | | (8,033) | | | | | | 1,644 | | | | | | 26,456 | | | | | | 1,814 | | | | | | | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA(1) | | | | $ | 10,776 | | | | | $ | 10,079 | | | | | $ | 16,363 | | | | | $ | 6,686 | | | | | | | | |
Adjusted EBITDA(1) | | | | | 12,534 | | | | | | 11,712 | | | | | | 20,001 | | | | | | 34,005 | | | | | | | | |
Number of system-wide centers (at period end) | | | | | 808 | | | | | | 766 | | | | | | 796 | | | | | | 750 | | | | | | | | |
System-wide sales | | | | $ | 156,963 | | | | | $ | 158,004 | | | | | $ | 468,764 | | | | | $ | 687,402 | | | | | | | | |
Same-store sales(2) | | | | | (6.2)% | | | | | | (5.6)% | | | | | | (35.6)% | | | | | | 9.8% | | | | |||||
New center openings | | | | | 12 | | | | | | 16 | | | | | | 46 | | | | | | 38 | | | | | | | | |
AUV | | | | | | | | | | | | | | | | | 606 | | | | | | 940 | | | | | | | | |
(in thousands, except unit and per unit amounts) | | | For the 13 Weeks Ended | | | For the Year Ended | | ||||||||||||||||||||||||
| | | March 26, 2022 | | | March 27, 2021 | | | December 25, 2021 | | | December 26, 2020 | | | December 28, 2019 | | |||||||||||||||
Basic and diluted net loss per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic – Class A Common Stock | | | | $ | 0.06 | | | | | $ | — | | | | | $ | (0.11) | | | | | | — | | | | | | — | | |
Diluted – Class A Common Stock | | | | $ | 0.05 | | | | | $ | — | | | | | $ | (0.11) | | | | | | — | | | | | | — | | |
Basic and diluted weighted average shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic – Class A Common Stock | | | | | 36,953,534 | | | | | | — | | | | | | 32,234,507 | | | | | | — | | | | | | — | | |
Diluted – Class A Common Stock | | | | | 37,168,517 | | | | | | — | | | | | | 32,234,507 | | | | | | — | | | | | | — | | |
| | | Thirteen Weeks Ended March 26, 2022 | | | Year Ended | | ||||||||||||
(in thousands, except share, per share and operating data) | | | December 25, 2021 | | | December 26, 2020 | | ||||||||||||
Balance Sheet Data (at period end): | | | | | | | | | | | | | | | | | | | |
Total assets(1) | | | | $ | 619,279 | | | | | $ | 613,439 | | | | | | 606,900 | | |
Total liabilities(1) | | | | | 273,251 | | | | | | 272,198 | | | | | | 288,877 | | |
Total debt, net(1) | | | | | 177,206 | | | | | | 178,232 | | | | | | 265,403 | | |
Cash Flow Statement Data: | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in): | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 5,473 | | | | | $ | 41,346 | | | | | $ | 1,397 | | |
Investing activities | | | | | (303) | | | | | | (8,203) | | | | | | (36,843) | | |
Financing activities | | | | | (4,267) | | | | | | (26,562) | | | | | | 61,902 | | |
Net increase in cash | | | | | 903 | | | | | | 6,581 | | | | | | 26,456 | | |
Other Data: | | | | | | | | | | | | | | | | | | | |
EBITDA(2) | | | | $ | 10,620 | | | | | $ | 44,700 | | | | | $ | 16,363 | | |
Adjusted EBITDA(2) | | | | | 15,157 | | | | | | 64,125 | | | | | | 20,001 | | |
Number of system-wide centers (at period end) | | | | | 874 | | | | | | 853 | | | | | | 796 | | |
System-wide sales | | | | $ | 206,969 | | | | | $ | 796,507 | | | | | $ | 468,764 | | |
Same-store sales(3) | | | | | 29.0% | | | | | | 6.7% | | | | | | (35.6)% | | |
New center openings | | | | | 21 | | | | | | 57 | | | | | | 46 | | |
AUV | | | | | | | | | | $ | 966 | | | | | $ | 606 | | |
| | | EWC Ventures Historical | | |||||||||||||||||||||
| | | Thirteen Weeks Ended | | | Year Ended | | ||||||||||||||||||
(in thousands) | | | March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | ||||||||||||
Reconciliation of net income (loss) to EBITDA to Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | | | |||||
Net income (loss) | | | | $ | 1,102 | | | | | $ | 959 | | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Interest expense | | | | | 4,536 | | | | | | 4,222 | | | | | | 18,276 | | | | | | 15,548 | | |
Provision for income taxes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Depreciation | | | | | 428 | | | | | | 371 | | | | | | 1,649 | | | | | | 2,198 | | |
Amortization | | | | | 4,710 | | | | | | 4,527 | | | | | | 17,933 | | | | | | 13,336 | | |
EBITDA | | | | $ | 10,776 | | | | | $ | 10,079 | | | | | $ | 16,363 | | | | | $ | 6,686 | | |
Impairment of internally developed software(1) | | | | | — | | | | | | — | | | | | | — | | | | | | 18,183 | | |
Exit costs – lease abandonment(2) | | | | | — | | | | | | 159 | | | | | | 159 | | | | | | 778 | | |
Corporate headquarters relocation(3) | | | | | — | | | ��� | | | 483 | | | | | | 671 | | | | | | 6,097 | | |
Share-based compensation(4) | | | | | 298 | | | | | | 827 | | | | | | 2,052 | | | | | | 1,570 | | |
IPO-related costs(5) | | | | | 1,123 | | | | | | — | | | | | | 179 | | | | | | — | | |
Other compensation-related costs(6) | | | | | 337 | | | | | | 164 | | | | | | 577 | | | | | | 691 | | |
Adjusted EBITDA | | | | $ | 12,534 | | | | | $ | 11,712 | | | | | $ | 20,001 | | | | | $ | 34,005 | | |
| | | Thirteen Weeks Ended March 26, 2022 | | | Year Ended | | ||||||||||||
(in thousands) | | | December 25, 2021 | | | December 26, 2020 | | ||||||||||||
Net income (loss) | | | | $ | 4,026 | | | | | $ | 3,967 | | | | | $ | (21,495) | | |
Interest expense | | | | | 1,507 | | | | | | 20,286 | | | | | | 18,276 | | |
Provision for income taxes | | | | | 27 | | | | | | 114 | | | | | | — | | |
Depreciation and amortization | | | | | 5,060 | | | | | | 20,333 | | | | | | 19,582 | | |
EBITDA | | | | $ | 10,620 | | | | | $ | 44,700 | | | | | $ | 16,363 | | |
Exit costs – lease abandonment(1) | | | | | — | | | | | | — | | | | | | 159 | | |
Corporate headquarter relocation(2) | | | | | — | | | | | | — | | | | | | 671 | | |
Share-based compensation(3) | | | | | 3,335 | | | | | | 11,135 | | | | | | 2,052 | | |
IPO-related costs(4) | | | | | — | | | | | | 4,971 | | | | | | 179 | | |
| | | Thirteen Weeks Ended March 26, 2022 | | | Year Ended | | ||||||||||||
(in thousands) | | | December 25, 2021 | | | December 26, 2020 | | ||||||||||||
IPO-related compensation expense(5) | | | | | — | | | | | | 2,343 | | | | | | — | | |
Other compensation-related costs(6) | | | | | — | | | | | | 380 | | | | | | 577 | | |
Rmeasurement of tax receivable agreement liability(7) | | | | | 785 | | | | | | 195 | | | | | | — | | |
Other(8) | | | | | 417 | | | | | | 401 | | | | | | — | | |
Adjusted EBITDA | | | | $ | 15,157 | | | | | $ | 64,125 | | | | | $ | 20,001 | | |
|
| | | As of March 27, 2021 | | |||||||||||||||
(in thousands, except units) | | | EWC Ventures Actual | | | Pro Forma | | | Pro Forma As Adjusted | | |||||||||
Cash and cash equivalents | | | | $ | 28,687 | | | | | $ | 22,865 | | | | | $ | 4,845(1) | | |
Total indebtedness | | | | $ | 269,945 | | | | | $ | 269,945 | | | | | $ | 180,000 | | |
Mezzanine equity: | | | | | | | | | | | | | | | | | | | |
Class A Founders’ Units | | | | | 121,231 | | | | | | — | | | | | | — | | |
Class D Units | | | | | 24,909 | | | | | | — | | | | | | — | | |
Members’ / Stockholders’ equity: | | | | | | | | | | | | | | | | | | | |
Class A Units | | | | | 264,849 | | | | | | — | | | | | | — | | |
Class B Units | | | | | — | | | | | | — | | | | | | — | | |
Class C Units | | | | | — | | | | | | — | | | | | | — | | |
Class A common stock, par value $0.00001 per share | | | | | — | | | | | | — | | | | | | — | | |
Class B common stock, par value $0.00001 per share | | | | | — | | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | 142,169 | | | | | | 213,210 | | |
Accumulated deficit | | | | | (91,979) | | | | | | (35,693) | | | | | | (40,850) | | |
Accumulated other comprehensive loss | | | | | (368) | | | | | | (368) | | | | | | (368) | | |
Total members’ equity/stockholders’ equity | | | | | 318,642 | | | | | | 106,108 | | | | | | 171,992 | | |
Non-controlling interest | | | | | — | | | | | | 183,239 | | | | | | 187,241 | | |
Total equity | | | | | 318,642 | | | | | | 289,347 | | | | | | 359,233 | | |
Total capitalization | | | | $ | 588,587 | | | | | $ | 559,292 | | | | | $ | 539,233 | | |
| Assumed initial public offering price per share | | | | | | | | | | $ | 16.50 | | |
| Pro forma net tangible book value per share as of March 27, 2021(1) | | | | $ | (4.42) | | | | | | | | |
| Increase in pro forma net tangible book value per share attributable to new investors | | | | $ | 1.48 | | | | | | | | |
| Pro forma as adjusted net tangible book value per share after this offering(2) | | | | | | | | | | $ | (2.94) | | |
| Dilution in pro forma as adjusted net tangible book value per share to new investors | | | | | | | | | | $ | 19.44 | | |
| | | Shares of Class A Common Stock Purchased | | | Total Consideration | | | Average Price Per Share | | |||||||||||||||||||||
| | | Number | | | Percent | | | Amount | | | Percent | | ||||||||||||||||||
Existing stockholders | | | | | 54,757,377 | | | | | | 85.8% | | | | | $ | 372,102,819 | | | | | | 71.4% | | | | | $ | 6.80 | | |
New investors(1) | | | | | 9,035,102 | | | | | | 14.2% | | | | | $ | 149,079,183 | | | | | | 28.6% | | | | | | 16.50 | | |
Total | | | | | 63,792,479 | | | | | | 100% | | | | | $ | 521,182,002 | | | | | | 100% | | | | | $ | 8.17 | | |
(in thousands, except per share amounts) | | | EWC Ventures Historical | | | Reorganization Transaction Adjustments | | | As Adjusted Before this Offering | | | Adjustments for this Offering | | | European Wax Center, Inc. Pro Forma | | |||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales | | | | $ | 20,617 | | | | | $ | — | | | | | $ | 20,617 | | | | | $ | — | | | | | $ | 20,617 | | |
Royalty fees | | | | | 8,850 | | | | | | — | | | | | | 8,850 | | | | | | — | | | | | | 8,850 | | |
Marketing fees | | | | | 4,934 | | | | | | — | | | | | | 4,934 | | | | | | — | | | | | | 4,934 | | |
Other revenues | | | | | 2,256 | | | | | | — | | | | | | 2,256 | | | | | | — | | | | | | 2,256 | | |
Total revenue | | | | | 36,657 | | | | | | — | | | | | | 36,657 | | | | | | — | | | | | | 36,657 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 9,931 | | | | | | — | | | | | | 9,931 | | | | | | — | | | | | | 9,931 | | |
Selling, general and administrative | | | | | 11,066 | | | | | | 1,200(5) | | | | | | 12,266 | | | | | | — | | | | | | 12,266 | | |
Advertising | | | | | 4,884 | | | | | | — | | | | | | 4,884 | | | | | | — | | | | | | 4,884 | | |
Depreciation and amortization | | | | | 5,138 | | | | | | — | | | | | | 5,138 | | | | | | — | | | | | | 5,138 | | |
Total operating expenses | | | | | 31,019 | | | | | | 1,200 | | | | | | 32,219 | | | | | | — | | | | | | 32,219 | | |
Income (loss) from operations | | | | | 5,638 | | | | | | (1,200) | | | | | | 4,438 | | | | | | — | | | | | | 4,438 | | |
Interest expense | | | | | (4,536) | | | | | | — | | | | | | (4,536) | | | | | | 3,139(1) | | | | | | (1,397) | | |
Income (loss) before income taxes | | | | | 1,102 | | | | | | (1,200) | | | | | | (98) | | | | | | 3,139 | | | | | | 3,041 | | |
Income tax (benefit) expense | | | | | — | | | | | | —(2) | | | | | | — | | | | | | — | | | | | | — | | |
