Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35629 | |
Entity Registrant Name | TILE SHOP HOLDINGS, INC. | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 45-5538095 | |
Entity Address, Address Line 1 | 14000 Carlson Parkway | |
Entity Address City Or Town | Plymouth | |
Entity Address State Or Province | MN | |
Entity Address Postal Zip Code | 55441 | |
City Area Code | 763 | |
Local Phone Number | 852-2950 | |
Security 12b Title | Common Stock, $0.0001 par value | |
Trading Symbol | TTSH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,561,554 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001552800 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 14,592 | $ 5,948 |
Restricted cash | 655 | 1,811 |
Receivables, net | 3,871 | 3,411 |
Inventories | 106,862 | 120,952 |
Income tax receivable | 875 | 3,859 |
Other current assets, net | 9,007 | 10,422 |
Total Current Assets | 135,862 | 146,403 |
Property, plant and equipment, net | 66,938 | 71,095 |
Right of use asset | 114,616 | 118,501 |
Deferred tax assets | 4,530 | 6,536 |
Other assets | 3,493 | 3,287 |
Total Assets | 325,439 | 345,822 |
Current liabilities: | ||
Accounts payable | 24,385 | 23,506 |
Income tax payable | 85 | 3 |
Current portion of lease liability | 27,411 | 27,866 |
Other accrued liabilities | 33,645 | 31,916 |
Total Current Liabilities | 85,526 | 83,291 |
Long-term debt | 20,000 | 45,400 |
Long-term lease liability, net | 98,845 | 103,353 |
Other long-term liabilities | 4,479 | 5,009 |
Total Liabilities | 208,850 | 237,053 |
Stockholders’ Equity: | ||
Common stock, par value $0.0001; authorized: 100,000,000 shares; issued and outstanding: 44,567,055 and 44,377,445 shares, respectively | 4 | 4 |
Preferred stock, par value $0.0001; authorized: 10,000,000 shares; issued and outstanding: 0 shares | ||
Additional paid-in capital | 128,257 | 127,997 |
Accumulated deficit | (11,589) | (19,180) |
Accumulated other comprehensive loss | (83) | (52) |
Total Stockholders' Equity | 116,589 | 108,769 |
Total Liabilities and Stockholders' Equity | $ 325,439 | $ 345,822 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value (per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 44,567,055 | 44,377,445 |
Common stock, shares outstanding | 44,567,055 | 44,377,445 |
Preferred stock, par value (per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 98,557 | $ 107,604 | $ 200,576 | $ 210,075 |
Cost of sales | 35,255 | 36,586 | 71,736 | 72,212 |
Gross profit | 63,302 | 71,018 | 128,840 | 137,863 |
Selling, general and administrative expenses | 55,568 | 61,240 | 116,981 | 123,349 |
Income from operations | 7,734 | 9,778 | 11,859 | 14,514 |
Interest expense | (668) | (201) | (1,466) | (467) |
Income before income taxes | 7,066 | 9,577 | 10,393 | 14,047 |
Provision for income taxes | (1,987) | (2,663) | (2,802) | (3,620) |
Net income | $ 5,079 | $ 6,914 | $ 7,591 | $ 10,427 |
Income per common share: | ||||
Basic | $ 0.12 | $ 0.14 | $ 0.18 | $ 0.21 |
Diluted | $ 0.12 | $ 0.13 | $ 0.17 | $ 0.20 |
Weighted average shares outstanding: | ||||
Basic | 43,363,374 | 50,890,063 | 43,300,962 | 50,802,423 |
Diluted | 43,508,221 | 51,253,543 | 43,465,235 | 51,214,607 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 5,079 | $ 6,914 | $ 7,591 | $ 10,427 |
Currency translation adjustment | (36) | (43) | (31) | (41) |
Other comprehensive income | (36) | (43) | (31) | (41) |
Comprehensive income | $ 5,043 | $ 6,871 | $ 7,560 | $ 10,386 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance at Dec. 31, 2021 | $ 5 | $ 126,920 | $ (4,713) | $ 12 | $ 122,224 |
Beginning balance (in shares) at Dec. 31, 2021 | 51,963,377 | ||||
Issuance of restricted shares (in shares) | 592,396 | ||||
Cancellation of restricted shares (in shares) | (180,746) | ||||
Stock based compensation | 1,054 | 1,054 | |||
Tax withholdings related to net share settlements of stock based compensation awards | (676) | (676) | |||
Tax withholdings related to net share settlements of stock based compensation awards (in shares) | (104,105) | ||||
Foreign currency translation adjustments | (41) | (41) | |||
Net income | 10,427 | 10,427 | |||
Balance at Jun. 30, 2022 | $ 5 | 127,298 | 5,714 | (29) | 132,988 |
Balance (in shares) at Jun. 30, 2022 | 52,270,922 | ||||
Beginning balance at Mar. 31, 2022 | $ 5 | 126,805 | (1,200) | 14 | 125,624 |
Beginning balance (in shares) at Mar. 31, 2022 | 52,112,567 | ||||
Issuance of restricted shares (in shares) | 172,429 | ||||
Cancellation of restricted shares (in shares) | (2,918) | ||||
Stock based compensation | 562 | 562 | |||
Tax withholdings related to net share settlements of stock based compensation awards | (69) | (69) | |||
