Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 28, 2019 | Jan. 31, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | Container Store Group, Inc. | |
Entity Central Index Key | 0001411688 | |
Current Fiscal Year End Date | --03-28 | |
Document Fiscal Year Focus | 2019 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 28, 2019 | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Common Stock Outstanding | 49,368,117 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Current assets: | |||
Cash | $ 13,971 | $ 7,364 | $ 20,969 |
Accounts receivable, net | 29,438 | 25,568 | 29,549 |
Inventory | 139,579 | 108,650 | 116,006 |
Prepaid expenses | 10,435 | 10,078 | 8,877 |
Income taxes receivable | 1,205 | 1,003 | 640 |
Other current assets | 11,633 | 11,705 | 10,404 |
Total current assets | 206,261 | 164,368 | 186,445 |
Noncurrent assets: | |||
Property and equipment, net | 153,515 | 152,588 | 151,860 |
Noncurrent operating lease assets | 350,922 | ||
Goodwill | 202,815 | 202,815 | 202,815 |
Trade names | 224,956 | 225,150 | 226,996 |
Deferred financing costs, net | 188 | 241 | 259 |
Noncurrent deferred tax assets, net | 1,835 | 1,912 | 1,898 |
Other assets | 1,790 | 1,670 | 1,749 |
Total noncurrent assets | 936,021 | 584,376 | 585,577 |
Total assets | 1,142,282 | 748,744 | 772,022 |
Current liabilities: | |||
Accounts payable | 56,231 | 58,734 | 59,571 |
Accrued liabilities | 67,658 | 67,163 | 67,775 |
Revolving lines of credit | 5,511 | ||
Current portion of long-term debt | 6,953 | 7,016 | 7,018 |
Current operating lease liabilities | 63,163 | ||
Income taxes payable | 2,504 | 2,851 | 1,589 |
Total current liabilities | 196,509 | 141,275 | 135,953 |
Noncurrent liabilities: | |||
Long-term debt | 298,758 | 254,960 | 297,895 |
Noncurrent operating lease liabilities | 320,536 | ||
Noncurrent deferred tax liabilities, net | 48,363 | 51,702 | 50,397 |
Other long-term liabilities | 9,947 | 36,114 | 36,339 |
Total noncurrent liabilities | 677,604 | 342,776 | 384,631 |
Total liabilities | 874,113 | 484,051 | 520,584 |
Commitments and contingencies (Note 6) | |||
Shareholders' equity: | |||
Common stock, $0.01 par value, 250,000,000 shares authorized; 48,316,559 shares issued at December 28, 2019; 48,142,319 shares issued at March 30, 2019; 48,142,319 shares issued at December 29, 2018 | 483 | 481 | 481 |
Additional paid-in capital | 866,132 | 863,978 | 863,119 |
Accumulated other comprehensive loss | (26,771) | (26,132) | (22,646) |
Retained deficit | (571,675) | (573,634) | (589,516) |
Total shareholders' equity | 268,169 | 264,693 | 251,438 |
Total liabilities and shareholders' equity | $ 1,142,282 | $ 748,744 | $ 772,022 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Consolidated balance sheets | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 48,316,559 | 48,142,319 | 48,142,319 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Consolidated statements of operations | ||||
Net sales | $ 228,657 | $ 221,637 | $ 674,609 | $ 641,913 |
Cost of sales (excluding depreciation and amortization) | 94,292 | 91,580 | 283,633 | 266,510 |
Gross profit | 134,365 | 130,057 | 390,976 | 375,403 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 111,972 | 108,688 | 334,281 | 320,949 |
Stock-based compensation | 799 | 632 | 2,575 | 1,987 |
Pre-opening costs | 2,482 | 691 | 5,988 | 1,918 |
Depreciation and amortization | 9,689 | 8,887 | 28,137 | 27,352 |
Other expenses | 80 | 375 | 297 | |
Other income | (1) | |||
Gain on disposal of assets | (8) | (324) | (12) | (284) |
Income from operations | 9,432 | 11,403 | 19,632 | 23,184 |
Interest expense, net | 5,134 | 6,008 | 16,245 | 21,293 |
Loss on extinguishment of debt | 2,082 | |||
Income (loss) before taxes | 4,298 | 5,395 | 3,387 | (191) |
Provision (benefit) for income taxes | 1,886 | (3,926) | 1,428 | (5,989) |
Net income | $ 2,412 | $ 9,321 | $ 1,959 | $ 5,798 |
Net income per common share—basic and diluted | $ 0.05 | $ 0.19 | $ 0.04 | $ 0.12 |
Weighted-average common shares - basic (in shares) | 48,313,671 | 48,139,582 | 48,987,525 | 48,139,132 |
Weighted-average common shares - diluted (in shares) | 48,370,418 | 48,381,455 | 49,172,633 | 48,407,337 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Consolidated statements of comprehensive income | ||||
Net income | $ 2,412 | $ 9,321 | $ 1,959 | $ 5,798 |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $846, $216, ($154) and ($196) | 2,414 | 660 | (515) | (687) |
Pension liability adjustment, net of $0 | (111) | (3) | 12 | 132 |
Foreign currency translation adjustment | 3,321 | (136) | (136) | (4,775) |
Comprehensive income | $ 8,036 | $ 9,842 | $ 1,320 | $ 468 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 30, 2019 | |
Consolidated statements of comprehensive income | |||||||||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | $ 846 | $ (981) | $ (18) | $ 216 | $ 154 | $ (566) | $ (154) | $ (196) | |
Pension liability adjustment, taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Operating activities | ||
Net income | $ 1,959 | $ 5,798 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 28,137 | 27,352 |
Stock-based compensation | 2,575 | 1,987 |
Gain on disposal of assets | (12) | (284) |
Loss on extinguishment of debt | 2,082 | |
Deferred tax benefit | (5,023) | (3,959) |
Non-cash interest | 1,396 | 1,886 |
Other | 187 | (35) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,149) | (4,655) |
Inventory | (32,127) | (22,013) |
Prepaid expenses and other assets | 1,216 | 4,853 |
Accounts payable and accrued liabilities | 3,630 | 13,475 |
Net change in lease assets and liabilities | 245 | |
Income taxes | (547) | (3,564) |
Other noncurrent liabilities | 1,377 | (5,100) |
Net cash (used in) provided by operating activities | (1,136) | 17,823 |
Investing activities | ||
Additions to property and equipment | (29,296) | (21,328) |
Proceeds from sale of property and equipment | 12 | 915 |
Net cash used in investing activities | (29,284) | (20,413) |
Financing activities | ||
Borrowings on revolving lines of credit | 51,335 | 40,256 |
Payments on revolving lines of credit | (56,700) | (40,256) |
Borrowings on long-term debt | 65,000 | 326,500 |
Payments on long-term debt | (22,512) | (308,251) |
Payment of debt issuance costs | (2,384) | |
Payment of taxes with shares withheld upon restricted stock vesting | (372) | (128) |
Net cash provided by financing activities | 36,751 | 15,737 |
Effect of exchange rate changes on cash | 276 | (577) |
Net increase in cash | 6,607 | 12,570 |
Cash at beginning of fiscal period | 7,364 | 8,399 |
Cash at end of fiscal period | 13,971 | 20,969 |
Supplemental information for non-cash investing and financing activities: | ||
Purchases of property and equipment (included in accounts payable) | $ 970 | $ 2,619 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained deficit | Total |
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning of period at Mar. 31, 2018 | $ 481 | $ 861,263 | $ (17,316) | $ (595,721) | $ 248,707 |