Net income (loss) | | | | $ | 1,102 | | | | | $ | (1,200) | | | | | $ | (98) | | | | | $ | 3,139 | | | | | $ | 3,041 | | |
Net income (loss) attributable to non-controlling interest | | | | | — | | | | | | (62)(3) | | | | | | (62) | | | | | | 1,647(3) | | | | | | 1,585 | | |
Net income (loss) attributable to European Wax Center, Inc. | | | | $ | 1,102 | | | | | $ | (1,138) | | | | | $ | (36) | | | | | $ | 1,492 | | | | | $ | 1,456 | | |
Pro forma net income (loss) per share data(4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) per share to Class A common stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.05 | | |
Weighted average number of Class A common shares used in computing earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 30,542,336 | | |
(In thousands, except per share amounts) | | | EWC Ventures Historical | | | Reorganization Transaction Adjustments | | | As Adjusted Before this Offering | | | Adjustments for this Offering | | | European Wax Center, Inc. Pro Forma | | |||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales | | | | $ | 56,977 | | | | | $ | — | | | | | $ | 56,977 | | | | | $ | — | | | | | $ | 56,977 | | |
Royalty fees | | | | | 25,674 | | | | | | — | | | | | | 25,674 | | | | | | — | | | | | | 25,674 | | |
Marketing fees | | | | | 13,465 | | | | | | — | | | | | | 13,465 | | | | | | — | | | | | | 13,465 | | |
Other revenues | | | | | 7,291 | | | | | | — | | | | | | 7,291 | | | | | | — | | | | | | 7,291 | | |
Total revenue | | | | | 103,407 | | | | | | — | | | | | | 103,407 | | | | | | — | | | | | | 103,407 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 35,508 | | | | | | — | | | | | | 35,508 | | | | | | — | | | | | | 35,508 | | |
Selling, general and administrative | | | | | 38,997 | | | | | | 7,797(5) | | | | | | 46,794 | | | | | | 2,000(6) | | | | | | 48,794 | | |
Advertising | | | | | 11,495 | | | | | | — | | | | | | 11,495 | | | | | | — | | | | | | 11,495 | | |
Depreciation and amortization | | | | | 19,582 | | | | | | — | | | | | | 19,582 | | | | | | — | | | | | | 19,582 | | |
Loss on disposal of assets and non-cancellable contracts | | | | | 1,044 | | | | | | — | | | | | | 1,044 | | | | | | — | | | | | | 1,044 | | |
Total operating expenses | | | | | 106,626 | | | | | | 7,797 | | | | | | 114,423 | | | | | | 2,000 | | | | | | 116,423 | | |
Loss from operations | | | | | (3,219) | | | | | | (7,797) | | | | | | (11,016) | | | | | | (2,000) | | | | | | (13,016) | | |
Interest expense | | | | | (18,276) | | | | | | — | | | | | | (18,276) | | | | | | 10,125(1) | | | | | | (8,151) | | |
Income (loss) before income taxes | | | | | (21,495) | | | | | | (7,797) | | | | | | (29,292) | | | | | | 8,125 | | | | | | (21,267) | | |
Income tax (benefit) expense | | | | | — | | | | | | —(2) | | | | | | — | | | | | | — | | | | | | — | | |
Net income (loss) | | | | $ | (21,495) | | | | | $ | (7,797) | | | | | $ | (29,292) | | | | | $ | 8,125 | | | | | $ | (21,267) | | |
Net income (loss) attributable to non-controlling interest | | | | | — | | | | | | (18,483)(3) | | | | | | (18,483) | | | | | | 7,450(3) | | | | | | (11,033) | | |
Net income (loss) attributable to European Wax Center, Inc. | | | | $ | (21,495) | | | | | $ | 10,686 | | | | | $ | (10,809) | | | | | $ | 675 | | | | | $ | (10,134) | | |
Pro forma net income (loss) per share data(4) | | | | | | | |||||||||||||||||||||||||
Earnings (loss) per share to Class A common stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.33) | | |
Weighted average number of Class A common shares used in computing earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 30,542,366 | | |
(in thousands, except unit/share amounts) | | | EWC Ventures Historical | | | Reorganization Transaction Adjustments | | | As Adjusted Before this Offering | | | Adjustments for this Offering | | | European Wax Center, Inc. Pro Forma | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 28,687 | | | | | $ | (5,822)(12) | | | | | $ | 22,865 | | | | | $ | (18,020)(1)(5)(13)(14) | | | | | $ | 4,845 | | |
Accounts receivable, net | | | | | 12,274 | | | | | | — | | | | | | 12,274 | | | | | | — | | | | | | 12,274 | | |
Inventory | | | | | 14,654 | | | | | | — | | | | | | 14,654 | | | | | | — | | | | | | 14,654 | | |
Prepaid expenses and other current assets | | | | | 8,432 | | | | | | — | | | | | | 8,432 | | | | | | (2,039)(4) | | | | | | 6,393 | | |
Advances to related parties | | | | | 689 | | | | | | (689) | | | | | | — | | | | | | — | | | | | | — | | |
Total current assets | | | | | 64,736 | | | | | | (6,511) | | | | | | 58,225 | | | | | | (20,059) | | | | | | 38,166 | | |
Property and equipment, net | | | | | 4,835 | | | | | | — | | | | | | 4,835 | | | | | | — | | | | | | 4,835 | | |
Intangible assets, net | | | | | 216,142 | | | | | | — | | | | | | 216,142 | | | | | | — | | | | | | 216,142 | | |
Goodwill | | | | | 328,551 | | | | | | — | | | | | | 328,551 | | | | | | — | | | | | | 328,551 | | |
Deferred tax asset | | | | | — | | | | | | —(2) | | | | | | — | | | | | | — | | | | | | — | | |
Other non-current assets | | | | | 3,300 | | | | | | — | | | | | | 3,300 | | | | | | — | | | | | | 3,300 | | |
Total assets | | | | $ | 617,564 | | | | | $ | (6,511) | | | | | $ | 611,053 | | | | | $ | (20,059) | | | | | $ | 590,994 | | |
Liabilities, Mezzanine Equity, and Members'/Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | $ | 23,832 | | | | | $ | — | | | | | $ | 23,832 | | | | | $ | — | | | | | $ | 23,832 | | |
Long term debt, current portion | | | | | 2,428 | | | | | | — | | | | | | 2,428 | | | | | | —(5) | | | | | | 2,428 | | |
Deferred revenues, current portion | | | | | 2,488 | | | | | | — | | | | | | 2,488 | | | | | | — | | | | | | 2,488 | | |
Other current liabilities | | | | | 181 | | | | | | — | | | | | | 181 | | | | | | — | | | | | | 181 | | |
Total current liabilities | | | | | 28,929 | | | | | | — | | | | | | 28,929 | | | | | | — | | | | | | 28,929 | | |
Long term debt, net | | | | | 262,702 | | | | | | — | | | | | | 262,702 | | | | | | (89,945)(5) | | | | | | 172,757 | | |
Deferred revenue, net of current portion | | | | | 6,601 | | | | | | — | | | | | | 6,601 | | | | | | — | | | | | | 6,601 | | |
Deferred tax liability | | | | | — | | | | | | —(2) | | | | | | — | | | | | | — | | | | | | — | | |
Tax receivable agreement liability | | | | | — | | | | | | 22,784(3) | | | | | | 22,784 | | | | | | — | | | | | | 22,784 | | |
Other long-term liabilities | | | | | 690 | | | | | | — | | | | | | 690 | | | | | | — | | | | | | 690 | | |
Total liabilities | | | | | 298,922 | | | | | | 22,784 | | | | | | 321,706 | | | | | | (89,945) | | | | | | 231,761 | | |
Mezzanine equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Founders’ Units (8,309,193 Class A Founders’ Units authorized, issued and outstanding as of March 27, 2021) | | | | | 121,231 | | | | | | (121,231)(7) | | | | | | — | | | | | | — | | | | | | — | | |
Class D Units (2,500,000 Class D Units authorized, issued and outstanding as of March 27, 2021, aggregate liquidation preference of $27,298 as of March 27, 2021) | | | | | 24,909 | | | | | | (24,909)(7) | | | | | | — | | | | | | — | | | | | | — | | |
Members’/ Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Members’ equity – Class A Units (26,311,170 Class A Units authorized, issued, and outstanding as of March 27, 2021) | | | | | 264,849 | | | | | | (264,849)(7) | | | | | | — | | | | | | — | | | | | | — | | |
Members’ equity – Class B Units (1 Class B Unit authorized, issued and outstanding as of March 27, 2021) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Members’ equity – Class C Units (1,000 Class C Units authorized, issued and outstanding as of March 27, 2021) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Class A common stock (600,000,000 shares authorized, 30,542,366 shares issued and outstanding, pro forma) | | | | | — | | | | | | —(7) | | | | | | — | | | | | | —(1) | | | | | | — | | |
Class B common stock (60,000,000 shares authorized, 33,250,113 shares issued and outstanding, pro forma) | | | | | — | | | | | | —(7) | | | | | | — | | | | | | —(10) | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | 142,169(10) | | | | | | 142,169 | | | | | | 71,041(13) | | | | | | 213,210 | | |
Accumulated deficit | | | | | (91,979) | | | | | | 56,286(11) | | | | | | (35,693) | | | | | | (5,157) | | | | | | (40,850) | | |
Accumulated other comprehensive loss | | | | | (368) | | | | | | — | | | | | | (368) | | | | | | — | | | | | | (368) | | |
Noncontrolling interests | | | | | — | | | | | | 183,239(8) | | | | | | 183,239 | | | | | | 4,002(9) | | | | | | 187,241 | | |
Total liabilities, mezzanine equity, and members’ / stockholders’ equity | | | | $ | 617,564 | | | | | $ | (6,511) | | | | | $ | 611,053 | | | | | $ | (20,059) | | | | | $ | 590,994 | | |
| | | | | | | | |
| Reorganization Transaction Adjustments:(8) | | | | | | | |
| Reclassification of historical Member’s Equity(7) | | | | $ | 259,325 | | |
| Reclassification Historical Deficit to NCI | | | | | (58,037) | | |
| Portion of the adjustments to income tax attributed to non controlling interest(2)(3) | | | | | (14,376) | | |
| Portion of final tax distributions allocated to non controlling interest(12) | | | | | (3,674) | | |
| Total Reorganization Transaction Adjustments: | | | | $ | 183,239 | | |
| | | As of March 27, 2021 | | |||
Reorganization Transaction Adjustments: | | | | | | | |
Net adjustment from recognition of deferred tax asset and Tax Receivable Agreement(2),(3) | | | | $ | (8,408) | | |
Reclassification of mezzanine and members equity to additional paid-in capital as a result of Reorganization Transactions(7) | | | | | 151,664 | | |
Equity-based compensation expense related to modification of certain pre-IPO equity-based awards in connection to the Reorganization Transactions | | | | | 1,751 | | |
Final tax distributions in connection to the Reorganization Transactions(12) | | | | | (2,837) | | |
Total Reorganization Transaction Adjustments: | | | | $ | 142,169 | | |
Adjustments for this Offering: | | | | | | | |
Gross proceeds from offering of Class A common stock(1) | | | | | 149,079 | | |
Payment of underwriting discounts and commissions and offering costs in connection with this offering(1) | | | | | (16,513) | | |
Reclassification of costs incurred in this offering from prepaid expenses and other current assets to additional paid-in capital(4) | | | | | (2,039) | | |
Adjustment for noncontrolling interest(9) | | | | | (4,002) | | |
Use of proceeds to purchase Class B and EWC Ventures Units | | | | | (55,484) | | |
Total Adjustments for this Offering: | | | | $ | 71,041 | | |
| | | | | | | |
Equity-based compensation expense related to modification of certain pre-IPO equity based awards in connection to the Reorganization Transactions | | | | $ | (1,751) | | |
Reclass Historical Deficit to NCI | | | | | 58,037 | | |
| | | | $ | 56,268 | | |
| | | Thirteen Weeks Ended | | | Year Ended | | ||||||||||||||||||
(in thousands, except operating data and percentages) | | | March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | ||||||||||||