Tax withholdings related to net share settlements of stock based compensation awards (in shares) | (11,156) | ||||
Foreign currency translation adjustments | (43) | (43) | |||
Net income | 6,914 | 6,914 | |||
Balance at Jun. 30, 2022 | $ 5 | 127,298 | 5,714 | (29) | 132,988 |
Balance (in shares) at Jun. 30, 2022 | 52,270,922 | ||||
Beginning balance at Dec. 31, 2022 | $ 4 | 127,997 | (19,180) | (52) | $ 108,769 |
Beginning balance (in shares) at Dec. 31, 2022 | 44,377,445 | 44,377,445 | |||
Issuance of restricted shares (in shares) | 611,154 | ||||
Cancellation of restricted shares (in shares) | (329,536) | ||||
Stock based compensation | 706 | $ 706 | |||
Tax withholdings related to net share settlements of stock based compensation awards | (446) | (446) | |||
Tax withholdings related to net share settlements of stock based compensation awards (in shares) | (92,008) | ||||
Foreign currency translation adjustments | (31) | (31) | |||
Net income | 7,591 | 7,591 | |||
Balance at Jun. 30, 2023 | $ 4 | 128,257 | (11,589) | (83) | $ 116,589 |
Balance (in shares) at Jun. 30, 2023 | 44,567,055 | 44,567,055 | |||
Beginning balance at Mar. 31, 2023 | $ 4 | 127,975 | (16,668) | (47) | $ 111,264 |
Beginning balance (in shares) at Mar. 31, 2023 | 44,608,983 | ||||
Issuance of restricted shares (in shares) | 115,752 | ||||
Cancellation of restricted shares (in shares) | (153,752) | ||||
Stock based compensation | 301 | 301 | |||
Tax withholdings related to net share settlements of stock based compensation awards | (19) | (19) | |||
Tax withholdings related to net share settlements of stock based compensation awards (in shares) | (3,928) | ||||
Foreign currency translation adjustments | (36) | (36) | |||
Net income | 5,079 | 5,079 | |||
Balance at Jun. 30, 2023 | $ 4 | $ 128,257 | $ (11,589) | $ (83) | $ 116,589 |
Balance (in shares) at Jun. 30, 2023 | 44,567,055 | 44,567,055 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows From Operating Activities | ||
Net income | $ 7,591 | $ 10,427 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,332 | 12,854 |
Amortization of debt issuance costs | 129 | 157 |
Loss on disposals of property, plant and equipment | 7 | |
Impairment charges | 618 | |
Non-cash lease expense | 13,016 | 13,016 |
Stock based compensation | 706 | 1,054 |
Deferred income taxes | 2,006 | 518 |
Changes in operating assets and liabilities: | ||
Receivables, net | (460) | (982) |
Inventories | 14,090 | (12,864) |
Other current assets, net | 1,142 | (378) |
Accounts payable | 984 | (806) |
Income tax receivable / payable | 3,066 | (1,733) |
Accrued expenses and other liabilities | (12,789) | (12,040) |
Net cash provided by operating activities | 41,438 | 9,223 |
Cash Flows From Investing Activities | ||
Purchases of property, plant and equipment | (8,076) | (7,361) |
Net cash used in investing activities | (8,076) | (7,361) |
Cash Flows From Financing Activities | ||
Payments of long-term debt | (40,400) | (10,000) |
Advances on line of credit | 15,000 | 10,000 |
Employee taxes paid for shares withheld | (446) | (676) |
Net cash used in financing activities | (25,846) | (676) |
Effect of exchange rate changes on cash | (28) | (38) |
Net change in cash, cash equivalents and restricted cash | 7,488 | 1,148 |
Cash, cash equivalents and restricted cash beginning of period | 7,759 | 10,013 |
Cash, cash equivalents and restricted cash end of period | 15,247 | 11,161 |
Cash and cash equivalents | 14,592 | 10,506 |
Restricted cash | 655 | 655 |
Cash, cash equivalents and restricted cash end of period | 15,247 | 11,161 |
Supplemental disclosure of cash flow information | ||
Purchases of property, plant and equipment included in accounts payable and accrued expenses | 655 | 90 |
Cash paid for interest | 1,578 | 538 |
Cash (received) paid for income taxes, net | $ (2,271) | $ 4,836 |
Background
Background | 6 Months Ended |
Jun. 30, 2023 | |
Background [Abstract] | |
Background | No te 1: Background Tile Shop Holdings, Inc. (“Holdings,” and together with its wholly owned subsidiaries, the “Company”) was incorporated in Delaware in June 2012. The Company is a specialty retailer of natural stone, man-made and luxury vinyl tiles, setting and maintenance materials, and related accessories in the United States. The Company manufactures its own setting and maintenance materials, such as thinset, grout, and sealers. The Company’s primary market is retail sales to consumers, contractors, designers and home builders. As of June 30, 2023, the Company had 143 stores in 31 states and the District of Columbia, with an average size of approximately 20,000 square feet. The Company has distribution centers located in Michigan, New Jersey, Oklahoma, Virginia and Wisconsin. The Company also has a sourcing office located in China. The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the rules and regulations for reporting on Form 10 - Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature, including the elimination of all intercompany transactions. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31 , 2023 . These statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accounting policies used in preparing these Consolidated Financial Statements are the same as those described in Note 1 to the Consolidated Financial Statements in such Form 10-K. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2023 | |