Balance (in shares) at Mar. 31, 2018 | 48,072,187 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (6,764) | (6,764) | |||
Stock-based compensation | 586 | 586 | |||
Vesting of restricted stock awards | (1) | (1) | |||
Vesting of restricted stock awards (in shares) | 66,720 | ||||
Taxes related to net share settlement of restricted stock awards | (122) | (122) | |||
Foreign currency translation adjustment | (5,291) | (5,291) | |||
Unrealized gain on financial instruments, net of tax provision | (1,785) | (1,785) | |||
Pension liability adjustment, net of $0 | 153 | 153 | |||
Balance at the end of period at Jun. 30, 2018 | $ 481 | 861,726 | (24,239) | (602,078) | 235,890 |
Balance (in shares) at Jun. 30, 2018 | 48,138,907 | ||||
Balance at the beginning of period at Mar. 31, 2018 | $ 481 | 861,263 | (17,316) | (595,721) | 248,707 |
Balance (in shares) at Mar. 31, 2018 | 48,072,187 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 5,798 | ||||
Foreign currency translation adjustment | (4,775) | ||||
Unrealized gain on financial instruments, net of tax provision | (687) | ||||
Pension liability adjustment, net of $0 | 132 | ||||
Balance at the end of period at Dec. 29, 2018 | $ 481 | 863,119 | (22,646) | (589,516) | $ 251,438 |
Balance (in shares) at Dec. 29, 2018 | 48,142,319 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative adjustment for adoption of ASC 606 | 407 | $ 407 | |||
Balance at the beginning of period at Jun. 30, 2018 | $ 481 | 861,726 | (24,239) | (602,078) | 235,890 |
Balance (in shares) at Jun. 30, 2018 | 48,138,907 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 3,241 | 3,241 | |||
Stock-based compensation | 769 | 769 | |||
Foreign currency translation adjustment | 652 | 652 | |||
Unrealized gain on financial instruments, net of tax provision | 438 | 438 | |||
Pension liability adjustment, net of $0 | (18) | (18) | |||
Balance at the end of period at Sep. 29, 2018 | $ 481 | 862,495 | (23,167) | (598,837) | $ 240,972 |
Balance (in shares) at Sep. 29, 2018 | 48,138,907 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 9,321 | $ 9,321 | |||
Stock-based compensation | 631 | 631 | |||
Vesting of restricted stock awards (in shares) | 3,412 | ||||
Taxes related to net share settlement of restricted stock awards | (7) | (7) | |||
Foreign currency translation adjustment | (136) | (136) | |||
Unrealized gain on financial instruments, net of tax provision | 660 | 660 | |||
Pension liability adjustment, net of $0 | (3) | (3) | |||
Balance at the end of period at Dec. 29, 2018 | $ 481 | 863,119 | (22,646) | (589,516) | $ 251,438 |
Balance (in shares) at Dec. 29, 2018 | 48,142,319 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning of period at Mar. 30, 2019 | $ 481 | 863,978 | (26,132) | (573,634) | $ 264,693 |
Balance (in shares) at Mar. 30, 2019 | 48,142,319 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (4,099) | (4,099) | |||
Stock-based compensation | 811 | 811 | |||
Vesting of restricted stock awards | $ 2 | (56) | (54) | ||
Vesting of restricted stock awards (in shares) | 140,878 | ||||
Taxes related to net share settlement of restricted stock awards | (347) | (347) | |||
Foreign currency translation adjustment | 333 | 333 | |||
Unrealized gain on financial instruments, net of tax provision | (128) | (128) | |||
Pension liability adjustment, net of $0 | (2) | (2) | |||
Balance at the end of period at Jun. 29, 2019 | $ 483 | 864,386 | (25,929) | (577,733) | 261,207 |
Balance (in shares) at Jun. 29, 2019 | 48,283,197 | ||||
Balance at the beginning of period at Mar. 30, 2019 | $ 481 | 863,978 | (26,132) | (573,634) | 264,693 |
Balance (in shares) at Mar. 30, 2019 | 48,142,319 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 1,959 | ||||
Foreign currency translation adjustment | (136) | ||||
Unrealized gain on financial instruments, net of tax provision | (515) | ||||
Pension liability adjustment, net of $0 | 12 | ||||
Balance at the end of period at Dec. 28, 2019 | $ 483 | 866,132 | (26,771) | (571,675) | $ 268,169 |
Balance (in shares) at Dec. 28, 2019 | 48,316,559 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning of period at Jun. 29, 2019 | $ 483 | 864,386 | (25,929) | (577,733) | $ 261,207 |
Balance (in shares) at Jun. 29, 2019 | 48,283,197 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 3,646 | 3,646 | |||
Stock-based compensation | 965 | 965 | |||
Vesting of restricted stock awards | 4 | 4 | |||
Vesting of restricted stock awards (in shares) | 23,215 | ||||
Taxes related to net share settlement of restricted stock awards | (8) | (8) | |||
Foreign currency translation adjustment | (3,790) | (3,790) | |||
Unrealized gain on financial instruments, net of tax provision | (2,801) | (2,801) | |||
Pension liability adjustment, net of $0 | 125 | 125 | |||
Balance at the end of period at Sep. 28, 2019 | $ 483 | 865,347 | (32,395) | (574,087) | $ 259,348 |
Balance (in shares) at Sep. 28, 2019 | 48,306,412 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 2,412 | $ 2,412 | |||
Stock-based compensation | 799 | 799 | |||
Vesting of restricted stock awards (in shares) | 10,147 | ||||
Taxes related to net share settlement of restricted stock awards | (14) | (14) | |||
Foreign currency translation adjustment | 3,321 | 3,321 | |||
Unrealized gain on financial instruments, net of tax provision | 2,414 | 2,414 | |||
Pension liability adjustment, net of $0 | (111) | (111) | |||
Balance at the end of period at Dec. 28, 2019 | $ 483 | $ 866,132 | $ (26,771) | $ (571,675) | $ 268,169 |
Balance (in shares) at Dec. 28, 2019 | 48,316,559 | ||||
Common stock, par value (in dollars per share) | $ 0.01 |
Consolidated statements of sh_2
Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Consolidated statements of shareholders' equity | ||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Unrealized gain (loss) on financial instruments, taxes | $ 846 | $ (981) | $ (18) | $ 216 | $ 154 | $ (566) | $ (154) | $ (196) | ||
Pension liability adjustment, net of $0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Description of business and bas
Description of business and basis of presentation | 9 Months Ended |
Dec. 28, 2019 | |
Description of business and basis of presentation | |