Number of system-wide centers (at period end) | | | | | 808 | | | | | | 766 | | | | | | 796 | | | | | | 750 | | |
System-wide sales | | | | $ | 156,963 | | | | | $ | 158,004 | | | | | $ | 468,764 | | | | | $ | 687,402 | | |
Same-store sales(1) | | | | | (6.2)% | | | | | | (5.6)% | | | | | | (35.6)% | | | | | | 9.8% | | |
New center openings | | | | | 12 | | | | | | 16 | | | | | | 46 | | | | | | 38 | | |
AUV | | | | | | | | | | | | | | | | $ | 606 | | | | | $ | 940 | | |
| | | For the Thirteen Weeks Ended | | | $ Change | | | % Change | | |||||||||||||||
| March 27, 2021 | | | March 28, 2020 | | ||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales | | | | $ | 20,617 | | | | | $ | 18,345 | | | | | $ | 2,272 | | | | | | 12.4% | | |
Royalty fees | | | | | 8,850 | | | | | | 8,901 | | | | | | (51) | | | | | | -0.6% | | |
Marketing fees | | | | | 4,934 | | | | | | 3,559 | | | | | | 1,375 | | | | | | 38.6% | | |
Other revenue | | | | | 2,256 | | | | | | 2,018 | | | | | | 238 | | | | | | 11.8% | | |
Total revenue | | | | | 36,657 | | | | | | 32,823 | | | | | | 3,834 | | | | | | 11.7% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 9,931 | | | | | | 8,678 | | | | | | 1,253 | | | | | | 14.4% | | |
Selling, general and administrative | | | | | 11,066 | | | | | | 10,378 | | | | | | 688 | | | | | | 6.6% | | |
Advertising | | | | | 4,884 | | | | | | 3,688 | | | | | | 1,196 | | | | | | 32.4% | | |
Depreciation and amortization | | | | | 5,138 | | | | | | 4,898 | | | | | | 240 | | | | | | 4.9% | | |
Total operating expenses | | | | | 31,019 | | | | | | 27,642 | | | | | | 3,377 | | | | | | 12.2% | | |
Income from operations | | | | | 5,638 | | | | | | 5,181 | | | | | | 457 | | | | | | 8.8% | | |
Interest expense | | | | | (4,536) | | | | | | (4,222) | | | | | | (314) | | | | | | 7.4% | | |
Net income | | | | $ | 1,102 | | | | | $ | 959 | | | | | $ | 143 | | | | | | 14.9% | | |
| | | For the Years Ended | | | | | | | | | | | | | | |||||||||
| | | December 26, 2020 | | | December 28, 2019 | | | $ Change | | | % Change | | ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales | | | | $ | 56,977 | | | | | $ | 83,620 | | | | | $ | (26,643) | | | | | | -31.9% | | |
Royalty fees | | | | | 25,674 | | | | | | 36,737 | | | | | | (11,063) | | | | | | -30.1% | | |
Marketing fees | | | | | 13,465 | | | | | | 21,972 | | | | | | (8,507) | | | | | | -38.7% | | |
Other revenue | | | | | 7,291 | | | | | | 11,868 | | | | | | (4,577) | | | | | | -38.6% | | |
Total revenue | | | | | 103,407 | | | | | | 154,197 | | | | | | (50,790) | | | | | | -32.9% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 35,508 | | | | | | 40,898 | | | | | | (5,390) | | | | | | -13.2% | | |
Selling, general and administrative | | | | | 38,997 | | | | | | 64,967 | | | | | | (25,970) | | | | | | -40.0% | | |
Advertising | | | | | 11,495 | | | | | | 21,132 | | | | | | (9,637) | | | | | | -45.6% | | |
Depreciation and amortization | | | | | 19,582 | | | | | | 15,534 | | | | | | 4,048 | | | | | | 26.1% | | |
Loss on disposal of assets and non-cancellable contracts | | | | | 1,044 | | | | | | 4,451 | | | | | | (3,407) | | | | | | -76.5% | | |
Impairment of internally developed software | | | | | — | | | | | | 18,183 | | | | | | (18,183) | | | | | | -100.0% | | |
Gain on sale of centers | | | | | — | | | | | | (2,120) | | | | | | 2,120 | | | | | | -100.0% | | |
Total operating expenses | | | | | 106,626 | | | | | | 163,045 | | | | | | (56,419) | | | | | | -34.6% | | |
Loss from operations | | | | | (3,219) | | | | | | (8,848) | | | | | | 5,629 | | | | | | -63.6% | | |
Interest expense | | | | | (18,276) | | | | | | (15,548) | | | | | | (2,728) | | | | | | 17.5% | | |
Net loss | | | | $ | (21,495) | | | | | $ | (24,396) | | | | | $ | 2,901 | | | | | | -11.9% | | |
| | | For the Thirteen Weeks Ended | | | For the Years Ended | | ||||||||||||||||||
| | | March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales | | | | | 56.2% | | | | | | 55.9% | | | | | | 55.1% | | | | | | 54.2% | | |
Royalty fees | | | | | 24.1% | | | | | | 27.1% | | | | | | 24.8% | | | | | | 23.8% | | |
Marketing fees | | | | | 13.5% | | | | | | 10.8% | | | | | | 13.0% | | | | | | 14.2% | | |
Other revenue | | | | | 6.2% | | | | | | 6.2% | | | | | | 7.1% | | | | | | 7.7% | | |
Total revenue | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 27.1% | | | | | | 26.5% | | | | | | 34.3% | | | | | | 26.5% | | |
Selling, general and administrative | | | | | 30.2% | | | | | | 31.6% | | | | | | 37.7% | | | | | | 42.1% | | |
Advertising | | | | | 13.3% | | | | | | 11.2% | | | | | | 11.1% | | | | | | 13.7% | | |
Depreciation and amortization | | | | | 14.0% | | | | | | 14.9% | | | | | | 18.9% | | | | | | 10.1% | | |
Loss on disposal of assets and non-cancellable contracts | | | | | — | | | | | | — | | | | | | 1.0% | | | | | | 2.9% | | |
Impairment of internally developed software | | | | | — | | | | | | — | | | | | | — | | | | | | 11.8% | | |
Gain on sale of centers | | | | | — | | | | | | — | | | | | | — | | | | | | -1.4% | | |
Total operating expenses | | | | | 84.6% | | | | | | 84.2% | | | | | | 103.1% | | | | | | 105.7% | | |
Income (loss) from operations | | | | | 15.4% | | | | | | 15.8% | | | | | | -3.1% | | | | | | -5.7% | | |
Interest expense | | | | | -12.4% | | | | | | -12.9% | | | | | | -17.7% | | | | | | -10.1% | | |
Net income (loss) | | | | | 3.0% | | | | | | 2.9% | | | | | | -20.8% | | | | | | -15.8% | | |
| | | Thirteen Weeks Ended | | | Years Ended | | ||||||||||||||||||
(in thousands) | | | March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | ||||||||||||
Net income (loss) | | | | $ | 1,102 | | | | | $ | 959 | | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Interest expense | | | | | 4,536 | | | | | | 4,222 | | | | | | 18,276 | | | | | | 15,548 | | |
Provision for income taxes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Depreciation | | | | | 428 | | | | | | 371 | | | | | | 1,649 | | | | | | 2,198 | | |
Amortization | | | | | 4,710 | | | | | | 4,527 | | | | | | 17,933 | | | | | | 13,336 | | |
EBITDA | | | | $ | 10,776 | | | | | $ | 10,079 | | | | | $ | 16,363 | | | | | $ | 6,686 | | |
Impairment of internally developed software(1) | | | | | — | | | | | | — | | | | | | — | | | | | | 18,183 | | |
Exit costs – lease abandonment(2) | | | | | — | | | | | | 159 | | | | | | 159 | | | | | | 778 | | |
Corporate headquarter relocation(3) | | | | | — | | | | | | 483 | | | | | | 671 | | | | | | 6,097 | | |
Share-based compensation(4) | | | | | 298 | | | | | | 827 | | | | | | 2,052 | | | | | | 1,570 | | |
IPO-related costs(5) | | | | | 1,123 | | | | | | — | | | | | | 179 | | | | | | — | | |
Other compensation-related costs(6) | | | | | 337 | | | | | | 164 | | | | | | 577 | | | | | | 691 | | |
Adjusted EBITDA | | | | $ | 12,534 | | | | | $ | 11,712 | | | | | $ | 20,001 | | | | | $ | 34,005 | | |
| | | For the Thirteen Weeks Ended | | | For the Years Ended | | ||||||||||||||||||
(in thousands) | | | March 27, 2021 | | | March 28, 2020 | | | December 26, 2020 | | | December 28, 2019 | | ||||||||||||
Net cash (used in) provided by: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | (1,987) | | | | | $ | 1,450 | | | | | $ | 1,397 | | | | | $ | 14,701 | | |
Investing activities | | | | | (4,499) | | | | | | (29,512) | | | | | | (36,843) | | | | | | (40,694) | | |
Financing activities | | | | | (1,547) | | | | | | 29,706 | | | | | | 61,902 | | | | | | 27,807 | | |
Net (decrease) increase in cash | | | | $ | (8,033) | | | | | $ | 1,644 | | | | | $ | 26,456 | | | | | $ | 1,814 | | |
| | | All Centers | | |||
System-Wide Average at Maturity (Year 5) | | ||||||
Revenue | | | | $ | 1,028 | | |
EBITDA | | | | $ | 220 | | |
Cash-on-Cash Returns(1) | | | 60%+ | |
Name and Principal Position | | | Year | | | Salary ($)(1) | | | Bonus ($)(2) | | | Stock Awards ($)(3) | | | Non-Equity Incentive Plan Compensation ($)(4) | | | All Other Compensation ($) | | | Total Compensation ($) | | |||||||||||||||||||||
David Berg | | | | | 2020 | | | | | $ | 675,000 | | | | | | — | | | | | | — | | | | | $ | 161,750 | | | | | $ | 28,484(5) | | | | | $ | 865,234 | | |
Chief Executive Officer | | | | | | | | | |||||||||||||||||||||||||||||||||||
Gavin O’Connor | | | | | 2020 | | | | | $ | 335,343 | | | | | $ | 100,000 | | | | | $ | 209,949 | | | | | $ | 56,100 | | | | | $ | 20,583(6) | | | | | $ | 721,975 | | |
Chief Legal Officer & Corporate Secretary | | | | | | | | | |||||||||||||||||||||||||||||||||||
Jennifer Vanderveldt | | | | | 2020 | | | | | $ | 25,685 | | | | | $ | 100,000 | | | | | $ | 493,368 | | | | | | — | | | | | | — | | | | | $ | 619,053 | | |
Chief Financial Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name(1) | | | Grant Date | | | Number of Unvested Time-Vesting Class B Units (#) | | | Market value of Unvested Time-Vesting Class B Units ($) | | | Number of Unvested Performance- Vesting Class B Units (#) | | | Market value of Unvested Performance- Vesting Class B Units ($) | | ||||||||||||
David Berg(2)(3) | | | 10/15/18 | | | | | 644,108 | | | | | $ | 1,083,503 | | | | | | 185,408 | | | | | $ | 72,309 | | |
| | | 12/9/19 | | | | | — | | | | | | — | | | | | | 376,641 | | | | | $ | 146,890 | | |
Gavin O’Connor(4)(5) | | | 1/6/20 | | | | | 69,560 | | | | | $ | 142,597 | | | | | | 69,839 | | | | | $ | 50,092 | | |
Jennifer Vanderveldt(4)(6) | | | 12/7/20 | | | | | 140,064 | | | | | $ | 392,179 | | | | | | 141,122 | | | | | $ | 101,189 | | |
| | | Termination Without Cause | | | Termination For Good Reason | | | Termination Following a Change in Control Constituting a GA Exit | | | Change in Control Constituting a GA Exit | | ||||||||||||
David Berg | | | | | | | | | | | | | | | | | | | | | | | | | |
Base Salary | | | | $ | 675,000 | | | | | $ | 675,000 | | | | | $ | 675,000 | | | | | | — | | |
Bonus Payment | | | | $ | 161,750 | | | | | $ | 161,750 | | | | | $ | 161,750 | | | | | | — | | |
COBRA | | | | $ | 30,331 | | | | | $ | 30,331 | | | | | $ | 30,331 | | | | | | — | | |
Accrued PTO | | | | $ | 70,096 | | | | | $ | 70,096 | | | | | $ | 70,096 | | | | | | — | | |
Equity Awards | | | | | — | | | | | | — | | | | | $ | 1,083,503 | | | | | $ | 1,083,503 | | |
Total | | | | $ | 937,177 | | | | | $ | 937,177 | | | | | $ | 2,740,680 | | | | | $ | 1,083,503 | | |
Gavin O’Connor | | | | | | | | | | | | | | | | | | | | | | | | | |
Base Salary | | | | $ | 340,000 | | | | | $ | 340,000 | | | | | $ | 340,000 | | | | | | — | | |
Bonus Payment | | | | $ | 170,000 | | | | | $ | 170,000 | | | | | $ | 170,000 | | | | | | — | | |
COBRA | | | | $ | 47,247 | | | | | $ | 47,247 | | | | | $ | 47,247 | | | | | | — | | |
Accrued PTO | | | | $ | 35,308 | | | | | $ | 35,308 | | | | | $ | 35,308 | | | | | | — | | |
Equity Awards | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 592,555 | | | | | $ | 592,555 | | | | | $ | 592,555 | | | | | | — | | |
| | | Termination Without Cause | | | Termination For Good Reason | | | Termination Following a Change in Control Constituting a GA Exit | | | Change in Control Constituting a GA Exit | | ||||||||||||