Revenues [Abstract] | |
Revenues | Note 2: Revenues Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration received in exchange for those goods or services. Sales taxes are excluded from revenues. The following table presents revenues disaggregated by product category: For the three months ended For the six months ended June 30, June 30, 2023 2022 2023 2022 Man-made tiles (1) 54 % 50 % 52 % 50 % Natural stone tiles 22 26 23 25 Setting and maintenance materials 14 15 15 16 Accessories 8 7 8 7 Delivery service 2 2 2 2 Total 100 % 100 % 100 % 100 % (1) Man-made tile revenues include sales of luxury vinyl tile products. The Company generates revenues by selling tile products, setting and maintenance materials, accessories, and delivery services to its customers through its store locations and online. The timing of revenue recognition coincides with the transfer of control of goods and services ordered by the customer, which falls into one of three categories described below: Revenue recognized when an order is placed – If a customer places an order in a store and the contents of their order are available, the Company recognizes revenue concurrent with the exchange of goods for consideration from the customer. Revenue recognized when an order is picked up – If a customer places an order for items held in a centralized distribution center, the Company requests a deposit from the customer at the time they place the order. Subsequently, when the contents of the customer’s order are delivered to the store, the customer returns to the store and picks up the items that were ordered. The Company recognizes revenue on this transaction when the customer picks up their order. Revenue recognized when an order is delivered – If a customer places an order in a store and requests delivery of their order, the Company prepares the contents of their order, initiates the delivery service, and recognizes revenue once the contents of the customer’s order are delivered. The Company determines the transaction price of its contracts based on the pricing established at the time a customer places an order. The transaction price does not include sales tax as the Company is a pass-through conduit for collecting and remitting sales tax. Any discounts applied to an order are allocated proportionately to the base price of the goods and services ordered. Deposits made by customers are recorded in other accrued liabilities. Deferred revenues associated with customer deposits are recognized at the time the Company transfers control of the items ordered or renders the delivery service. In the event an order is partially fulfilled as of the end of a reporting period, revenue will be recognized based on the transaction price allocated to the goods delivered and services rendered. The customer deposit balance was $ 12.3 million and $ 11.3 million as of June 30, 2023 and December 31, 2022, respectively. Revenues recognized during the six months ended June 30, 2023 that were included in the customer deposit balance as of the beginning of the period were $ 9.2 million. The Company extends financing to qualified professional customers who apply for credit. Customers who qualify for an account receive 30-day payment terms. The accounts receivable balance was $ 3.9 million and $ 3.4 million at June 30, 2023 and December 31, 2022, respectively. The Company expects that the customer will pay for the goods and services ordered within one year from the date the order is placed. Accordingly, the Company does not adjust the promised amount of consideration for the effects of the financing component. Customers may return purchased items for an exchange or refund. The Company records a reserve for estimated product returns based on the historical returns trends and the current product sales performance. The Company presents the sales returns reserve as an other current accrued liability and the estimated value of the inventory that will be returned as an other current asset in the Consolidated Balance Sheet. The components of the sales returns reserve reflected in the Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 were as follows: (in thousands) June 30, December 31, 2023 2022 Other current accrued liabilities $ 4,589 $ 4,993 Other current assets 1,565 1,687 Sales returns reserve, net $ 3,024 $ 3,306 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventories [Abstract] | |