Description of business and basis of presentation | The Container Store Group, Inc. Notes to consolidated financial statements (unaudited) (In thousands, except share amounts and unless otherwise stated) December 28, 2019 1. Description of business and basis of presentation These financial statements should be read in conjunction with the financial statement disclosures in our Annual Report on Form 10-K for the fiscal year ended March 30, 2019, filed with the Securities and Exchange Commission (“SEC”) on May 30, 2019 (the “2018 Annual Report on Form 10-K”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). We use the same accounting policies in preparing quarterly and annual financial statements, with the exception of lease accounting as discussed further below. All adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. All references herein to “fiscal 2019” refer to the 52-week fiscal year ending March 28, 2020, “fiscal 2018” refer to the 52-week fiscal year ended March 30, 2019, and “fiscal 2017” refer to the 52-week fiscal year ended March 31, 2018. Description of business The Container Store, Inc. was founded in 1978 in Dallas, Texas, as a retailer with a mission to provide customers with storage and organization solutions through an assortment of innovative products and unparalleled customer service. In 2007, The Container Store, Inc. was sold to The Container Store Group, Inc. (the “Company”), a holding company, of which a majority stake was purchased by Leonard Green and Partners, L.P. (“LGP”). On November 6, 2013, the Company completed its initial public offering (the “IPO”). As the majority shareholder, LGP retains a controlling interest in the Company. As of December 28, 2019, The Container Store, Inc. (“TCS”) operates 93 stores with an average size of approximately 25,000 square feet (19,000 selling square feet) in 33 states and the District of Columbia. The Container Store, Inc. also offers all of its products directly to its customers (including business customers), through its website and call center. The Container Store, Inc.’s wholly-owned Swedish subsidiary, Elfa International AB (“Elfa”), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. elfa ® branded products are sold exclusively in the United States in The Container Store retail stores, website and call center, and Elfa sells to various retailers on a wholesale basis in approximately 30 countries around the world, with a concentration in the Nordic region of Europe. Seasonality The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the thirty-nine weeks ended December 28, 2019 are not necessarily indicative of the operating results for the full year. The Company has historically realized a higher portion of net sales, operating income, and cash flows from operations in the fourth fiscal quarter, attributable primarily to the timing and impact of Our Annual elfa ® Sale, which traditionally starts in late December and runs into February. Recent accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , to revise lease accounting guidance. The update requires most leases to be recorded on the balance sheet as a lease liability, with a corresponding right-of-use asset, whereas these leases previously had an off-balance sheet classification. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019 and elected certain practical expedients permitted under the transition guidance, including the package of practical expedients; however, the Company did not elect the hindsight practical expedient. Additionally, the Company elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. The adoption of ASU 2016-02 resulted in an increase in total assets and total liabilities of $352,059 at transition. However, the adoption of this standard did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. See Note 3 for further discussion on leases. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which is intended to improve and simplify hedge accounting and improve the disclosures of hedging arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, the guidance on share-based payments to nonemployees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In July 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to determine which implementation costs to capitalize as assets. A customer’s accounting for the costs of the hosting component of the arrangement are not affected by the new guidance. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. |
Detail of certain balance sheet
Detail of certain balance sheet accounts | 9 Months Ended |
Dec. 28, 2019 | |
Detail of certain balance sheet accounts | |
Detail of certain balance sheet accounts | 2. Detail of certain balance sheet accounts December 28, March 30, December 29, 2019 2019 2018 Accounts receivable, net: Trade receivables, net $ 17,127 $ 16,730 $ 15,150 Credit card receivables 10,718 7,244 10,407 Other receivables 1,593 1,594 3,992 $ 29,438 $ 25,568 $ 29,549 Inventory: Finished goods $ 134,487 $ 103,774 $ 110,769 Raw materials 4,490 4,282 4,762 Work in progress 602 594 475 $ 139,579 $ 108,650 $ 116,006 Accrued liabilities: Accrued payroll, benefits and bonuses $ 22,270 $ 19,771 $ 21,406 Unearned revenue 13,579 10,744 10,941 Accrued transaction and property tax 12,348 12,249 9,767 Gift cards and store credits outstanding 10,180 8,777 9,562 Accrued lease liabilities — 4,882 4,793 Accrued interest 1,540 209 1,844 Other accrued liabilities 7,741 10,531 9,462 $ 67,658 $ 67,163 $ 67,775 Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, Unearned revenue included in Accrued liabilities, and Gift cards and store credits outstanding included in Accrued liabilities in the Company's Consolidated Balance Sheets provided above. Unearned revenue was $10,744 as of March 30, 2019, and $10,382 was subsequently recognized into revenue for the thirty-nine weeks ended December 28, 2019. Gift cards and store credits outstanding was $8,777 as of March 30, 2019, and $2,523 was subsequently recognized into revenue for the thirty-nine weeks ended December 28, 2019. See Note 10 for disaggregated revenue disclosures. |
Leases
Leases | 9 Months Ended |
Dec. 28, 2019 | |
Leases | |
Leases | 3. Leases We conduct all of our U.S. operations from leased facilities that include corporate headquarters, warehouse facilities, and 93 store locations. The corporate headquarters, warehouse facilities, and stores are under operating leases that generally expire over the next 1 to 20 years. We also lease computer hardware under operating leases that generally expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company also has finance leases at our Elfa segment which are immaterial. Lease expense on operating leases is recorded on a straight‑line basis over the term of the lease, commencing on the date the Company takes possession of the leased property and is recorded in selling, general and administrative expenses (“SG&A”). We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include lease payments that are based on a percentage of sales. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate applied to present value the future lease payments and the exercise of renewal options. Many of our leases contain renewal options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of lease costs for the thirteen and thirty-nine weeks ended December 28, 2019 were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended Operating lease costs $ 22,842 $ 67,840 Variable lease costs 270 903 Total lease costs $ 23,112 $ 68,743 We do not have sublease income and do not recognize lease assets or liabilities for short-term leases, defined as operating leases with initial terms of less than 12 months. Our short-term lease costs were not material for the thirty-nine weeks ended December 28, 2019. Supplemental cash flow information related to our leases for the thirteen and thirty-nine weeks ended December 28, 2019 were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 22,800 $ 67,321 Additions to right-of-use assets $ 2,842 $ 41,976 Weighted average remaining operating lease term and incremental borrowing rate as of December 28, 2019 were as follows: Weighted average remaining lease term (years) Weighted average incremental borrowing rate % As of December 28, 2019, future minimum lease payments under our operating lease liabilities were as follows: Operating leases (1) Within 1 year (remaining) $ 23,280 2 years 92,567 3 years 79,184 4 years 68,985 5 years 61,050 Thereafter 201,683 Total lease payments $ 526,749 Less amount representing interest (143,050) Total lease liability $ 383,699 Less current lease liability (63,163) Total noncurrent lease liability $ 320,536 (1) Operating lease payments exclude $12,201 of legally binding minimum lease payments for leases signed but not yet commenced. |