Jennifer Vanderveldt | | | | | | | | | | | | | | | | | | | | | | | | | |
Base Salary | | | | $ | 375,000 | | | | | $ | 375,000 | | | | | $ | 375,000 | | | | | | — | | |
Bonus Payment | | | | $ | 187,500 | | | | | $ | 187,500 | | | | | $ | 187,500 | | | | | | — | | |
COBRA | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accrued PTO | | | | $ | 38,942 | | | | | $ | 38,942 | | | | | $ | 38,942 | | | | | | — | | |
Equity Awards | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 601,442 | | | | | $ | 601,442 | | | | | $ | 601,442 | | | | | | — | | |
| | | Class A Common Stock Owned Before this Offering (on a fully exchanged and converted basis)(1) | | | Shares of Class A Common Stock Being Offered (without option)(2) | | | Class A Common Stock Owned After this Offering (on a fully exchanged and converted basis)(1) | | | Class B Common Stock Owned Before this Offering | | | Class B Common Stock Owned After this Offering | | |||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner | | | Number | | | Percentage | | | Number | | | Percentage | | | Number | | | Percentage | | | Number | | | Percentage | | ||||||||||||||||||||||||||||||
5% Equityholders and Other Selling Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
General Atlantic Equityholders(3) | | | | | 27,677,201 | | | | | | 43.6% | | | | | | 4,185,000 | | | | | | 23,492,201 | | | | | | 37.0% | | | | | | 11,794,937 | | | | | | 44.7% | | | | | | 9,996,740 | | | | | | 41.2% | | |
EWC Founder Holdco(4) | | | | | 8,574,390 | | | | | | 13.5% | | | | | | — | | | | | | 8,574,390 | | | | | | 13.5% | | | | | | 8,574,388 | | | | | | 32.5% | | | | | | 8,574,388 | | | | | | 35.3% | | |
EWC Management Holdco(5) | | | | | 3,437,376 | | | | | | 5.4% | | | | | | — | | | | | | 3,122,376 | | | | | | 4.9% | | | | | | 3,437,376 | | | | | | 13.0% | | | | | | 3,122,376 | | | | | | 12.9% | | |
Jyoti Lynch(6) | | | | | 218,537 | | | | | | * | | | | | | 30,000 | | | | | | 188,537 | | | | | | * | | | | | �� | 212,537 | | | | | | * | | | | | | 182,537 | | | | | | * | | |
Christopher Kobus(6) | | | | | 204,641 | | | | | | * | | | | | | 45,000 | | | | | | 159,641 | | | | | | * | | | | | | 204,461 | | | | | | * | | | | | | 159,641 | | | | | | * | | |
Gavin O’Connor(6) | | | | | 89,765 | | | | | | * | | | | | | 5,000 | | | | | | 84,765 | | | | | | * | | | | | | 87,965 | | | | | | * | | | | | | 82,965 | | | | | | * | | |
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
David P. Berg(6) | | | | | 1,388,255 | | | | | | 2.2% | | | | | | 200,000 | | | | | | 1,188,255 | | | | | | 1.9% | | | | | | 1,388,255 | | | | | | 5.3% | | | | | | 1,188,255 | | | | | | 4.9% | | |
Jennifer C. Vanderveldt(6) | | | | | 77,000 | | | | | | * | | | | | | — | | | | | | 77,000 | | | | | | * | | | | | | 75,000 | | | | | | * | | | | | | 75,000 | | | | | | * | | |
David L. Willis(6) | | | | | 476,796 | | | | | | * | | | | | | 35,000 | | | | | | 441,796 | | | | | | * | | | | | | 464,796 | | | | | | 1.8% | | | | | | 429,796 | | | | | | 1.8% | | |
Alexa Bartlett | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew Crawford | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shaw Joseph | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dorvin D. Lively | | | | | 31,891 | | | | | | * | | | | | | — | | | | | | 31,891 | | | | | | * | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Laurie Ann Goldman | | | | | 12,391 | | | | | | * | | | | | | — | | | | | | 12,391 | | | | | | * | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nital Scott | | | | | 2,896 | | | | | | * | | | | | | — | | | | | | 2,896 | | | | | | * | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as a group (12 persons)(6) | | | | | 2,502,172 | | | | | | 3.9% | | | | | | 315,000 | | | | | | 2,187,172 | | | | | | 3.4% | | | | | | 2,433,194 | | | | | | 9.2% | | | | | | 2,118,194 | | | | | | 8.7% | | |
| | | Class A Common Stock Owned After Giving Effect to the Reorganization Transactions and Before this Offering (on a fully exchanged and converted basis)(1) | | | Shares of Class A Common Stock Being Offered (no option)(2) | | | Class A Common Stock Owned After Giving Effect to the Reorganization Transactions and this Offering (on a fully exchanged and converted basis)(1) | | | Voting Power(3) | | ||||||||||||||||||||||||||||||
Name of Beneficial Owner | | | Number | | | Percentage | | | Number | | | Percentage | | | Before this Offering Percentage | | | After this Offering Percentage | | ||||||||||||||||||||||||
5% Equityholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
General Atlantic Equityholders(4) | | | | | 37,540,081 | | | | | | 64.4% | | | | | | 1,564,898 | | | | | | 34,796,204 | | | | | | 54.5% | | | | | | 64.4% | | | | | | 54.5% | | |
EWC Founder Holdco(5) | | | | | 13,872,070 | | | | | | 23.8% | | | | | | — | | | | | | 11,878,526 | | | | | | 18.6% | | | | | | 23.8% | | | | | | 18.6% | | |
EWC Management Holdco(6) | | | | | 4,097,345 | | | | | | 7.0% | | | | | | — | | | | | | 4,022,373 | | | | | | 6.3% | | | | | | 7.0% | | | | | | 6.3% | | |
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
David P. Berg(7) | | | | | 1,456,013 | | | | | | 2.5% | | | | | | — | | | | | | 1,456,013 | | | | | | 2.3% | | | | | | 2.5% | | | | | | 2.3% | | |
Jennifer C. Vanderveldt(7) | | | | | 236,745 | | | | | | * | | | | | | — | | | | | | 236,745 | | | | | | * | | | | | | * | | | | | | * | | |
Gavin M. O’Connor(7) | | | | | 94,803 | | | | | | * | | | | | | — | | | | | | 94,803 | | | | | | * | | | | | | * | | | | | | * | | |
Alexa Bartlett | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew Crawford | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shaw Joseph | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dorvin D. Lively | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Laurie Ann Goldman | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as a group (12 persons)(7) | | | | | 3,102,503 | | | | | | 5.3% | | | | | | — | | | | | | 3,067,877 | | | | | | 4.8% | | | | | | 5.3% | | �� | | | | 4.8% | | |
| | | Class A Common Stock Owned Before this Offering (on a fully exchanged and converted basis)(1) | | | Shares of Class A Common Stock Being Offered (with option)(2) | | | Class A Common Stock Owned After thisOffering (on a fully exchanged and converted basis)(1) | | | Class B Common Stock Owned Before this Offering | | | Class B Common Stock Owned After this Offering | | |||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner | | | Number | | | Percentage | | | Number | | | Percentage | | | Number | | | Percentage | | | Number | | | Percentage | | ||||||||||||||||||||||||||||||
5% Equityholders and Other Selling Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
General Atlantic Equityholders(3) | | | | | 27,677,201 | | | | | | 43.6% | | | | | | 4,860,000 | | | | | | 22,817,201 | | | | | | 36.0% | | | | | | 11,794,937 | | | | | | 44.7% | | | | | | 9,706,709 | | | | | | 40.4% | | |
EWC Founder Holdco(4) | | | | | 8,574,390 | | | | | | 13.5% | | | | | | — | | | | | | 8,574,390 | | | | | | 13.5% | | | | | | 8,574,388 | | | | | | 32.5% | | | | | | 8,574,388 | | | | | | 35.7% | | |
EWC Management Holdco(5) | | | | | 3,437,376 | | | | | | 5.4% | | | | | | — | | | | | | 3,122,376 | | | | | | 4.9% | | | | | | 3,437,376 | | | | | | 13.0% | | | | | | 3,122,376 | | | | | | 13.0% | | |
Jyoti Lynch(6) | | | | | 218,537 | | | | | | * | | | | | | 30,000 | | | | | | 188,537 | | | | | | * | | | | | | 212,537 | | | | | | * | | | | | | 182,537 | | | | | | * | | |
Christopher Kobus(6) | | | | | 204,641 | | | | | | * | | | | | | 45,000 | | | | | | 159,641 | | | | | | * | | | | | | 204,461 | | | | | | * | | | | | | 159,641 | | | | | | * | | |
Gavin O’Connor(6) | | | | | 89,765 | | | | | | * | | | | | | 5,000 | | | | | | 84,765 | | | | | | * | | | | | | 87,965 | | | | | | * | | | | | | 82,965 | | | | | | * | | |
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
David P. Berg(6) | | | | | 1,388,255 | | | | | | 2.2% | | | | | | 200,000 | | | | | | 1,188,255 | | | | | | 1.9% | | | | | | 1,388,255 | | | | | | 5.3% | | | | | | 1,188,255 | | | | | | 5.0% | | |
Jennifer C. Vanderveldt(6) | | | | | 77,000 | | | | | | * | | | | | | — | | | | | | 77,000 | | | | | | * | | | | | | 75,000 | | | | | | * | | | | | | 75,000 | | | | | | * | | |
David L. Willis(6) | | | | | 476,796 | | | | | | * | | | | | | 35,000 | | | | | | 441,796 | | | | | | * | | | | | | 464,796 | | | | | | 1.8% | | | | | | 429,796 | | | | | | 1.8% | | |
Alexa Bartlett | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew Crawford | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shaw Joseph | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dorvin D. Lively | | | | | 31,891 | | | | | | * | | | | | | — | | | | | | 31,891 | | | | | | * | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Laurie Ann Goldman | | | | | 12,391 | | | | | | * | | | | | | — | | | | | | 12,391 | | | | | | * | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nital Scott | | | | | 2,896 | | | | | | * | | | | | | — | | | | | | 2,896 | | | | | | * | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as a group (12 persons)(6) | | | | | 2,502,172 | | | | | | 3.9% | | | | | | 315,000 | | | | | | 2,187,172 | | | | | | 3.4% | | | | | | 2,433,194 | | | | | | 9.2% | | | | | | 2,118,194 | | | | | | 8.8% | | |
| | | Class A Common Stock Owned After Giving Effect to the Reorganization Transactions and Before this Offering (on a fully exchanged and converted basis)(1) | | | Shares of Class A Common Stock Being Offered (with option)(2) | | | Class A Common Stock Owned After Giving Effect to the Reorganization Transactions and this Offering (on a fully exchanged and converted basis)(1) | | | Voting Power(3) | | ||||||||||||||||||||||||||||||
Name of Beneficial Owner | | | Number | | | Percentage | | | Number | | | Percentage | | | Before this Offering Percentage | | | After this Offering Percentage | | ||||||||||||||||||||||||
5% Equityholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
General Atlantic Equityholders(4) | | | | | 37,540,081 | | | | | | 64.4% | | | | | | 2,206,622 | | | | | | 33,617,010 | | | | | | 52.8% | | | | | | 64.4% | | | | | | 52.8% | | |
EWC Founder Holdco (5) | | | | | 13,872,070 | | | | | | 23.8% | | | | | | — | | | | | | 11,494,412 | | | | | | 18.0% | | | | | | 23.8% | | | | | | 18.0% | | |
EWC Management Holdco(6) | | | | | 4,097,345 | | | | | | 7.0% | | | | | | — | | | | | | 4,022,373 | | | | | | 6.3% | | | | | | 7.0% | | | | | | 6.3% | | |
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
David P. Berg(7) | | | | | 1,456,013 | | | | | | 2.5% | | | | | | — | | | | | | 1,456,013 | | | | | | 2.3% | | | | | | 2.5% | | | | | | 2.3% | | |
Jennifer C. Vanderveldt(7) | | | | | 236,745 | | | | | | * | | | | | | — | | | | | | 236,745 | | | | | | * | | | | | | * | | | | | | * | | |
Gavin M. O’Connor(7) | | | | | 94,803 | | | | | | * | | | | | | — | | | | | | 94,803 | | | | | | * | | | | | | * | | | | | | * | | |