Inventories | Note 3: Inventories Inventories are stated at the lower of cost (determined using the moving average cost method) or net realizable value. Inventories consist primarily of merchandise held for sale. Inventories were comprised of the following as of June 30, 2023 and December 31, 2022: (in thousands) June 30, December 31, 2023 2022 Finished goods $ 105,434 $ 119,517 Raw materials 1,428 1,435 Total $ 106,862 $ 120,952 The Company provides provisions for losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. These provisions are calculated based on historical shrinkage, selling price, margin and current business trends. The provision for losses related to shrinkage and other amounts was $ 0.6 million and $ 0.7 million as of June 30, 2023 and December 31, 2022, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4: Income Taxes The provision for income taxes was $ 2.0 million and $ 2.7 million for the second quarter of 2023 and 2022, respectively. The decrease in income tax expense was primarily due to a decrease in pre-tax earnings during the second quarter of 2023 as compared to the second quarter of 2022. The Company’s effective tax rate for the three months ended June 30, 2023 and 2022 was 28.1 % and 27.8 %, respectively. The provision for income taxes was $ 2.8 million and $ 3.6 million for the six months ended June 30, 2023 compared with the six months ended June 30, 2022. The decrease in income tax expense was primarily due to a decrease in pre-tax earnings. The Company’s effective tax rate for the six months ended June 30, 2023 and 2022 was 27.0 % and 25.8 %, respectively. The increase in the effective tax rate during the six months ended June 30, 2023 when compared to June 30, 2022 was largely due to a decrease in the tax benefit associated with employee equity award vestings. The Company records interest and penalties relating to uncertain tax positions in income tax expense. As of both June 30, 2023 and 2022, the Company had no t recognized any liabilities for uncertain tax positions, no r had interest and penalties related to uncertain tax positions been accrued. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5: Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding, after taking into consideration all dilutive potential shares outstanding during the period. Basic and diluted earnings per share were calculated as follows: (dollars in thousands, except per share data) For the three months ended For the six months ended June 30, June 30, 2023 2022 2023 2022 Net income $ 5,079 $ 6,914 $ 7,591 $ 10,427 Weighted average shares outstanding - basic 43,363,374 50,890,063 43,300,962 50,802,423 Effect of dilutive securities attributable to stock based awards 144,847 363,480 164,273 412,184 Weighted average shares outstanding - diluted 43,508,221 51,253,543 43,465,235 51,214,607 Income per common share: Basic $ 0.12 $ 0.14 $ 0.18 $ 0.21 Diluted $ 0.12 $ 0.13 $ 0.17 $ 0.20 Anti-dilutive securities excluded from earnings per share calculation 593,178 1,525,521 582,426 1,078,597 |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Note 6: Other Accrued Liabilities Other accrued liabilities consisted of the following: (in thousands) June 30, December 31, 2023 2022 Customer deposits $ 12,280 $ 11,315 Sales returns reserve 4,589 4,993 Accrued wages and salaries 5,687 6,040 Payroll and sales taxes 2,595 2,286 Other current liabilities 8,494 7,282 Total other accrued liabilities $ 33,645 $ 31,916 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Long-term Debt [Abstract] | |
Long-term Debt | Note 7: Long-term Debt On September 30, 2022 , Holdings and its operating subsidiary, The Tile Shop, LLC, and certain subsidiaries of each entered into a Credit Agreement with JPMorgan Chase Bank, N.A. and the lenders party thereto, including Fifth Third Bank (the “Credit Agreement”). The Credit Agreement provides the Company with a senior credit facility consisting of a $ 75.0 million revolving line of credit through September 30, 2027. Borrowings pursuant to the Credit Agreement initially bear interest at a rate per annum equal to: (i) Adjusted Term SOFR Rate (as defined in the Credit Agreement), plus a margin ranging from 1.25 % to 1.75 %; (ii) Adjusted Daily Simple SOFR (as defined in the Credit Agreement), plus a margin ranging from 1.25 % to 1.75 %; or (iii) the