Net income per common share
Net income per common share | 9 Months Ended |
Dec. 28, 2019 | |
Net income per common share | |
Net income per common share | 4. Net income per common share Basic net income per common share is computed as net income divided by the weighted-average number of common shares for the period. Net income per common share – diluted is computed as net income divided by the weighted-average number of common shares for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potentially dilutive securities are excluded from the computation of net income per common share – diluted if their effect is anti-dilutive. The following is a reconciliation of net income and the number of shares used in the basic and diluted net income per common share calculations: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 28, December 29, December 28, December 29, 2019 2018 2019 2018 Numerator: Net income $ 2,412 $ 9,321 $ 1,959 $ 5,798 Denominator: Weighted-average common shares — basic 48,313,671 48,139,582 48,987,525 48,139,132 Options and other dilutive securities 56,747 241,873 185,108 268,205 Weighted-average common shares — diluted 48,370,418 48,381,455 49,172,633 48,407,337 Net income per common share — basic and diluted $ 0.05 $ 0.19 $ 0.04 $ 0.12 Antidilutive securities not included: Stock options outstanding 2,527,745 2,408,068 2,364,692 2,450,246 Nonvested restricted stock awards 310,422 148,310 164,556 29,251 |
Income taxes
Income taxes | 9 Months Ended |
Dec. 28, 2019 | |
Income taxes | |
Income taxes | 5. Income taxes The provision for income taxes in the thirteen weeks ended December 28, 2019 was $1,886 as compared to a benefit of $3,926 in the thirteen weeks ended December 29, 2018. The effective tax rate for the thirteen weeks ended December 28, 2019 was 43.9%, as compared to -72.8% in the thirteen weeks ended December 29, 2018. During the thirteen weeks ended December 28, 2019, the effective tax rate rose above the U.S. statutory rate of 21% primarily due to tax related to stock-based compensation, U.S. state income taxes, and the impact of the global intangible low-taxed income (“GILTI”) provision. During the thirteen weeks ended December 29, 2018, the effective tax rate fell below the U.S. statutory rate primarily due to the finalization of the one-time transition tax on foreign earnings related to the Tax Act enacted in fiscal 2017. The provision for income taxes in the thirty-nine weeks ended December 28, 2019 was $1,428 as compared to a benefit of $5,989 in the thirty-nine weeks ended December 29, 2018. The effective tax rate for the thirty-nine weeks ended December 28, 2019 was 42.2%, as compared to 3135.6% in the thirty-nine weeks ended December 29, 2018. During the thirty-nine weeks ended December 28, 2019, the effective tax rate rose above the U.S. statutory rate of 21% primarily due to tax related to stock-based compensation, U.S. state income taxes, and the impact of the GILTI provision. During the thirty-nine weeks ended December 29, 2018, the effective tax rate rose above the U.S. statutory rate due to the finalization of the one-time transition tax on foreign earnings and other Tax Act items, and recognition of a $604 tax benefit for the remeasurement of deferred tax balances as a result of a change in the Swedish tax rate, combined with a year-to-date pre-tax loss. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Dec. 28, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 6. Commitments and contingencies In connection with insurance policies and other contracts, the Company has outstanding standby letters of credit totaling $4,276 as of December 28, 2019. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business, none of which is expected to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows on an individual basis or in the aggregate. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 9 Months Ended |
Dec. 28, 2019 | |
Accumulated other comprehensive loss | |
Accumulated other comprehensive loss | 7. Accumulated other comprehensive loss Accumulated other comprehensive loss (“AOCL”) consists of changes in our foreign currency forward contracts, pension liability adjustment, and foreign currency translation. The components of AOCL, net of tax, are shown below for the thirty-nine weeks ended December 28, 2019: Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) Other comprehensive (loss) income before reclassifications, net of tax (1,425) 12 (136) (1,549) Amounts reclassified to earnings, net of tax 910 — — 910 Net current period other comprehensive (loss) income (515) 12 (136) (639) Balance at December 28, 2019 $ (1,482) $ (1,821) $ (23,468) $ (26,771) Amounts reclassified from AOCL to earnings for the foreign currency forward contracts category are generally included in cost of sales in the Company’s consolidated statements of operations. For a description of the Company’s use of foreign currency forward contracts, refer to Note 8. |
Foreign currency forward contra
Foreign currency forward contracts | 9 Months Ended |
Dec. 28, 2019 | |
Foreign currency forward contracts. | |
Foreign currency forward contracts | 8. Foreign currency forward contracts The Company’s international operations and purchases of inventory products from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly-owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815. In the Elfa segment, we utilize foreign currency forward contracts to hedge purchases, primarily of raw materials, that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Forward contracts in the Elfa segment are economic hedges and are not designated as cash flow hedges as defined by ASC 815. During the thirty-nine weeks ended December 28, 2019 and December 29, 2018, the TCS segment used forward contracts for 87% and 97% of inventory purchases in Swedish krona, respectively. Generally, the Company’s foreign currency forward contracts have terms from 1 to 24 months and require the Company to exchange currencies at agreed-upon rates at settlement. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company accounts for its foreign currency hedging instruments in the TCS segment as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedging instruments that are considered to be effective, as defined, are recorded in other comprehensive (loss) income until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company assessed the effectiveness of the foreign currency hedge instruments and determined the foreign currency hedge instruments were highly effective during the thirty-nine weeks ended December 28, 2019 and December 29, 2018. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as SG&A on the consolidated statements of operations; however, during the thirty-nine weeks ended December 28, 2019, the Company did not recognize any amount associated with the change in fair value of forward contracts not designated as hedging instruments, as the Company had none of these instruments outstanding. The Company had a $1,482 loss in accumulated other comprehensive loss related to foreign currency hedge instruments at December 28, 2019, of which $1,040 represents an unrealized loss for settled foreign currency hedge instruments related to inventory on hand as of December 28, 2019. The Company expects the unrealized loss of $1,040, net of taxes, to be reclassified into earnings over the next 12 months as the underlying inventory is sold to the end customer. The change in fair value of the Company’s foreign currency hedge instruments that qualify as cash flow hedges and are included in accumulated other comprehensive loss, net of taxes, are presented in Note 7 of these financial statements. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Dec. 28, 2019 | |
Fair value measurements | |
Fair value measurements | 9. Fair value measurements Under GAAP, the Company is required to a) measure certain assets and liabilities at fair value or b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: · Level 1—Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. · Level 2—Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. As of December 28, 2019, March 30, 2019 and December 29, 2018, the Company held certain items that are required to be measured at fair value on a recurring basis. These included the nonqualified retirement plan, which consists of investments purchased by employee contributions to retirement savings accounts. The fair value amount of the nonqualified retirement plan is measured at fair value using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of contracts it holds. The following items are measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820, Fair Value Measurements : December 28, March 30, December 29, Description Balance Sheet Location 2019 2019 2018 Assets Nonqualified retirement plan N/A Other current assets $ 6,249 $ 5,810 $ 5,156 Foreign currency forward contracts Level 2 Other current assets — — 35 Total assets $ 6,249 $ 5,810 $ 5,191 The fair value of long-term debt was estimated using quoted prices as well as recent transactions for similar types of borrowing arrangements (Level 2 valuations). As of December 28, 2019, March 30, 2019 and December 29, 2018, the estimated fair value of the Company’s long-term debt, including current maturities, was $299,579, $274,753, and $292,961, respectively. |
Segment reporting
Segment reporting | 9 Months Ended |
Dec. 28, 2019 | |
Segment reporting | |
Segment reporting | 10. Segment reporting The Company’s reportable segments were determined on the same basis as how management evaluates performance internally by the Chief Operating Decision Maker (“CODM”). The Company has determined that the Chief Executive Officer is the CODM and the Company’s two reportable segments consist of TCS and Elfa. The TCS segment includes the Company’s retail stores, website and call center, as well as the installation and organization services business. The Elfa segment includes the manufacturing business that produces the elfa ® brand products that are sold domestically exclusively through the TCS segment, as well as on a wholesale basis in approximately 30 countries around the world with a concentration in the Nordic region of Europe. The intersegment sales in the Elfa column represent elfa ® product sales to the TCS segment. These sales and the related gross margin on merchandise recorded in TCS inventory balances at the end of the period are eliminated for consolidation purposes in the Eliminations column. The net sales to third parties in the Elfa column represent sales to customers outside of the United States. The Company has determined that adjusted earnings before interest, tax, depreciation, and amortization (“Adjusted EBITDA”) is the profit or loss measure that the CODM uses to make resource allocation decisions and evaluate segment performance. Adjusted EBITDA assists management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations and, therefore, are not included in measuring segment performance. Adjusted EBITDA is calculated in accordance with the Senior Secured Term Loan Facility and the Revolving Credit Facility and we define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments that we do not consider in our evaluation of ongoing operating performance from period to period. Thirteen Weeks Ended December 28, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 211,971 $ 16,686 $ — $ 228,657 Intersegment sales — 21,385 (21,385) — Adjusted EBITDA 17,924 6,118 (2,035) 22,007 Interest expense, net 5,056 78 — 5,134 Assets (1) 1,049,889 119,321 (26,928) 1,142,282 Thirteen Weeks Ended December 29, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 204,899 $ 16,738 $ — $ 221,637 Intersegment sales — 22,369 (22,369) — Adjusted EBITDA 19,014 4,994 (2,192) 21,816 Interest expense, net 5,957 51 — 6,008 Assets (1) 671,865 105,491 (5,334) 772,022 Thirty-Nine Weeks Ended December 28, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 628,282 $ 46,327 $ — $ 674,609 Intersegment sales — 53,800 (53,800) — Adjusted EBITDA 46,820 14,155 (5,899) 55,076 Interest expense, net 15,960 285 — 16,245 Assets (1) 1,049,889 119,321 (26,928) 1,142,282 Thirty-Nine Weeks Ended December 29, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 593,896 $ 48,017 $ — $ 641,913 Intersegment sales — 47,414 (47,414) — Adjusted EBITDA 50,345 10,432 (2,223) 58,554 Interest expense, net 21,097 196 — 21,293 Assets (1) 671,865 105,491 (5,334) 772,022 (1) Tangible assets in the Elfa column are located outside of the United States. A reconciliation of income (loss) before taxes to Adjusted EBITDA is set forth below: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 28, December 29, December 28, December 29, 2019 2018 2019 2018 Income (loss) before taxes $ 4,298 $ 5,395 $ 3,387 $ (191) Add: Depreciation and amortization 9,689 8,887 28,137 27,352 Interest expense, net 5,134 6,008 16,245 21,293 Pre-opening costs (a) 2,482 691 5,988 1,918 Non-cash lease expense (b) (355) 101 (1,532) (1,117) Stock-based compensation (c) 799 632 2,575 1,987 Loss on extinguishment of debt (d) — — — 2,082 Foreign exchange (gains) losses (e) (37) 22 (98) 69 Optimization Plan implementation charges (f) — — — 4,864 Elfa France closure (g) (1) — 402 — Other adjustments (h) (2) 80 (28) 297 Adjusted EBITDA $ 22,007 $ 21,816 $ 55,076 $ 58,554 (a) Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. In the thirteen and thirty-nine weeks ended December 28, 2019, lease expenses associated with the opening of the second distribution center were excluded from Non-cash lease expense and included in Pre-opening costs. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility in September 2018, which we do not consider in our evaluation of our ongoing operations. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Charges incurred to implement our four-part optimization plan to drive improved sales and profitability, launched during fiscal 2017 (the “Optimization Plan”), which include certain consulting costs recorded in SG&A in the first quarter of fiscal 2018, which we do not consider in our evaluation of ongoing performance. (g) Charges related to the closure of Elfa France operations in the second quarter of fiscal 2019, which we do not consider in our evaluation of ongoing performance . (h) Other adjustments include amounts our management does not consider in our evaluation of our ongoing operations, including certain severance and other charges. |
Description of business and b_2
Description of business and basis of presentation (Policies) | 9 Months Ended |
Dec. 28, 2019 | |
Description of business and basis of presentation | |
Seasonality | Seasonality The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the thirty-nine weeks ended December 28, 2019 are not necessarily indicative of the operating results for the full year. The Company has historically realized a higher portion of net sales, operating income, and cash flows from operations in the fourth fiscal quarter, attributable primarily to the timing and impact of Our Annual elfa ® Sale, which traditionally starts in late December and runs into February. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , to revise lease accounting guidance. The update requires most leases to be recorded on the balance sheet as a lease liability, with a corresponding right-of-use asset, whereas these leases previously had an off-balance sheet classification. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019 and elected certain practical expedients permitted under the transition guidance, including the package of practical expedients; however, the Company did not elect the hindsight practical expedient. Additionally, the Company elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. The adoption of ASU 2016-02 resulted in an increase in total assets and total liabilities of $352,059 at transition. However, the adoption of this standard did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. See Note 3 for further discussion on leases. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which is intended to improve and simplify hedge accounting and improve the disclosures of hedging arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, the guidance on share-based payments to nonemployees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In July 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to determine which implementation costs to capitalize as assets. A customer’s accounting for the costs of the hosting component of the arrangement are not affected by the new guidance. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. |
Detail of certain balance she_2
Detail of certain balance sheet accounts (Tables) | 9 Months Ended |
Dec. 28, 2019 | |
Detail of certain balance sheet accounts | |
Schedule of detail of certain balance sheet accounts | December 28, March 30, December 29, 2019 2019 2018 Accounts receivable, net: Trade receivables, net $ 17,127 $ 16,730 $ 15,150 Credit card receivables 10,718 7,244 10,407 Other receivables 1,593 1,594 3,992 $ 29,438 $ 25,568 $ 29,549 Inventory: Finished goods $ 134,487 $ 103,774 $ 110,769 Raw materials 4,490 4,282 4,762 Work in progress 602 594 475 $ 139,579 $ 108,650 $ 116,006 Accrued liabilities: Accrued payroll, benefits and bonuses $ 22,270 $ 19,771 $ 21,406 Unearned revenue 13,579 10,744 10,941 Accrued transaction and property tax 12,348 12,249 9,767 Gift cards and store credits outstanding 10,180 8,777 9,562 Accrued lease liabilities — 4,882 4,793 Accrued interest 1,540 209 1,844 Other accrued liabilities 7,741 10,531 9,462 $ 67,658 $ 67,163 $ 67,775 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 28, 2019 | |
Leases | |
Schedule of components of lease costs | The components of lease costs for the thirteen and thirty-nine weeks ended December 28, 2019 were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended Operating lease costs $ 22,842 $ 67,840 Variable lease costs 270 903 Total lease costs $ 23,112 $ 68,743 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to our leases for the thirteen and thirty-nine weeks ended December 28, 2019 were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 22,800 $ 67,321 Additions to right-of-use assets $ 2,842 $ 41,976 |
Schedule of weighted average remaining operating lease term and incremental borrowing rate | Weighted average remaining operating lease term and incremental borrowing rate as of December 28, 2019 were as follows: Weighted average remaining lease term (years) Weighted average incremental borrowing rate % |
Schedule of future minimum lease payments under our operating lease liabilities | Operating leases (1) Within 1 year (remaining) $ 23,280 2 years 92,567 3 years 79,184 4 years 68,985 5 years 61,050 Thereafter 201,683 Total lease payments $ 526,749 Less amount representing interest (143,050) Total lease liability $ 383,699 Less current lease liability (63,163) Total noncurrent lease liability $ 320,536 |
Net income per common share (Ta
Net income per common share (Tables) | 9 Months Ended |
Dec. 28, 2019 | |
Net income per common share | |
Schedule of reconciliation of net loss and the number of shares used in the basic and diluted net loss per common share calculations: | Thirteen Weeks Ended Thirty-Nine Weeks Ended December 28, December 29, December 28, December 29, 2019 2018 2019 2018 Numerator: Net income $ 2,412 $ 9,321 $ 1,959 $ 5,798 Denominator: Weighted-average common shares — basic 48,313,671 48,139,582 48,987,525 48,139,132 Options and other dilutive securities 56,747 241,873 185,108 268,205 Weighted-average common shares — diluted 48,370,418 48,381,455 49,172,633 48,407,337 Net income per common share — basic and diluted $ 0.05 $ 0.19 $ 0.04 $ 0.12 Antidilutive securities not included: Stock options outstanding 2,527,745 2,408,068 2,364,692 2,450,246 Nonvested restricted stock awards 310,422 148,310 164,556 29,251 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 9 Months Ended |
Dec. 28, 2019 | |
Accumulated other comprehensive loss | |
Schedule of components of AOCL, net of tax | Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) Other comprehensive (loss) income before reclassifications, net of tax (1,425) 12 (136) (1,549) Amounts reclassified to earnings, net of tax 910 — — 910 Net current period other comprehensive (loss) income (515) 12 (136) (639) Balance at December 28, 2019 $ (1,482) $ (1,821) $ (23,468) $ (26,771) |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Dec. 28, 2019 | |