Alexa Bartlett | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew Crawford | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shaw Joseph | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dorvin D. Lively | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Laurie Ann Goldman | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as a group (12 persons)(7) | | | | | 3,102,503 | | | | | | 5.3% | | | | | | — | | | | | | 3,067,877 | | | | | | 4.8% | | | | | | 5.3% | | | | | | 4.8% | | |
Name | | | EWC Ventures Units to be Issued in the Reorganization Transactions | | | Class A Common Stock to be Issued in the Reorganization Transactions | | | Class B Common Stock to be Issued in the Reorganization Transactions | | |||||||||
General Atlantic Equityholders | | | | | 16,032,817 | | | | | | 21,507,264 | | | | | | 16,032,817 | | |
EWC Founder Holdco | | | | | 13,872,070 | | | | | | — | | | | | | 13,872,070 | | |
EWC Management Holdco | | | | | 4,097,345 | | | | | | — | | | | | | 4,097,345 | | |
David P. Berg(1) | | | | | 1,456,013 | | | | | | — | | | | | | 1,456,013 | | |
Jennifer C. Vanderveldt(1) | | | | | 236,745 | | | | | | — | | | | | | 236,745 | | |
David L. Willis(1) | | | | | 524,049 | | | | | | — | | | | | | 524,049 | | |
Gavin M. O’Connor(1) | | | | | 94,803 | | | | | | — | | | | | | 94,803 | | |
Christopher K. Kobus(1) | | | | | 219,587 | | | | | | — | | | | | | 219,587 | | |
Jyoti A. Lynch(1) | | | | | 219,587 | | | | | | — | | | | | | 219,607 | | |
Jean M. Grossman(1) | | | | | 145,546 | | | | | | — | | | | | | 145,546 | | |
Name | | | Number of EWC Ventures Units and corresponding shares of our Class B common stock to be sold to us (no option) | | | Cash proceeds (no option) ($ in millions) | | | Number of EWC Ventures Units and corresponding shares of our Class B common stock to be sold to us (with option) | | | Cash proceeds (with option) ($ in millions) | | ||||||||||||
General Atlantic Equityholders | | | | | 1,178,979 | | | | | $ | 18.1 | | | | | | 1,662,449 | | | | | $ | 25.5 | | |
EWC Founder Holdco | | | | | 936,688 | | | | | | 14.4 | | | | | | 1,320,800 | | | | | | 20.3 | | |
Underwriter | | | Number of Shares | | |||
| | | | | | | |
| | | | | | | |
Jefferies LLC | | | | | |||
| | ||||||
Total | | | | | | |
| | | Total | | |||||||||||||||||||||
| | | Per Share | | | No Exercise | | | Full Exercise | | |||||||||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | |||||||||
Underwriting discounts and commissions to be paid by | |||||||||||||||||||||||||
| | | $ | | | | | $ | | | | | $ | ||||||||||||
| | ||||||||||||||||||||||||
Proceeds, before expenses, to selling stockholders | | | | $ | | | | | $ | | | | | $ | | |
| | | April 1, 2021 | | |||
Cash | | | | $ | 100 | | |
Assets | | | | $ | 100 | | |
Stockholder’s equity | | | | | | | |
Common stock, par value $0.00001 per share, 1,000 shares authorized, 100 shares outstanding | | | | $ | 0 | | |
Additional paid-in capital | | | | | 100 | | |
Total stockholder’s equity | | | | $ | 100 | | |
| | | December 26, 2020 | | | December 28, 2019 | | | | ||||||||||
ASSETS | | | | | | | | ||||||||||||
Current assets: | | | | | | | | | | | | | | | | ||||
Cash and cash equivalents | | | | $ | 36,720 | | | | | $ | 10,264 | | | | | ||||
Accounts receivable, net | | | | | 5,070 | | | | | | 6,791 | | | | | ||||
Inventory | | | | | 10,280 | | | | | | 22,037 | | | | | ||||
Prepaid expenses and other current assets | | | | | 4,574 | | | | | | 2,084 | | | | | ||||
Advances to related parties | | | | | 689 | | | | | | 811 | | | | | ||||
Total current assets | | | | | 57,333 | | | | | | 41,987 | | | | | ||||
Property and equipment, net | | | | | 5,039 | | | | | | 4,456 | | | | | ||||
Intangible assets, net | | | | | 213,267 | | | | | | 198,410 | | | | | ||||
Goodwill | | | | | 328,551 | | | | | | 328,551 | | | | | ||||
Other non-current assets | | | | | 2,710 | | | | | | 3,075 | | | | | ||||
Total assets | | | | $ | 606,900 | | | | | $ | 576,479 | | | | | ||||
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS’ EQUITY | | | | ||||||||||||||||
Current liabilities: | | | | | | | | | | | | | | | | ||||
Accounts payable and accrued liabilities | | | | $ | 13,489 | | | | | $ | 25,053 | | | | | ||||
Long-term debt, current portion | | | | | 2,428 | | | | | | 2,285 | | | | | ||||
Deferred revenue, current portion | | | | | 2,351 | | | | | | 2,458 | | | | | ||||
Other current liabilities | | | | | 181 | | | | | | 179 | | | | | ||||
Total current liabilities | | | | | 18,449 | | | | | | 29,975 | | | | | ||||
Long-term debt, net | | | | | 262,975 | | | | | | 222,994 | | | | | ||||
Deferred revenue, net of current portion | | | | | 6,528 | | | | | | 6,799 | | | | | ||||
Other long-term liabilities | | | | | 925 | | | | | | 2,393 | | | | | ||||
Total liabilities | | | | | 288,877 | | | | | | 262,161 | | | | | ||||
Commitments and contingencies (Note 12) | | | | | | | | | | | | | | | | ||||
Mezzanine equity: | | | | | | | | | | | | | | | | ||||
Class A Founders’ Units (8,309,193 Class A Founders’ Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019) | | | | | 89,240 | | | | | | 104,280 | | | | | ||||
Class D Units (2,500,000 and 0 Class D Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019, respectively; aggregate liquidation preference of $26,670 and 0 as of December 26, 2020 and December 28, 2019, respectively) | | | | | 24,909 | | | | | | — | | | | | ||||
Members’ equity: | | | | | | | | | | | | | | | | ||||
Class A Units (26,401,089 Class A Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019) | | | | | 265,791 | | | | | | 265,791 | | | | | ||||
Class B Unit (1 Class B Unit authorized, issued and outstanding as of December 26, 2020 and December 28, 2019) | | | | | — | | | | | | — | | | | | ||||
Class C Units (1,000 Class C Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019) | | | | | — | | | | | | — | | | | | ||||
Additional paid-in capital | | | | | 83 | | | | | | — | | | | | ||||
Accumulated deficit | | | | | (61,473) | | | | | | (55,018) | | | | | ||||
Accumulated other comprehensive loss | | | | | (527) | | | | | | (735) | | | | | ||||
Total liabilities, mezzanine equity, and members’ equity | | | | $ | 606,900 | | | | | $ | 576,479 | | | | |
| | | For the Years Ended | | |||||||||
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
REVENUE | | | | | | | | | | | | | |
Product sales | | | | $ | 56,977 | | | | | $ | 83,620 | | |
Royalty fees | | | | | 25,674 | | | | | | 36,737 | | |
Marketing fees | | | | | 13,465 | | | | | | 21,972 | | |
Other revenue | | | | | 7,291 | | | | | | 11,868 | | |
Total revenue | | | | | 103,407 | | | | | | 154,197 | | |
OPERATING EXPENSES | | | | | | | | | | | | | |
Cost of revenue | | | | | 35,508 | | | | | | 40,898 | | |
Selling, general and administrative(1) | | | | | 38,997 | | | | | | 64,967 | | |
Advertising | | | | | 11,495 | | | | | | 21,132 | | |
Depreciation and amortization | | | | | 19,582 | | | | | | 15,534 | | |
Loss on disposal of assets and non-cancellable contracts | | | | | 1,044 | | | | | | 4,451 | | |
Impairment of internally developed software | | | | | — | | | | | | 18,183 | | |
Gain on sale of centers | | | | | — | | | | | | (2,120) | | |
Total operating expenses | | | | | 106,626 | | | | | | 163,045 | | |
Loss from operations | | | | | (3,219) | | | | | | (8,848) | | |
Interest expense | | | | | (18,276) | | | | | | (15,548) | | |
NET LOSS | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Items included in other comprehensive loss: | | | | | | | | | | | | | |
Unrealized gain (loss) on cash flow hedge | | | | | 208 | | | | | | (405) | | |
TOTAL COMPREHENSIVE LOSS | | | | $ | (21,287) | | | | | $ | (24,801) | | |
Basic and diluted net loss per unit | | | | | | | | | | | | | |
Class A Founders’ Units | | | | $ | (0.67) | | | | | $ | (0.70) | | |
Class A Units | | | | $ | (0.67) | | | | | $ | (0.70) | | |
Weighted average units outstanding | | | | | | | | | | | | | |
Class A Founders’ Units | | | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units | | | | | 26,401,089 | | | | | | 26,401,089 | | |
| | ||||||||||||
(1) Includes the following amounts paid to related parties, see Note 17 | | | | $ | 200 | | | | | $ | 200 | | |
| | | For the Years Ended | | |||||||||
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 19,582 | | | | | | 15,534 | | |
Impairment of internally developed software | | | | | — | | | | | | 18,183 | | |
Loss on noncancellable contracts | | | | | 1,085 | | | | | | 2,532 | | |
(Gain) loss on disposal of property and equipment | | | | | (41) | | | | | | 1,920 | | |
Amortization of deferred financing costs | | | | | 1,284 | | | | | | 1,138 | | |
Loss on write down of obsolete inventory | | | | | 6,656 | | | | | | 552 | | |
Gain on sale of centers | | | | | — | | | | | | (2,120) | | |
Equity compensation | | | | | 2,052 | | | | | | 1,570 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 1,721 | | | | | | 1,096 | | |
Inventory | | | | | 5,101 | | | | | | (5,355) | | |
Prepaid expenses and other assets | | | | | (2,124) | | | | | | (435) | | |
Accounts payable and accrued liabilities | | | | | (10,499) | | | | | | 2,076 | | |
Deferred revenue | | | | | (666) | | | | | | 1,250 | | |
Other long-term liabilities | | | | | (1,259) | | | | | | 1,156 | | |
Net cash provided by operating activities | | | | | 1,397 | | | | | | 14,701 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (2,158) | | | | | | (9,343) | | |
Reacquisition of area representative rights | | | | | (34,685) | | | | | | (33,189) | | |
Cash received for sale of centers | | | | | — | | | | | | 1,838 | | |
Net cash used in investing activities | | | | | (36,843) | | | | | | (40,694) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds on long-term debt | | | | | 15,000 | | | | | | 40,000 | | |
Principal payments on long-term debt | | | | | (2,397) | | | | | | (2,050) | | |
Proceeds on line of credit | | | | | 27,000 | | | | | | — | | |
Payments on line of credit | | | | | — | | | | | | (3,500) | | |
Deferred loan costs | | | | | (763) | | | | | | (638) | | |
Contributions from members | | | | | 24,909 | | | | | | — | | |
Distributions to members | | | | | (1,847) | | | | | | (5,194) | | |
Advances to related parties, net | | | | | — | | | | | | (811) | | |
Net cash provided by financing activities | | | | | 61,902 | | | | | | 27,807 | | |
Net increase in cash | | | | | 26,456 | | | | | | 1,814 | | |
Cash, beginning of period | | | | | 10,264 | | | | | | 8,450 | | |
Cash, end of period | | | | $ | 36,720 | | | | | $ | 10,264 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | 16,469 | | | | | $ | 17,342 | | |
Non-cash investing activities: | | | | | | | | | | | | | |
Property purchased included in accounts payable and accrued liabilities | | | | $ | 33 | | | | | $ | 148 | | |
Reacquired rights purchased included in accounts payable and accrued liabilities | | | | $ | — | | | | | $ | 2,183 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Non-cash equity distributions | | | | $ | 122 | | | | | $ | — | | |