Alternate Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.25 % to 0.75 %. The margin is determined based on The Tile Shop, LLC’s Rent Adjusted Leverage Ratio (as defined in the Credit Agreement). Borrowings outstanding as of June 30, 2023 were SOFR-based interest rate loans. The SOFR-based interest rate was 6.67 % on June 30, 2023. The Credit Agreement is secured by virtually all of the assets of the Company, including, but not limited to, inventory, accounts receivable, equipment and general intangibles. The Credit Agreement contains customary events of default, conditions to borrowing and restrictive covenants, including restrictions on the Company’s ability to dispose of assets, engage in acquisitions or mergers, make distributions on or repurchases of capital stock, incur additional debt, incur liens or make investments. The Credit Agreement also includes financial and other covenants, including covenants to maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of no less than 1.20 to 1.00 and a Rent Adjusted Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.50 to 1.00. The Company was in compliance with the covenants as of June 30, 2023. Borrowings outstanding consisted of $ 20.0 million on the revolving line of credit as of June 30, 2023. As of June 30, 2023, there was $ 53.3 million available for borrowing on the revolving line of credit, which may be used to purchase inventory, acquire assets to maintain our stores and distribution centers, build new stores and general corporate purposes. The Company has standby letters of credit outstanding related to its workers compensation plan and property leases. Standby letters of credit totaled $ 1.7 million as of June 30, 2023 and were secured by the Company’s credit facility. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 8: Leases The Company leases its retail stores, certain distribution space, and office space. Leases generally have an initial term of ten to fifteen years , and contain renewal options. Assets acquired under operating leases are included in the Company’s right of use assets in the accompanying Consolidated Balance Sheet. The Company’s lease agreements do not contain significant residual value guarantees, restrictions or covenants. Leasehold improvements are amortized using the straight-line method over the shorter of the original lease term, the renewal term if the lease renewal is reasonably certain or the useful life of the improvement. Leases (in thousands) Classification June 30, 2023 December 31, 2022 Assets Operating lease assets Right of use asset $ 114,616 $ 118,501 Total leased assets $ 114,616 $ 118,501 Liabilities Current Operating Current portion of lease liability $ 27,411 $ 27,866 Noncurrent Operating Long-term lease liability, net 98,845 103,353 Total lease liabilities $ 126,256 $ 131,219 Three Months Ended Lease cost (in thousands) Classification June 30, 2023 June 30, 2022 Operating lease cost SG&A expenses $ 8,946 $ 8,611 Variable lease cost (1) SG&A expenses 3,822 3,557 Short term lease cost SG&A expenses 102 110 Net lease cost $ 12,870 $ 12,278 Six Months Ended Lease cost (in thousands) Classification June 30, 2023 June 30, 2022 Operating lease cost SG&A expenses $ 17,838 $ 17,282 Variable lease cost (1) SG&A expenses 7,379 6,960 Short term lease cost SG&A expenses 180 242 Net lease cost $ 25,397 $ 24,484 (1) Variable lease cost consists primarily of taxes, insurance, and common area or other maintenance costs for the Company’s leased facilities. Six Months Ended Other Information (in thousands) June 30, 2023 June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 18,994 $ 18,754 Lease right-of-use assets obtained or modified in exchange for lease obligations $ 10,041 $ 6,876 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 9: Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, the Company uses a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 – Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 – Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in non-active markets; Inputs other than quoted prices that are observable for the asset or liability; and Inputs that are derived principally from or corroborated by other observable market data. Level 3 – Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. The following table sets forth by level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis at June 30, 2023 and December 31, 2022 according to the valuation techniques the Company uses to determine their fair values. There have been no transfers of assets among the fair value hierarchies presented. Pricing Fair Value at Category June 30, 2023 December 31, 2022 Assets (in thousands) Cash and cash equivalents Level 1 $ 14,592 $ 5,948 Restricted