Exhibit 99.1
Tile Shop Holdings, Inc
Condensed Consolidated Statements of Income
(unaudited)
($ in 000's, except share and per share)
| 2012 | ||||||||||||||||
| Historical Results | Three months ended March 31, 2012 | Three months ended June 30, 2012 | Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||
| Net sales | $ | 45,861 | $ | 46,314 | $ | 44,288 | $ | 136,463 | ||||||||
| Cost of sales | 12,173 | 12,656 | 12,197 | 37,025 | ||||||||||||
| Gross profit | 33,689 | 33,658 | 32,092 | 99,438 | ||||||||||||
| Selling, general and administrative expenses | 22,064 | 22,642 | 23,899 | 68,606 | ||||||||||||
| Deferred compensation expense(1) | 1,160 | 113 | 2,624 | 3,897 | ||||||||||||
| Income from operations | 10,464 | 10,903 | 5,569 | 26,935 | ||||||||||||
| Interest expense | 90 | 85 | 450 | 626 | ||||||||||||
| Other expense (income) | (7 | ) | (15 | ) | (1 | ) | (23 | ) | ||||||||
| Income before income taxes | 10,381 | 10,832 | 5,119 | 26,332 | ||||||||||||
| Benefit (provision) for income taxes | (248 | ) | (175 | ) | 4,722 | 4,299 | ||||||||||
| Net income | $ | 10,133 | $ | 10,657 | $ | 9,842 | $ | 30,631 | ||||||||
| Weighted average basic shares outstanding | 32,000,000 | 32,000,000 | 36,581,888 | 33,544,079 | ||||||||||||
| Weighted average diluted shares outstanding | 32,000,000 | 32,000,000 | 36,582,944 | 33,544,079 | ||||||||||||
| Basic earnings per share | $ | 0.32 | $ | 0.33 | $ | 0.27 | $ | 0.91 | ||||||||
| Diluted earnings per share | $ | 0.32 | $ | 0.33 | $ | 0.27 | $ | 0.91 | ||||||||
| Pro Forma Results | ||||||||||||||||
| Pro forma computation related to conversion to C Corporation for income tax purposes | ||||||||||||||||
| Historical income before income taxes | $ | 10,381 | $ | 10,832 | $ | 5,119 | $ | 26,332 | ||||||||
| Pro forma benefit (provision) for income taxes | (4,360 | ) | (4,549 | ) | (2,150 | ) | (11,060 | ) | ||||||||
| Pro forma net income | $ | 6,021 | $ | 6,283 | $ | 2,969 | $ | 15,272 | ||||||||
| Pro forma weighted average basic shares outstanding | 42,534,884 | 42,534,884 | 42,536,387 | 42,535,391 | ||||||||||||
| Pro forma weighted average diluted shares outstanding | 42,534,884 | 42,534,884 | 42,537,444 | 42,535,391 | ||||||||||||
| Pro forma basic earnings per share | $ | 0.14 | $ | 0.15 | $ | 0.07 | $ | 0.36 | ||||||||
| Pro forma diluted earnings per share | $ | 0.14 | $ | 0.15 | $ | 0.07 | $ | 0.36 | ||||||||
| Adjusted EBITDA | ||||||||||||||||
| Net income | $ | 10,133 | $ | 10,657 | $ | 9,842 | $ | 30,631 | ||||||||
| Interest expense | 90 | 85 | 450 | 626 | ||||||||||||
| Income tax benefit | 248 | 175 | (4,722 | ) | (4,299 | ) | ||||||||||
| Amortization/Depreciation | 2,242 | 2,551 | 2,750 | 7,544 | ||||||||||||
| Stock option expense | - | - | 263 | 263 | ||||||||||||
| Deferred compensation expense(1) | 1,160 | 113 | 2,624 | 3,897 | ||||||||||||
| Adjusted EBITDA | $ | 13,873 | $ | 13,581 | $ | 11,207 | $ | 38,662 | ||||||||
(1) Deferred compensation expense was related to The Tile Shop’s historical incentive deferred compensation plan, or the 2006 Plan. In connection with the buisness combination there was an agreement to make a lump-sum cash payment to each former participant in the 2006 Plan, as well as accelerate vesting of certain membership interests in The Tile Shop. Immediately following the Business Combination, the 2006 Plan was terminated. We will not recognize any additional expense related to the foregoing, and therefore these expenses have been added back for adjusted EBITDA.