| | | MEZZANINE EQUITY | | | | MEMBERS’ EQUITY | | | Additional paid-in capital | | | Accumulated deficit | | | Accumulated other comprehensive loss | | | Total members’ equity | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Founders’ Units | | | Class D Units | | | | Class A Units | | | Class B Units | | | Class C Units | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | | | Amount | | | Units | | | Amount | | | | Units | | | Amount | | | Units | | | Amount | | | Units | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 29, 2018 | | | | | 8,309,193 | | | | | $ | 83,652 | | | | | | — | | | | | $ | — | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (6,170) | | | | | $ | (330) | | | | | $ | 259,291 | | |
Equity compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,570 | | | | | | — | | | | | | — | | | | | | 1,570 | | |
Distributions | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,570) | | | | | | (3,624) | | | | | | — | | | | | | (5,194) | | |
Unrealized loss on cash flow hedge | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (405) | | | | | | (405) | | |
Cumulative impact of ASC 606 adoption | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (200) | | | | | | — | | | | | | (200) | | |
Accretion of Class A Founders’ Units to redemption value | | | | | — | | | | | | 20,628 | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (20,628) | | | | | | — | | | | | | (20,628) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,396) | | | | | | — | | | | | | (24,396) | | |
Balance at December 28, 2019 | | | | | 8,309,193 | | | | | $ | 104,280 | | | | | | — | | | | | $ | — | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (55,018) | | | | | $ | (735) | | | | | $ | 210,038 | | |
Equity compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,052 | | | | | | — | | | | | | — | | | | | | 2,052 | | |
Contributions from members, net of issuance costs of $91 | | | | | — | | | | | | — | | | | | | 2,500,000 | | | | | | 24,909 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Distributions | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,969) | | | | | | — | | | | | | — | | | | | | (1,969) | | |
Unrealized gain on cash flow hedge | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 208 | | | | | | 208 | | |
Accretion of Class A Founders’ Units to redemption value | | | | | — | | | | | | (15,040) | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,040 | | | | | | — | | | | | | 15,040 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (21,495) | | | | | | — | | | | | | (21,495) | | |
Balance at December 26, 2020 | | | | | 8,309,193 | | | | | $ | 89,240 | | | | | | 2,500,000 | | | | | $ | 24,909 | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | 83 | | | | | $ | (61,473) | | | | | $ | (527) | | | | | $ | 203,874 | | |
| | | Fair Market Value | | | Quoted prices in active markets for identical assets (Level 1) | | | Significant observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | | Change in fair value included in comprehensive income | | |||||||||||||||
Interest rate cap | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
December 26, 2020 | | | | $ | (527) | | | | | $ | — | | | | | $ | (527) | | | | | $ | — | | | | | $ | 208 | | |
December 28, 2019 | | | | $ | (735) | | | | | $ | — | | | | | $ | (735) | | | | | $ | — | | | | | $ | (405) | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Prepaid inventory | | | | $ | 2,000 | | | | | $ | — | | |
Prepaid other & other current assets | | | | | 2,574 | | | | | | 2,084 | | |
Total | | | | $ | 4,574 | | | | | $ | 2,084 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Balance beginning of year | | | | $ | 1,229 | | | | | $ | 1,042 | | |
Charged to costs and expenses | | | | | 6,656 | | | | | | 552 | | |
Write-offs of reserved inventory | | | | | (1,286) | | | | | | (365) | | |
Balance end of year | | | | $ | 6,599 | | | | | $ | 1,229 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Computer and other equipment | | | | $ | 487 | | | | | $ | 184 | | |
Computer software | | | | | 8,700 | | | | | | 6,653 | | |
Furniture and fixtures | | | | | 974 | | | | | | 1,124 | | |
Leasehold improvements | | | | | 2,433 | | | | | | 2,702 | | |
| | | | | 12,594 | | | | | | 10,663 | | |
Less: accumulated depreciation and amortization | | | | | (7,645) | | | | | | (6,377) | | |
| | | | | 4,949 | | | | | | 4,286 | | |
Construction-in-process | | | | | — | | | | | | 125 | | |
Software implementation-in-process | | | | | 90 | | | | | | 45 | | |
Total property and equipment, net | | | | $ | 5,039 | | | | | $ | 4,456 | | |
| | | December 26, 2020 | | |||||||||||||||||||||
| | | Weighted Average Remaining Useful Life (Years) | | | Gross Carrying Value | | | Accumulated Amortization | | | Net Carrying Value | | ||||||||||||
Franchisee relationships | | | | | 7.74 | | | | | $ | 114,594 | | | | | $ | (25,870) | | | | | $ | 88,724 | | |
Reacquired rights | | | | | 9.19 | | | | | | 68,973 | | | | | | (8,304) | | | | | | 60,669 | | |
Favorable lease assets | | | | | 1.24 | | | | | | 170 | | | | | | (110) | | | | | | 60 | | |
| | | | | | | | | | | 183,737 | | | | | | (34,284) | | | | | | 149,453 | | |
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name | | | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets | | | | | | | | | | $ | 247,551 | | | | | $ | (34,284) | | | | | $ | 213,267 | | |
Goodwill | | | | | | | | | | $ | 328,551 | | | | | $ | — | | | | | $ | 328,551 | | |
| | | December 28, 2019 | | |||||||||||||||||||||
| | | Weighted Average Remaining Useful Life (Years) | | | Gross Carrying Value | | | Accumulated Amortization | | | Net Carrying Value | | ||||||||||||
Franchisee relationships | | | | | 8.74 | | | | | $ | 114,594 | | | | | $ | (14,442) | | | | | $ | 100,152 | | |
Reacquired rights | | | | | 9.92 | | | | | | 36,182 | | | | | | (1,847) | | | | | | 34,335 | | |
Favorable lease assets | | | | | 2.24 | | | | | | 170 | | | | | | (61) | | | | | | 109 | | |
| | | | | | | | | | | 150,946 | | | | | | (16,350) | | | | | | 134,596 | | |
| | | December 28, 2019 | | |||||||||||||||||||||
| | | Weighted Average Remaining Useful Life (Years) | | | Gross Carrying Value | | | Accumulated Amortization | | | Net Carrying Value | | ||||||||||||
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name | | | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets | | | | | | | | | | $ | 214,760 | | | | | $ | (16,350) | | | | | $ | 198,410 | | |
Goodwill | | | | | | | | | | $ | 328,551 | | | | | $ | — | | | | | $ | 328,551 | | |
|
| | | | | |||||||||||||||
Fiscal Years Ending | | | Franchisee Relationships | | | Reacquired Rights | | | Favorable Lease Assets | | |||||||||
2021 | | | | $ | 11,428 | | | | | $ | 6,555 | | | | | $ | 48 | | |
2022 | | | | | 11,428 | | | | | | 6,555 | | | | | | 12 | | |
2023 | | | | | 11,428 | | | | | | 6,555 | | | | | | — | | |
2024 | | | | | 11,428 | | | | | | 6,555 | | | | | | — | | |
2025 | | | | | 11,428 | | | | | | 6,555 | | | | | | — | | |
Thereafter | | | | | 31,584 | | | | | | 27,894 | | | | | | — | | |
Total | | | | $ | 88,724 | | | | | $ | 60,669 | | | | | $ | 60 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Accounts payable | | | | $ | 615 | | | | | $ | 3,838 | | |
Accrued inventory | | | | | 3,321 | | | | | | 906 | | |
Accrued compensation | | | | | 2,169 | | | | | | 5,679 | | |
Accrued taxes and penalties | | | | | 1,732 | | | | | | 1,708 | | |
Accrued lease termination costs | | | | | 360 | | | | | | 272 | | |
Accrued technology and subscription fees | | | | | 1,536 | | | | | | 2,233 | | |
Accrued interest | | | | | 1,440 | | | | | | 1,305 | | |
Accrued insurance settlement liability | | | | | — | | | | | | 2,100 | | |
Accrued AR development rights holdback liability | | | | | — | | | | | | 2,183 | | |
Other accrued liabilities | | | | | 2,316 | | | | | | 4,829 | | |
Total Accounts payable and accrued liabilities | | | | $ | 13,489 | | | | | $ | 25,053 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Term Loan | | | | $ | 240,552 | | | | | $ | 227,956 | | |
Revolving Credit Facility | | | | | 30,000 | | | | | | 3,000 | | |
Less: current portion | | | | | (2,428) | | | | | | (2,285) | | |
Total long-term debt | | | | | 268,124 | | | | | | 228,671 | | |
Less: unamortized deferred financing costs | | | | | (5,149) | | | | | | (5,677) | | |
Total long-term debt, net | | | | $ | 262,975 | | | | | $ | 222,994 | | |
Fiscal Years Ending | | | Amount | | |||
2021 | | | | $ | 2,428 | | |
2022 | | | | | 2,428 | | |
2023 | | | | | 2,428 | | |
2024 | | | | | 233,268 | | |
Total principal | | | | | 240,552 | | |
Less: unamortized debt discount | | | | | (5,149) | | |
Total debt, net | | | | $ | 235,403 | | |
| | | Balance Sheet Classification | | | December 26, 2020 | | | December 28, 2019 | | ||||||
Derivatives designated as hedging instruments: | | | | | | | | | | | | | | | | |
Interest rate cap, non-current portion | | | Other non-current assets | | | | $ | — | | | | | $ | 90 | | |
Interest rate cap, current portion | | | Other current liabilities | | | | | (181) | | | | | | (180) | | |
Interest rate cap, non-current portion | | | Other long-term liabilities | | | | | (346) | | | | | | (645) | | |
Total derivative liabilities designated as hedging instruments | | | | | | | $ | (527) | | | | | $ | (735) | | |
Fiscal Years Ending | | | Amount | | |||
2021 | | | | $ | 2,398 | | |
2022 | | | | | 2,166 | | |
2023 | | | | | 1,573 | | |
2024 | | | | | 1,429 | | |
2025 | | | | | 1,212 | | |
Thereafter | | | | | 2,180 | | |
Total | | | | $ | 10,958 | | |
| | | Exit Cost Obligation – Leases | | |||
Exit cost obligation at cease-use date in fiscal 2019 | | | | $ | 778 | | |
Exit cost obligation at December 28, 2019 | | | | $ | 778 | | |
Additional exit cost obligation at cease-use date in fiscal 2020 | | | | | 159 | | |
Accretion during fiscal year 2020 | | | | | 11 | | |
Net payments made during fiscal year 2020 | | | | | (333) | | |
Exit cost obligation at December 26, 2020 | | | | $ | 615 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Accounts payable and accrued liabilities | | | | $ | 360 | | | | | $ | 272 | | |
Other long-term liabilities | | | | | 255 | | | | | | 506 | | |
Total exit cost obligation | | | | $ | 615 | | | | | $ | 778 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Term | | | | | 2.2 | | | | | | 3.1 | | |
Risk-free Rate | | | | | 0.6% | | | | | | 2.2% | | |
Volatility | | | | | 46% | | | | | | 34% | | |
Dividend yield | | | | | — | | | | | | — | | |
| | | Units | | | Weighted average grant date fair value | | ||||||
Unvested outstanding, December 28, 2019 | | | | | 2,352,292 | | | | | $ | 2.57 | | |
Granted | | | | | 244,371 | | | | | | 2.63 | | |
Vested | | | | | (652,079) | | | | | | 2.26 | | |
Forfeited | | | | | (108,715) | | | | | | 2.28 | | |
Unvested outstanding, December 26, 2020 | | | | | 1,835,869 | | | | | $ | 2.70 | | |
Vested as of December 26, 2020 | | | | | 652,079 | | | | | $ | 2.26 | | |
| | | Units | | | Weighted average grant date fair value | | ||||||