Fair value measurements | |
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820 | December 28, March 30, December 29, Description Balance Sheet Location 2019 2019 2018 Assets Nonqualified retirement plan N/A Other current assets $ 6,249 $ 5,810 $ 5,156 Foreign currency forward contracts Level 2 Other current assets — — 35 Total assets $ 6,249 $ 5,810 $ 5,191 |
Segment reporting (Tables)
Segment reporting (Tables) | 9 Months Ended |
Dec. 28, 2019 | |
Segment reporting | |
Schedule of segment reporting | Thirteen Weeks Ended December 28, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 211,971 $ 16,686 $ — $ 228,657 Intersegment sales — 21,385 (21,385) — Adjusted EBITDA 17,924 6,118 (2,035) 22,007 Interest expense, net 5,056 78 — 5,134 Assets (1) 1,049,889 119,321 (26,928) 1,142,282 Thirteen Weeks Ended December 29, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 204,899 $ 16,738 $ — $ 221,637 Intersegment sales — 22,369 (22,369) — Adjusted EBITDA 19,014 4,994 (2,192) 21,816 Interest expense, net 5,957 51 — 6,008 Assets (1) 671,865 105,491 (5,334) 772,022 Thirty-Nine Weeks Ended December 28, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 628,282 $ 46,327 $ — $ 674,609 Intersegment sales — 53,800 (53,800) — Adjusted EBITDA 46,820 14,155 (5,899) 55,076 Interest expense, net 15,960 285 — 16,245 Assets (1) 1,049,889 119,321 (26,928) 1,142,282 Thirty-Nine Weeks Ended December 29, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 593,896 $ 48,017 $ — $ 641,913 Intersegment sales — 47,414 (47,414) — Adjusted EBITDA 50,345 10,432 (2,223) 58,554 Interest expense, net 21,097 196 — 21,293 Assets (1) 671,865 105,491 (5,334) 772,022 (1) Tangible assets in the Elfa column are located outside of the United States. |
Summary of reconciliation of Adjusted EBITDA by segment to income before taxes | Thirteen Weeks Ended Thirty-Nine Weeks Ended December 28, December 29, December 28, December 29, 2019 2018 2019 2018 Income (loss) before taxes $ 4,298 $ 5,395 $ 3,387 $ (191) Add: Depreciation and amortization 9,689 8,887 28,137 27,352 Interest expense, net 5,134 6,008 16,245 21,293 Pre-opening costs (a) 2,482 691 5,988 1,918 Non-cash lease expense (b) (355) 101 (1,532) (1,117) Stock-based compensation (c) 799 632 2,575 1,987 Loss on extinguishment of debt (d) — — — 2,082 Foreign exchange (gains) losses (e) (37) 22 (98) 69 Optimization Plan implementation charges (f) — — — 4,864 Elfa France closure (g) (1) — 402 — Other adjustments (h) (2) 80 (28) 297 Adjusted EBITDA $ 22,007 $ 21,816 $ 55,076 $ 58,554 (a) Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. In the thirteen and thirty-nine weeks ended December 28, 2019, lease expenses associated with the opening of the second distribution center were excluded from Non-cash lease expense and included in Pre-opening costs. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility in September 2018, which we do not consider in our evaluation of our ongoing operations. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Charges incurred to implement our four-part optimization plan to drive improved sales and profitability, launched during fiscal 2017 (the “Optimization Plan”), which include certain consulting costs recorded in SG&A in the first quarter of fiscal 2018, which we do not consider in our evaluation of ongoing performance. (g) Charges related to the closure of Elfa France operations in the second quarter of fiscal 2019, which we do not consider in our evaluation of ongoing performance . (h) Other adjustments include amounts our management does not consider in our evaluation of our ongoing operations, including certain severance and other charges. |
Description of business and b_3
Description of business and basis of presentation (Details) | Dec. 28, 2019ft²storestatecountry |
Number of stores | store | 93 |
Average size of stores (in square feet) | 25,000 |
Average selling square feet in stores (in square feet) | 19,000 |
Number of states | state | 33 |
Elfa | |
Number of countries in which products are sold on wholesale basis | country | 30 |
Description of business and b_4
Description of business and basis of presentation - Leases (Details) $ in Thousands | 9 Months Ended |
Dec. 28, 2019USD ($) | |
Recent accounting pronouncements | |
Practical expedients, package | true |
Hindsight practical expedient | false |
Operating Lease, Liability | $ 383,699 |
Operating Lease, Right-of-Use Asset | 350,922 |
ASU 2016-02 | Adjustment | |
Recent accounting pronouncements | |
Operating Lease, Liability | 352,059 |
Operating Lease, Right-of-Use Asset | $ 352,059 |
Detail of certain balance she_3
Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | |
Accounts receivable, net: | |||
Trade receivables, net | $ 17,127 | $ 16,730 | $ 15,150 |
Credit card receivables | 10,718 | 7,244 | 10,407 |
Other receivables | 1,593 | 1,594 | 3,992 |
Accounts receivable, net | 29,438 | 25,568 | 29,549 |
Inventory: | |||
Finished goods | 134,487 | 103,774 | 110,769 |
Raw materials | 4,490 | 4,282 | 4,762 |
Work in progress | 602 | 594 | 475 |
Inventory | 139,579 | 108,650 | 116,006 |
Accrued Liabilities: | |||
Accrued payroll, benefits and bonuses | 22,270 | 19,771 | 21,406 |
Unearned revenue | 13,579 | 10,744 | 10,941 |
Accrued transaction and property tax | 12,348 | 12,249 | 9,767 |
Gift cards and store credits outstanding | 10,180 | 8,777 | 9,562 |
Accrued lease liabilities | 4,882 | 4,793 | |
Accrued interest | 1,540 | 209 | 1,844 |
Other accrued liabilities | 7,741 | 10,531 | 9,462 |
Accrued liabilities | 67,658 | $ 67,163 | $ 67,775 |
Revenue recognized included in unearned income | 10,382 | ||
Revenue recognized included in Gift Cards and Store Credits | $ 2,523 |
Leases (Details)
Leases (Details) | Dec. 28, 2019store |
Leases | |
Number of store locations | 93 |
Minimum | |
Leases | |
Expiration term | 1 year |
Maximum | |
Leases | |
Expiration term | 20 years |
Components of lease costs (Deta
Components of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 28, 2019 | Dec. 28, 2019 | |
Lease costs | ||
Operating lease costs | $ 22,842 | $ 67,840 |
Variable lease costs | 270 | 903 |
Total lease costs | $ 23,112 | $ 68,743 |
Supplemental cash flow informat
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 28, 2019 | Dec. 28, 2019 | |
Leases | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 22,800 | $ 67,321 |
Additions to right-of-use assets | $ 2,842 | $ 41,976 |
Weighted average remaining oper
Weighted average remaining operating lease term and incremental borrowing rate (Details) | Dec. 28, 2019 |
Leases | |
Weighted average remaining lease term (years) | 7 years 2 months 12 days |
Weighted average incremental borrowing rate | 8.80% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Operating leases | |
Within 1 year (remaining) | $ 23,280 |
2 years | 92,567 |
3 years | 79,184 |
4 years | 68,985 |
5 years | 61,050 |