cash Level 1 655 1,811 The following methods and assumptions were used to estimate the fair value of each class of financial instrument. There have been no changes in the valuation techniques used by the Company to value the Company’s financial instruments. Cash and cash equivalents: Consists of cash on hand and bank deposits. The value was measured using quoted market prices in active markets. The carrying amount approximates fair value. Restricted cash: Consists of cash and cash equivalents held in bank deposit accounts restricted as to withdrawal or that are under the terms of use for current operations. The value was measured using quoted market prices in active markets. The carrying amount approximates fair value. Fair value measurements also apply to certain non-financial assets and liabilities measured at fair value on a nonrecurring basis. Property, plant and equipment and right of use assets are measured at fair value when an impairment is recognized and the related assets are written down to fair value. During the three and six months ended June 30, 2023 the Company recorded $ 0.5 million and $ 0.6 million, respectively, of impairment charges in selling, general and administrative expenses to write-down property, plant and equipment and right of use assets to their estimated fair values. The Company measured the fair value of these assets based on projected cash flows, an estimated risk-adjusted rate of return and market rental rates for comparable properties. Projected cash flows are considered Level 3 inputs. Market rental rates for comparable properties are considered Level 2 inputs. No impairment charges were recorded during the three or six months ended June 30, 2022. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2023 | |
Equity Incentive Plans [Abstract] | |
Equity Incentive Plans | Note 10: Equity Incentive Plans On July 20, 2021, the Company’s stockholders approved the 2021 Omnibus Equity Compensation Plan (the “2021 Plan”). The 2021 Plan replaced the 2012 Omnibus Award Plan (the “Prior Plan”). Awards granted under the Prior Plan that were outstanding on the date of stockholder approval remained outstanding in accordance with their terms. The maximum number of shares that may be delivered with respect to awards under the 2021 Plan is 3,500,000 shares, subject to adjustment in certain circumstances. Shares tendered or withheld to pay the exercise price of a stock option or to cover tax withholding will not be added back to the number of shares available under the 2021 Plan. To the extent that any award under the 2021 Plan, or any award granted under the Prior Plan prior to stockholder approval of the 2021 Plan, is forfeited, canceled, surrendered or otherwise terminated without the issuance of shares or an award is settled only in cash, the shares subject to such awards granted but not delivered will be added to the number of shares available for awards under the 2021 Plan. Stock options: The Company measures and recognizes compensation expense for all stock based awards at fair value. The financial statements for the three and six months ended June 30, 2023 and 2022 include compensation expense for the portion of outstanding awards that vested during those periods. The Company recognizes stock based compensation expenses on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. The Company did no t record any stock based compensation related to stock options during the three months ended June 30, 2023. Total stock based compensation expense related to stock options was less than $ 0.1 million for the three months ended June 30,2022 . Total stock based compensation expense related to stock options was less than $ 0.1 million and $ 0.1 million for the six months ended June 30, 2023 and 2022, respectively. Stock based compensation expense pertaining to stock options is included in selling, general and administrative expenses in the accompanying Consolidated Statements of Income. As of June 30, 2023, the Company had fully vested outstanding stock options to purchase 466,067 shares of common stock at a weighted average exercise price of $ 10.13 per share. Restricted stock: The Company awards restricted common shares to selected employees and to non-employee directors. Recipients are not required to provide any consideration upon vesting of the award. Restricted stock awards are subject to certain restrictions on transfer, and all or part of the shares awarded may be subject to forfeiture upon the occurrence of certain events, including employment termination. Certain awards are also subject to forfeiture if the Company fails to attain certain performance targets. The restricted stock is valued at its grant date