Unvested outstanding, December 28, 2019 | | | | | 1,568,704 | | | | | $ | 0.38 | | |
Granted | | | | | 245,774 | | | | | | 0.68 | | |
Vested | | | | | — | | | | | | — | | |
Forfeited | | | | | (96,167) | | | | | | 0.33 | | |
Unvested outstanding, December 28, 2019 | | | | | 1,718,311 | | | | | $ | 0.49 | | |
Vested as of December 26, 2020 | | | | | — | | | | | | — | | |
| | | Contract liabilities | | |||
Balance at December 29, 2018 | | | | $ | 8,179 | | |
Revenue recognized that was included in the contract liability at the beginning of the year | | | | | (3,408) | | |
Increase, excluding amounts recognized as revenue during the period | | | | | 4,486 | | |
Balance at December 28, 2019 | | | | $ | 9,257 | | |
Revenue recognized that was included in the contract liability at the beginning of the year | | | | | (2,461) | | |
Increase, excluding amounts recognized as revenue during the period | | | | | 2,083 | | |
Balance at December 26, 2020 | | | | $ | 8,879 | | |
Contract liabilities to be recognized in: | | | Amount | | |||
2021 | | | | $ | 2,351 | | |
2022 | | | | | 1,004 | | |
2023 | | | | | 974 | | |
2024 | | | | | 914 | | |
2025 | | | | | 844 | | |
Thereafter | | | | | 2,792 | | |
Total | | | | $ | 8,879 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Franchise fees | | | | $ | 7,542 | | | | | $ | 7,657 | | |
Service revenue | | | | | 1,337 | | | | | | 1,600 | | |
Total deferred revenue | | | | | 8,879 | | | | | | 9,257 | | |
Long-term portion of deferred revenue | | | | | 6,528 | | | | | | 6,799 | | |
Current portion of deferred revenue | | | | $ | 2,351 | | | | | $ | 2,458 | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Net loss | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Less: preferred return on Class D Units | | | | | (1,670) | | | | | | — | | |
Net loss applicable to common unitholders | | | | $ | (23,165) | | | | | $ | (24,396) | | |
Net loss applicable by class of common units | | | | | | | | | | | | | |
Class A Founders’ Units | | | | $ | (5,545) | | | | | $ | (5,840) | | |
| | | December 26, 2020 | | | December 28, 2019 | | ||||||
Class A Units | | | | | (17,620) | | | | | | (18,556) | | |
Net loss applicable to common unitholders | | | | $ | (23,165) | | | | | $ | (24,396) | | |
Weighted average outstanding units | | | | | | | | | | | | | |
Class A Founders’ Units | | | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units | | | | | 26,401,089 | | | | | | 26,401,089 | | |
Basic and diluted net loss per unit applicable to unitholders: | | | | | | | | | | | | | |
Class A Founders’ Units | | | | $ | (0.67) | | | | | $ | (0.70) | | |
Class A Units | | | | $ | (0.67) | | | | | $ | (0.70) | | |
| | | March 27, 2021 | | | December 26, 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 28,687 | | | | | $ | 36,720 | | |
Accounts receivable, net | | | | | 12,274 | | | | | | 5,070 | | |
Inventory | | | | | 14,654 | | | | | | 10,280 | | |
Prepaid expenses and other current assets | | | | | 8,432 | | | | | | 4,574 | | |
Advances to related parties | | | | | 689 | | | | | | 689 | | |
Total current assets | | | | | 64,736 | | | | | | 57,333 | | |
Property and equipment, net | | | | | 4,835 | | | | | | 5,039 | | |
Intangible assets, net | | | | | 216,142 | | | | | | 213,267 | | |
Goodwill | | | | | 328,551 | | | | | | 328,551 | | |
Other non-current assets | | | | | 3,300 | | | | | | 2,710 | | |
Total assets | | | | $ | 617,564 | | | | | $ | 606,900 | | |
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | $ | 23,832 | | | | | $ | 13,489 | | |
Long-term debt, current portion | | | | | 2,428 | | | | | | 2,428 | | |
Deferred revenue, current portion | | | | | 2,488 | | | | | | 2,351 | | |
Other current liabilities | | | | | 181 | | | | | | 181 | | |
Total current liabilities | | | | | 28,929 | | | | | | 18,449 | | |
Long-term debt, net | | | | | 262,702 | | | | | | 262,975 | | |
Deferred revenue, net of current portion | | | | | 6,601 | | | | | | 6,528 | | |
Other long-term liabilities | | | | | 690 | | | | | | 925 | | |
Total liabilities | | | | | 298,922 | | | | | | 288,877 | | |
Commitments and contingencies (Note 9) | | | | | | | | | | | | | |
Mezzanine equity: | | | | | | | | | | | | | |
Class A Founders’ Units (8,309,193 Class A Founders’ Units authorized, issued and outstanding as of March 27, 2021 and December 26, 2020) | | | | | 121,231 | | | | | | 89,240 | | |
Class D Units (2,500,000 Class D Units authorized, issued and outstanding as of March 27, 2021 and December 26, 2020; aggregate liquidation preference of $27,298 and $26,670 as of March 27, 2021 and December 26, 2020, respectively) | | | | | 24,909 | | | | | | 24,909 | | |
Members’ equity: | | | | | | | | | | | | | |
Class A Units (26,311,170 and 26,401,089 Class A Units authorized, issued and outstanding as of March 27, 2021 and December 26, 2020) | | | | | 264,849 | | | | | | 265,791 | | |
Class B Unit (1 Class B Unit authorized, issued and outstanding as of March 27, 2021 and December 26, 2020) | | | | | — | | | | | | — | | |
Class C Units (1,000 Class C Units authorized, issued and outstanding as of March 27, 2021 and December 26, 2020) | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | 83 | | |
Accumulated deficit | | | | | (91,979) | | | | | | (61,473) | | |
Accumulated other comprehensive loss | | | | | (368) | | | | | | (527) | | |
Total liabilities, mezzanine equity, and members’ equity | | | | $ | 617,564 | | | | | $ | 606,900 | | |
| | | For the 13 Weeks Ended | | |||||||||
| March 27, 2021 | | | March 28, 2020 | | ||||||||
REVENUE | | | | | | | | | | | | | |
Product sales | | | | $ | 20,617 | | | | | $ | 18,345 | | |
Royalty fees | | | | | 8,850 | | | | | | 8,901 | | |
Marketing fees | | | | | 4,934 | | | | | | 3,559 | | |
Other revenue | | | | | 2,256 | | | | | | 2,018 | | |
Total revenue | | | | | 36,657 | | | | | | 32,823 | | |
OPERATING EXPENSES | | | | | | | | | | | | | |
Cost of revenue | | | | | 9,931 | | | | | | 8,678 | | |
Selling, general and administrative(1) | | | | | 11,066 | | | | | | 10,378 | | |
Advertising | | | | | 4,884 | | | | | | 3,688 | | |
Depreciation and amortization | | | | | 5,138 | | | | | | 4,898 | | |
Total operating expenses | | | | | 31,019 | | | | | | 27,642 | | |
Income from operations | | | | | 5,638 | | | | | | 5,181 | | |
Interest expense | | | | | (4,536) | | | | | | (4,222) | | |
NET INCOME | | | | $ | 1,102 | | | | | $ | 959 | | |
Items included in other comprehensive income: | | | | | | | | | | | | | |
Unrealized gain (loss) on cash flow hedge | | | | | 159 | | | | | | (665) | | |
TOTAL COMPREHENSIVE INCOME | | | | $ | 1,261 | | | | | $ | 294 | | |
Basic and diluted net income per unit | | | | | | | | | | | | | |
Class A Founders’ Units | | | | $ | 0.01 | | | | | $ | 0.03 | | |
Class A Units | | | | $ | 0.01 | | | | | $ | 0.03 | | |
Basic and diluted weighted average units outstanding | | | | | | | | | | | | | |
Class A Founders’ Units | | | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units | | | | | 26,323,027 | | | | | | 26,401,089 | | |
| | | | | | | | | | | | | |
(1) Includes the following amounts paid to related parties, see Note 11 | | | | $ | 33 | | | | | $ | 50 | | |
| | | For the 13 Weeks Ended | | |||||||||
| March 27, 2021 | | | March 28, 2020 | | ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 1,102 | | | | | $ | 959 | | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 5,138 | | | | | | 4,898 | | |
Amortization of deferred financing costs | | | | | 334 | | | | | | 88 | | |
Provision for bad debts | | | | | 104 | | | | | | — | | |
Equity compensation | | | | | 298 | | | | | | 827 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (8,206) | | | | | | 3,044 | | |
Inventory | | | | | (4,374) | | | | | | (3,896) | | |
Prepaid expenses and other assets | | | | | (3,479) | | | | | | 388 | | |
Accounts payable and accrued liabilities | | | | | 6,962 | | | | | | (5,164) | | |
Deferred revenue | | | | | 210 | | | | | | 212 | | |
Other long-term liabilities | | | | | (76) | | | | | | 94 | | |
Net cash (used in) provided by operating activities | | | | | (1,987) | | | | | | 1,450 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (224) | | | | | | (1,320) | | |
Reacquisition of area representative rights | | | | | (4,275) | | | | | | (28,192) | | |
Net cash used in investing activities | | | | | (4,499) | | | | | | (29,512) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds on line of credit | | | | | — | | | | | | 17,000 | | |
Proceeds on long-term debt | | | | | — | | | | | | 15,000 | | |
Principal payments on long-term debt | | | | | (607) | | | | | | (576) | | |
Deferred loan costs | | | | | — | | | | | | (35) | | |
Distributions to members | | | | | — | | | | | | (1,683) | | |
Contributions from members | | | | | 2 | | | | | | — | | |
Repurchase of Class A Units | | | | | (942) | | | | | | — | | |
Net cash (used in) provided by financing activities | | | | | (1,547) | | | | | | 29,706 | | |
Net (decrease) increase in cash | | | | | (8,033) | | | | | | 1,644 | | |
Cash, beginning of period | | | | | 36,720 | | | | | | 10,264 | | |
Cash, end of period | | | | $ | 28,687 | | | | | $ | 11,908 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | 4,187 | | | | | $ | 3,854 | | |
Non-cash investing activities: | | | | | | | | | | | | | |
Reacquired rights purchased included in accounts payable and accrued liabilities | | | | $ | 3,381 | | | | | $ | 4,239 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Non-cash equity distributions | | | | $ | — | | | | | $ | 122 | | |
| | | MEZZANINE EQUITY | | | | MEMBERS’ EQUITY | | | Additional paid-in capital | | | Accumulated deficit | | | Accumulated other comprehensive loss | | | Total members’ equity | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Founders’ Units | | | Class D Units | | | | Class A Units | | | Class B Units | | | Class C Units | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | | | Amount | | | Units | | | Amount | | | | Units | | | Amount | | | Units | | | Amount | | | Units | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 26, 2020 | | | | | 8,309,193 | | | | | $ | 89,240 | | | | | | 2,500,000 | | | | | $ | 24,909 | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | 83 | | | | | $ | (61,473) | | | | | $ | (527) | | | | | $ | 203,874 | | |
Equity compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 298 | | | | | | — | | | | | | — | | | | | | 298 | | |
Repurchase of Class A Units | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (89,919) | | | | | | (942) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (942) | | |
Contributions | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 2 | | |
Unrealized gain on cash flow hedge | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 159 | | | | | | 159 | | |
Accretion of Class A Founders’ Units to redemption value | | | | | — | | | | | | 31,991 | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (383) | | | | | | (31,608) | | | | | | — | | | | | | (31,991) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,102 | | | | | | — | | | | | | 1,102 | | |