Thereafter | 201,683 |
Total lease payments | 526,749 |
Less amount representing interest | (143,050) |
Total lease liability | 383,699 |
Less current lease liability | (63,163) |
Total non-current lease liability | 320,536 |
Amount of minimum lease payments for leases signed but not yet commenced | $ 12,201 |
Net income per common share (De
Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Numerator: | ||||||||
Net income (loss) | $ 2,412 | $ 3,646 | $ (4,099) | $ 9,321 | $ 3,241 | $ (6,764) | $ 1,959 | $ 5,798 |
Denominator: | ||||||||
Weighted-average common shares - basic (in shares) | 48,313,671 | 48,139,582 | 48,987,525 | 48,139,132 | ||||
Options and other dilutive securities | 56,747 | 241,873 | 185,108 | 268,205 | ||||
Weighted Average Number of Shares Outstanding, Diluted, Total | 48,370,418 | 48,381,455 | 49,172,633 | 48,407,337 | ||||
Net income per common share—basic and diluted | $ 0.05 | $ 0.19 | $ 0.04 | $ 0.12 | ||||
Stock options outstanding | ||||||||
Antidilutive securities not included: | ||||||||
Antidilutive securities | 2,527,745 | 2,408,068 | 2,364,692 | 2,450,246 | ||||
Nonvested restricted stock awards | ||||||||
Antidilutive securities not included: | ||||||||
Antidilutive securities | 310,422 | 148,310 | 164,556 | 29,251 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income taxes | ||||
Provision (benefit) for income taxes | $ 1,886 | $ (3,926) | $ 1,428 | $ (5,989) |
U.S. federal corporate tax rate | 21.00% | 21.00% | ||
Effective income tax rate (as a percent) | 43.90% | (72.80%) | 42.20% | 3135.60% |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Standby letters of credit | |
Commitments and contingencies | |
Amount outstanding | $ 4,276 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss (Details) $ in Thousands | 9 Months Ended |
Dec. 28, 2019USD ($) | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | $ (26,132) |
Other comprehensive (loss) income before reclassifications, net of tax | (1,549) |
Amounts reclassified to earnings, net of tax | 910 |
Net current period other comprehensive (loss) income | (639) |
Balance end of period | (26,771) |
Pension liability adjustment | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | (1,833) |
Other comprehensive (loss) income before reclassifications, net of tax | 12 |
Net current period other comprehensive (loss) income | 12 |
Balance end of period | (1,821) |
Foreign currency translation | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | (23,332) |
Other comprehensive (loss) income before reclassifications, net of tax | (136) |
Net current period other comprehensive (loss) income | (136) |
Balance end of period | (23,468) |
Foreign currency hedge instruments | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | (967) |
Other comprehensive (loss) income before reclassifications, net of tax | (1,425) |
Amounts reclassified to earnings, net of tax | 910 |
Net current period other comprehensive (loss) income | (515) |
Balance end of period | $ (1,482) |
Foreign currency forward cont_2
Foreign currency forward contracts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 87.00% | 97.00% |
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Loss associated with forward contracts not designated as hedge instruments | $ 0 | |
Foreign currency hedge instruments | Designated as Hedging Instrument | Cash Flow Hedging | ||
Unrealized loss for settled foreign currency hedge instruments | (1,040) | |
Unrealized loss to be reclassified into earnings over the next 12 months | (1,040) | |
Loss in accumulated other comprehensive loss related to foreign currency hedge instruments | $ (1,482) | |
Minimum | Foreign currency forward contracts | ||
Term of contract | 1 month | 1 month |
Maximum | Foreign currency forward contracts | ||
Term of contract | 24 months | 24 months |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Fair value | |||
Liabilities | |||
Estimated fair value of long-term debt, including current maturities | $ 299,579 | $ 274,753 | $ 292,961 |
Recurring | |||
Assets | |||
Total assets | 6,249 | 5,810 | 5,191 |
Recurring | Other current assets | |||
Assets | |||
Nonqualified retirement plan | $ 6,249 | $ 5,810 | 5,156 |
Recurring | Level 2 | Other current assets | |||
Assets | |||
Foreign currency forward contracts | $ 35 |
Segment reporting - (Details)
Segment reporting - (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 28, 2019USD ($)country | Dec. 29, 2018USD ($) | Dec. 28, 2019USD ($)segmentcountry | Dec. 29, 2018USD ($) | Mar. 30, 2019USD ($) | |
Segment reporting | |||||
Number of reportable segments | segment | 2 | ||||
Segment reporting | |||||
Sales | $ 228,657 | $ 221,637 | $ 674,609 | $ 641,913 | |
Adjusted EBITDA | 22,007 | 21,816 | 55,076 | 58,554 | |
Interest expense, net | 5,134 | 6,008 | 16,245 | 21,293 | |
Assets | $ 1,142,282 | 772,022 | $ 1,142,282 | 772,022 | $ 748,744 |
Elfa | |||||
Segment reporting | |||||
Number of countries in which products are sold on wholesale basis | country | 30 | 30 | |||
Operating segments | TCS | |||||
Segment reporting | |||||
Sales | $ 211,971 | 204,899 | $ 628,282 | 593,896 | |
Adjusted EBITDA | 17,924 | 19,014 | 46,820 | 50,345 | |
Interest expense, net | 5,056 | 5,957 | 15,960 | 21,097 | |
Assets | 1,049,889 | 671,865 | 1,049,889 | 671,865 | |
Operating segments | Elfa | |||||
Segment reporting | |||||
Sales | 16,686 | 16,738 | 46,327 | 48,017 | |
Adjusted EBITDA | 6,118 | 4,994 | 14,155 | 10,432 | |
Interest expense, net | 78 | 51 | 285 | 196 | |
Assets | 119,321 | 105,491 | 119,321 | 105,491 | |
lntersegment | |||||
Segment reporting | |||||
Sales | (21,385) | (22,369) | (53,800) | (47,414) | |
Adjusted EBITDA | (2,035) | (2,192) | (5,899) | (2,223) | |
Assets | (26,928) | (5,334) | (26,928) | (5,334) | |
lntersegment | Elfa | |||||
Segment reporting | |||||
Sales | $ 21,385 | $ 22,369 | $ 53,800 | $ 47,414 |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Segment reporting | ||||
Income (loss) before taxes | $ 4,298 | $ 5,395 | $ 3,387 | $ (191) |
Depreciation and amortization | 9,689 | 8,887 | 28,137 | 27,352 |
Interest expense, net | 5,134 | 6,008 | 16,245 | 21,293 |
Pre-opening costs | 2,482 | 691 | 5,988 | 1,918 |
Non-cash lease expense | (355) | 101 | (1,532) | (1,117) |
Stock-based compensation | 799 | 632 | 2,575 | 1,987 |
Loss on extinguishment of debt | 2,082 | |||
Foreign exchange (gains) losses | (37) | 22 | (98) | 69 |
Optimization Plan implementation charges | 4,864 | |||
Elfa France closure | (1) | 402 | ||
Other adjustments | (2) | 80 | (28) | 297 |
Total Adjusted EBITDA | 22,007 | 21,816 | 55,076 | 58,554 |
Operating segments | TCS | ||||
Segment reporting | ||||
Interest expense, net | 5,056 | 5,957 | 15,960 | 21,097 |
Total Adjusted EBITDA | 17,924 | 19,014 | 46,820 | 50,345 |
Operating segments | Elfa | ||||
Segment reporting | ||||
Interest expense, net | 78 | 51 | 285 | 196 |
Total Adjusted EBITDA | 6,118 | 4,994 | 14,155 | 10,432 |
lntersegment | ||||
Segment reporting | ||||
Total Adjusted EBITDA | $ (2,035) | $ (2,192) | $ (5,899) | $ (2,223) |