fair value and expensed over the requisite service period or the vesting term of the awards. The Company adjusts the cumulative expense recognized on awards with performance conditions based on the probability of achieving the performance condition. Total stock based compensation expense related to restricted stock was $ 0.3 million and $ 0.5 million for the three months ended June 30, 2023 and 2022, respectively. Total stock based compensation expense related to restricted stock was $ 0.7 million and $ 1.0 million for the six months ended June 30, 2023 and 2022, respectively. Stock based compensation expense pertaining to restricted stock awards is included in selling, general and administrative expenses in the accompanying Consolidated Statements of Income. As of June 30, 2023, the Company had 1,105,450 unvested outstanding restricted common shares. |
New Markets Tax Credit
New Markets Tax Credit | 6 Months Ended |
Jun. 30, 2023 | |
New Markets Tax Credit [Abstract] | |
New Markets Tax Credit | Note 11: New Markets Tax Credit 2016 New Markets Tax Credit In December 2016, the Company entered into a financing transaction with U.S. Bank Community, LLC (“U.S. Bank”) related to a $ 9.2 million expansion of the Company’s facility in Durant, Oklahoma. U.S. Bank made a capital contribution to, and Tile Shop Lending, Inc. (“Tile Shop Lending”) made a loan to, Twain Investment Fund 192 LLC (the “Investment Fund”) under a qualified New Markets Tax Credit (“NMTC”) program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. In this transaction, Tile Shop Lending loaned $ 6.7 million to the Investment Fund at an interest rate of 1.37 % per year and with a maturity date of December 31, 2046 . The Investment Fund then contributed the loan to a CDE, which, in turn, loaned the funds on similar terms to Tile Shop of Oklahoma, LLC, an indirect, wholly-owned subsidiary of Holdings. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by U.S. Bank, net of syndication fees) were used to partially fund the distribution center project. In December 2016, U.S. Bank contributed $ 3.2 million to the Investment Fund and, by virtue of such contribution, is entitled to substantially all of the tax benefits derived from the NMTC, while the Company effectively received net loan proceeds equal to U.S. Bank’s contributions to the Investment Fund. This transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase U.S. Bank’s interest. The Company believes that U.S. Bank will exercise the put option in December 2023 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require the Company to indemnify U.S. Bank for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. The Company has determined that the financing arrangement with the Investment Fund and CDEs constitutes a variable interest entity (“VIE”). The ongoing activities of the Investment Fund – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Investment Fund. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to the structure; U.S. Bank’s lack of a material interest in the underlying economics of the project; and the fact that the Company is obligated to absorb losses of the Investment Fund. The Company concluded that it is the primary beneficiary of the VIE and consolidated the Investment Fund, as a VIE, in accordance with the accounting standards for consolidation. In 2016, U.S. Bank contributed $ 3.2 million, net of syndication fees, to the Investment Fund. The Company incurred $ 1.3 million of syndication fees in connection with this transaction. The Company is recognizing the benefit of this net $ 1.9 million contribution over the seven-year compliance period as it is being earned through the on-going compliance with the conditions of the NMTC program. As of June 30, 2023, the balance of the contribution liability for this arrangement was $ 0.2 million, which was classified as other accrued liabilities on the Consolidated Balance Sheet. The Company is able to request reimbursement for certain expenditures made in connection with the expansion of the distribution center in Durant, Oklahoma from the Investment Fund. Expenditures that qualify for reimbursement include building costs, equipment purchases, and other expenditures tied to the expansion of the facility. As of June 30, 2023, the remaining balance in the Investment Fund available for reimbursement to the Company was $ 0.7 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2023 | |
Background [Abstract] | |