Balance at March 27, 2021 | | | | | 8,309,193 | | | | | $ | 121,231 | | | | | | 2,500,000 | | | | | $ | 24,909 | | | | | | | 26,311,170 | | | | | $ | 264,849 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (91,979) | | | | | $ | (368) | | | | | $ | 172,502 | | |
| | | MEZZANINE EQUITY | | | | MEMBERS’ EQUITY | | | Additional paid-in capital | | | Accumulated deficit | | | Accumulated other comprehensive loss | | | Total members’ equity | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Founders’ Units | | | Class D Units | | | | Class A Units | | | Class B Units | | | Class C Units | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | | | Amount | | | Units | | | Amount | | | | Units | | | Amount | | | Units | | | Amount | | | Units | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 28, 2019 | | | | | 8,309,193 | | | | | $ | 104,280 | | | | | | — | | | | | $ | — | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (55,018) | | | | | $ | (735) | | | | | $ | 210,038 | | |
Equity compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 827 | | | | | | — | | | | | | — | | | | | | 827 | | |
Distributions | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (827) | | | | | | (978) | | | | | | — | | | | | | (1,805) | | |
Unrealized loss on cash flow hedge | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (665) | | | | | | (665) | | |
Reduction of Class A Founders’ Units to redemption value | | | | | — | | | | | | (17,781) | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,781 | | | | | | — | | | | | | 17,781 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 959 | | | | | | — | | | | | | 959 | | |
Balance at March 28, 2020 | | | | | 8,309,193 | | | | | $ | 86,499 | | | | | | — | | | | | $ | — | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (37,256) | | | | | $ | (1,400) | | | | | $ | 227,135 | | |
| | | Fair Market Value | | | Quoted prices in active markets for identical assets (Level 1) | | | Significant observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | ||||||||||||
Interest rate cap | | | | | | | | | | | | | | | | | | | | | | | | | |
March 27, 2021 | | | | $ | (368) | | | | | $ | — | | | | | $ | (368) | | | | | $ | — | | |
December 26, 2020 | | | | $ | (527) | | | | | $ | — | | | | | $ | (527) | | | | | $ | — | | |
| | | March 27, 2021 | | | December 26, 2020 | | ||||||
Prepaid inventory | | | | $ | 1,505 | | | | | $ | 2,000 | | |
Deferred IPO fees | | | | | 2,039 | | | | | | 39 | | |
Prepaid other & other current assets | | | | | 4,888 | | | | | | 2,535 | | |
Total | | | | $ | 8,432 | | | | | $ | 4,574 | | |
| | | March 27, 2021 | | |||||||||||||||||||||
| Weighted Average Remaining Useful Life (Years) | | | Gross Carrying Value | | | Accumulated Amortization | | | Net Carrying Value | | ||||||||||||||
Franchisee relationships | | | | | 7.49 | | | | | $ | 114,594 | | | | | $ | (28,727) | | | | | $ | 85,867 | | |
Reacquired rights | | | | | 9.07 | | | | | | 76,557 | | | | | | (10,144) | | | | | | 66,413 | | |
Favorable lease assets | | | | | 0.99 | | | | | | 170 | | | | | | (122) | | | | | | 48 | | |
| | | | | | | | | | | 191,321 | | | | | | (38,993) | | | | | | 152,328 | | |
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name | | | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets | | | | | | | | | | $ | 255,135 | | | | | $ | (38,993) | | | | | $ | 216,142 | | |
| | | December 26, 2020 | | |||||||||||||||||||||
| Weighted Average Remaining Useful Life (Years) | | | Gross Carrying Value | | | Accumulated Amortization | | | Net Carrying Value | | ||||||||||||||
Franchisee relationships | | | | | 7.74 | | | | | $ | 114,594 | | | | | $ | (25,870) | | | | | $ | 88,724 | | |
| | | December 26, 2020 | | |||||||||||||||||||||
| Weighted Average Remaining Useful Life (Years) | | | Gross Carrying Value | | | Accumulated Amortization | | | Net Carrying Value | | ||||||||||||||
Reacquired rights | | | | | 9.19 | | | | | | 68,973 | | | | | | (8,304) | | | | | | 60,669 | | |
Favorable lease assets | | | | | 1.24 | | | | | | 170 | | | | | | (110) | | | | | | 60 | | |
| | | | | | | | | | | 183,737 | | | | | | (34,284) | | | | | | 149,453 | | |
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name | | | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets | | | | | | | | | | $ | 247,551 | | | | | $ | (34,284) | | | | | $ | 213,267 | | |
|
Fiscal Years Ending | | | Franchisee Relationships | | | Reacquired Rights | | | Favorable Lease Assets | | |||||||||
2021 (from March 28, 2021) | | | | $ | 8,571 | | | | | $ | 5,523 | | | | | $ | 36 | | |
2022 | | | | | 11,428 | | | | | | 7,364 | | | | | | 12 | | |
2023 | | | | | 11,428 | | | | | | 7,364 | | | | | | — | | |
2024 | | | | | 11,428 | | | | | | 7,364 | | | | | | — | | |
2025 | | | | | 11,428 | | | | | | 7,364 | | | | | | — | | |
Thereafter | | | | | 31,584 | | | | | | 31,434 | | | | | | — | | |
Total | | | | $ | 85,867 | | | | | $ | 66,413 | | | | | $ | 48 | | |
| | | March 27, 2021 | | | December 26, 2020 | | ||||||
Accounts payable | | | | $ | 9,283 | | | | | $ | 615 | | |
Accrued inventory | | | | | 4,351 | | | | | | 3,321 | | |
Accrued compensation | | | | | 1,953 | | | | | | 2,169 | | |
Accrued taxes and penalties | | | | | 1,713 | | | | | | 1,732 | | |
Accrued lease termination costs | | | | | 366 | | | | | | 360 | | |
Accrued technology and subscription fees | | | | | 265 | | | | | | 1,536 | | |
Accrued interest | | | | | 1,436 | | | | | | 1,440 | | |
Accrued professional fees | | | | | 2,528 | | | | | | 967 | | |
Other accrued liabilities | | | | | 1,937 | | | | | | 1,349 | | |
Total Accounts payable and accrued liabilities | | | | $ | 23,832 | | | | | $ | 13,489 | | |
| | | March 27, 2021 | | | December 26, 2020 | | ||||||
Term Loan | | | | $ | 239,945 | | | | | $ | 240,552 | | |
Revolving Credit Facility | | | | | 30,000 | | | | | | 30,000 | | |
Less: current portion | | | | | (2,428) | | | | | | (2,428) | | |
Total long-term debt | | | | | 267,517 | | | | | | 268,124 | | |
Less: unamortized deferred financing costs | | | | | (4,815) | | | | | | (5,149) | | |
Total long-term debt, net | | | | $ | 262,702 | | | | | $ | 262,975 | | |
| | | Balance Sheet Classification | | | March 27, 2021 | | | December 26, 2020 | | ||||||
Derivatives designated as hedging instruments: | | | | | | | | | | | | | | | | |
Interest rate cap, current portion | | | Other current liabilities | | | | | (181) | | | | | | (181) | | |
Interest rate cap, non-current portion | | | Other long-term liabilities | | | | | (187) | | | | | | (346) | | |
Total derivative liabilities designated as hedging instruments | | | | | | | $ | (368) | | | | | $ | (527) | | |
| | | Net Unrealized Gain (Loss) Recognized in OCI | | |||||||||
| 13 Weeks Ended March 27, 2021 | | | 13 Weeks Ended March 28, 2020 | | ||||||||
Derivatives designated as hedging instruments: | | | | | | | | | | | | | |
Interest rate cap | | | | $ | 159 | | | | | $ | (665) | | |
Total | | | | $ | 159 | | | | | $ | (665) | | |
| | | Exit Cost Obligation − Leases | | |||
Exit cost obligation at December 26, 2020 | | | | $ | 615 | | |
Accretion | | | | | 2 | | |
Payments | | | | | (88) | | |
Exit cost obligation at March 27, 2021 | | | | $ | 529 | | |
| | | March 27, 2021 | | | December 26, 220 | | ||||||
Accounts payable and accrued liabilities | | | | $ | 366 | | | | | $ | 360 | | |
Other long-term liabilities | | | | | 163 | | | | | | 255 | | |
Total exit cost obligation | | | | $ | 529 | | | | | $ | 615 | | |
| | | Contract liabilities | | |||
Balance at December 26, 2020 | | | | $ | 8,879 | | |
Revenue recognized that was included in the contract liability at the beginning of the year | | | | | (691) | | |
Increase, excluding amounts recognized as revenue during the period | | | | | 901 | | |
Balance at March 27, 2021 | | | | $ | 9,089 | | |
Contract liabilities to be recognized in: | | | Amount | | |||
2021 (from March 28, 2021) | | | | $ | 2,227 | | |
2022 | | | | | 1,035 | | |
2023 | | | | | 1,004 | | |
2024 | | | | | 945 | | |
2025 | | | | | 875 | | |
Thereafter | | | | | 3,003 | | |
Total | | | | $ | 9,089 | | |
| | | March 27, 2021 | | | December 26, 2020 | | ||||||
Franchise fees | | | | $ | 7,882 | | | | | $ | 7,542 | | |
Service revenue | | | | | 1,207 | | | | | | 1,337 | | |
Total deferred revenue | | | | | 9,089 | | | | | | 8,879 | | |
Long-term portion of deferred revenue | | | | | 6,601 | | | | | | 6,528 | | |
Current portion of deferred revenue | | | | $ | 2,488 | | | | | $ | 2,351 | | |
| | | 13 Weeks Ended March 27, 2021 | | �� | 13 Weeks Ended March 28, 2020 | | ||||||
Net income | | | | $ | 1,102 | | | | | $ | 959 | | |
Less: preferred return on Class D Units | | | | | (628) | | | | | | — | | |
Less: net income allocated to participating securities | | | | | (9) | | | | | | (1) | | |
Net income applicable to common unitholders | | | | $ | 465 | | | | | $ | 958 | | |
Net income applicable by class of common units | | | | | | | | | | | | | |
Class A Founders’ Units | | | | $ | 112 | | | | | $ | 229 | | |
Class A Units | | | | | 353 | | | | | | 729 | | |
Net income applicable to common unitholders | | | | $ | 465 | | | | | $ | 958 | | |
Basic and diluted weighted average outstanding units | | | | | | | | | | | | | |
Class A Founders’ Units | | | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units | | | | | 26,323,027 | | | | | | 26,401,089 | | |
Basic and diluted net loss per unit applicable to unitholders: | | | | | | | | | | | | | |
Class A Founders’ Units | | | | $ | 0.01 | | | | | $ | 0.03 | | |
Class A Units | | | | $ | 0.01 | | | | | $ | 0.03 | | |
| SEC registration fee | | | $ | 22,939 | | | SEC registration fee | | | $ | 12,492 | | | ||
| Nasdaq Global Select Market listing fee | | | | 195,000 | | | FINRA filing fee | | | | 20,714 | | | ||
| FINRA filing fee | | | | 33,413 | | | Printing expenses | | | | 55,000 | | | ||
| Printing expenses | | | | 350,000 | | | Accounting fees and expenses | | | | 250,000 | | | ||
| Accounting fees and expenses | | | | 1,800,000 | | | Legal fees and expenses | | | | 400,000 | | | ||
| Legal fees and expenses | | | | 3,400,000 | | | Miscellaneous | | | | 61,794 | | | ||
| Transfer agent fees and expenses | | | | 4,000 | | | Total | | | $ | 800,000 | | | ||
| Miscellaneous | | | | 2,300,000 | | | |||||||||
| Total | | | $ | 8,105,352 | | |
| | | | EUROPEAN WAX CENTER, INC. | | |||
| | | | By: | | | /s/ David P. Berg Name: David P. Berg Title: Chief Executive Officer | |
| Signature | | | Title | |
| /s/ David P. Berg David P. Berg | | | Chief Executive Officer (Principal Executive Officer) and Director | |
| /s/ | | | Chief Financial Officer and Chief Operating Officer (Principal Financial | |
| /s/ Cindy Thomassee Cindy Thomassee | | | Chief Accounting Officer and Controller (Principal Accounting Officer) | |
| Alexa Bartlett | | | Director | |
| Andrew Crawford | | | Director | |
| Laurie Ann Goldman | | | Director | |
| Shaw Joseph | | | Director | |
| Signature | | | Title | |
| Dorvin D. Lively | | | Director | |
| /s/ | | | |