Exhibit 99.1
Tile Shop Holdings, Inc
Condensed Consolidated Statements of Income
(unaudited)
($ in 000's, except share and per share)
| 2011 | ||||||||||||||||||||
| Historical Results | Three months ended March 31, 2011 | Three months ended June 30, 2011 | Three months ended September 30, 2011 | Three months ended December 31, 2011 | Year ended December 31, 2011 | |||||||||||||||
| Net sales | $ | 37,875 | $ | 40,056 | $ | 37,084 | $ | 37,702 | $ | 152,717 | ||||||||||
| Cost of sales | 9,480 | 10,945 | 9,873 | 10,023 | 40,321 | |||||||||||||||
| Gross profit | 28,395 | 29,111 | 27,211 | 27,679 | 112,396 | |||||||||||||||
| Selling, general and administrative expenses | 18,903 | 19,330 | 19,992 | 20,143 | 78,368 | |||||||||||||||
| Deferred compensation expense(1) | 236 | 357 | 374 | 448 | 1,415 | |||||||||||||||
| Income from operations | 9,256 | 9,424 | 6,845 | 7,087 | 32,613 | |||||||||||||||
| Interest expense | 101 | 99 | 97 | 146 | 443 | |||||||||||||||
| Other expense (income) | 25 | 4 | 7 | (114 | ) | (78 | ) | |||||||||||||
| Income before income taxes | 9,181 | 9,330 | 6,755 | 6,828 | 32,093 | |||||||||||||||
| Benefit (provision) for income taxes | (212 | ) | (214 | ) | (153 | ) | (154 | ) | (733 | ) | ||||||||||
| Net income | $ | 8,969 | $ | 9,116 | $ | 6,602 | $ | 6,673 | $ | 31,360 | ||||||||||
| Weighted average basic shares outstanding | 32,330,000 | 32,330,000 | 32,330,000 | 32,114,747 | 32,275,667 | |||||||||||||||
| Weighted average diluted shares outstanding | 32,330,000 | 32,330,000 | 32,330,000 | 32,114,747 | 32,275,667 | |||||||||||||||
| Basic earnings per share | $ | 0.28 | $ | 0.28 | $ | 0.20 | $ | 0.21 | $ | 0.97 | ||||||||||
| Diluted earnings per share | $ | 0.28 | $ | 0.28 | $ | 0.20 | $ | 0.21 | $ | 0.97 | ||||||||||
| Pro Forma Results | ||||||||||||||||||||
| Pro forma computation r]elated to conversion to C Corporation for income tax purposes | ||||||||||||||||||||
| Historical income before income taxes | $ | 9,181 | $ | 9,330 | $ | 6,755 | $ | 6,828 | $ | 32,093 | ||||||||||
| Pro forma benefit (provision) for income taxes | (3,856 | ) | (3,918 | ) | (2,837 | ) | (2,868 | ) | (13,479 | ) | ||||||||||
| Pro forma net income | $ | 5,325 | $ | 5,411 | $ | 3,918 | $ | 3,960 | $ | 18,614 | ||||||||||
| Pro forma weighted average basic shares outstanding | 42,534,884 | 42,534,884 | 42,534,884 | 42,534,884 | 42,534,884 | |||||||||||||||
| Pro forma weighted average diluted shares outstanding | 42,534,884 | 42,534,884 | 42,534,884 | 42,534,884 | 42,534,884 | |||||||||||||||
| Pro forma basic earnings per share | $ | 0.13 | $ | 0.13 | $ | 0.09 | $ | 0.09 | $ | 0.44 | ||||||||||
| Pro forma diluted earnings per share | $ | 0.13 | $ | 0.13 | $ | 0.09 | $ | 0.09 | $ | 0.44 | ||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| Net income | $ | 8,969 | $ | 9,116 | $ | 6,602 | $ | 6,673 | $ | 31,360 | ||||||||||
| Interest expense | 101 | 99 | 97 | 146 | 443 | |||||||||||||||
| Income tax benefit | 212 | 214 | 153 | 154 | 733 | |||||||||||||||
| Amortization/Depreciation | 2,133 | 1,904 | 2,121 | 2,493 | 8,652 | |||||||||||||||
| Stock option expense | - | - | - | - | - | |||||||||||||||
| Deferred compensation expense(1) | 236 | 357 | 374 | 448 | 1,415 | |||||||||||||||
| Adjusted EBITDA | $ | 11,651 | $ | 11,690 | $ | 9,347 | $ | 9,914 | $ | 42,602 | ||||||||||
(1) Deferred compensation expense was related to The Tile Shop’s historical incentive deferred compensation plan, or the 2006 Plan. In connection with the buisness combination there was an agreement to make a lump-sum cash payment to each former participant in the 2006 Plan, as well as accelerate vesting of certain membership interests in The Tile Shop. Immediately following the Business Combination, the 2006 Plan was terminated. We will not recognize any additional expense related to the foregoing, and therefore these expenses have been added back for adjusted EBITDA.