Nature of Business | The Company is a specialty retailer of natural stone, man-made and luxury vinyl tiles, setting and maintenance materials, and related accessories in the United States. The Company manufactures its own setting and maintenance materials, such as thinset, grout, and sealers. The Company’s primary market is retail sales to consumers, contractors, designers and home builders. As of June 30, 2023, the Company had 143 stores in 31 states and the District of Columbia, with an average size of approximately 20,000 square feet. The Company has distribution centers located in Michigan, New Jersey, Oklahoma, Virginia and Wisconsin. The Company also has a sourcing office located in China. |
Basis of Presentation | The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the rules and regulations for reporting on Form 10 - Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature, including the elimination of all intercompany transactions. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31 , 2023 . These statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accounting policies used in preparing these Consolidated Financial Statements are the same as those described in Note 1 to the Consolidated Financial Statements in such Form 10-K. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenues [Abstract] | |
Schedule of Revenues Disaggregated by Product Category | For the three months ended For the six months ended June 30, June 30, 2023 2022 2023 2022 Man-made tiles (1) 54 % 50 % 52 % 50 % Natural stone tiles 22 26 23 25 Setting and maintenance materials 14 15 15 16 Accessories 8 7 8 7 Delivery service 2 2 2 2 Total 100 % 100 % 100 % 100 % (1) Man-made tile revenues include sales of luxury vinyl tile products. |
Schedule of Components of Returns Reserve | (in thousands) June 30, December 31, 2023 2022 Other current accrued liabilities $ 4,589 $ 4,993 Other current assets 1,565 1,687 Sales returns reserve, net $ 3,024 $ 3,306 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | (in thousands) June 30, December 31, 2023 2022 Finished goods $ 105,434 $ 119,517 Raw materials 1,428 1,435 Total $ 106,862 $ 120,952 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | (dollars in thousands, except per share data) For the three months ended For the six months ended June 30, June 30, 2023 2022 2023 2022 Net income $ 5,079 $ 6,914 $ 7,591 $ 10,427 Weighted average shares outstanding - basic 43,363,374 50,890,063 43,300,962 50,802,423 Effect of dilutive securities attributable to stock based awards 144,847 363,480 164,273 412,184 Weighted average shares outstanding - diluted 43,508,221 51,253,543 43,465,235 51,214,607 Income per common share: Basic $ 0.12 $ 0.14 $ 0.18 $ 0.21 Diluted $ 0.12 $ 0.13 $ 0.17 $ 0.20 Anti-dilutive securities excluded from earnings per share calculation 593,178 1,525,521 582,426 1,078,597 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | (in thousands) June 30, December 31, 2023 2022 Customer deposits $ 12,280 $ 11,315 Sales returns reserve 4,589 4,993 Accrued wages and salaries 5,687 6,040 Payroll and sales taxes 2,595 2,286 Other current liabilities 8,494 7,282 Total other accrued liabilities $ 33,645 $ 31,916 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | Leases (in thousands) Classification June 30, 2023 December 31, 2022 Assets Operating lease assets Right of use asset $ 114,616 $ 118,501 Total leased assets $ 114,616 $ 118,501 Liabilities Current Operating Current portion of lease liability $ 27,411 $ 27,866 Noncurrent Operating Long-term lease liability, net 98,845 103,353 Total lease liabilities $ 126,256 $ 131,219 |
Summary of Lease Cost | Three Months Ended Lease cost (in thousands) Classification June 30, 2023 June 30, 2022 Operating lease cost SG&A expenses $ 8,946 $ 8,611 Variable lease cost (1) SG&A expenses 3,822 3,557 Short term lease cost SG&A expenses 102 110 Net lease cost $ 12,870 $ 12,278 Six Months Ended Lease cost (in thousands) Classification June 30, 2023 June 30, 2022 Operating lease cost SG&A expenses $ 17,838 $ 17,282 Variable lease cost (1) SG&A expenses 7,379 6,960 Short term lease cost SG&A expenses 180 242 Net lease cost $ 25,397 $ 24,484 (1) Variable lease cost consists primarily of taxes, insurance, and common area or other maintenance costs for the Company’s leased facilities. |
Summary of Other Lease Information | Six Months Ended Other Information (in thousands) June 30, 2023 June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 18,994 $ 18,754 Lease right-of-use assets obtained or modified in exchange for lease obligations $ 10,041 $ 6,876 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | |
Summary of Fair Value of Financial Assets Measured on a Recurring Basis | Pricing Fair Value at Category June 30, 2023 December 31, 2022 Assets (in thousands) Cash and cash equivalents Level 1 $ 14,592 $ 5,948 Restricted cash Level 1 655 1,811 |
Background (Narrative) (Details
Background (Narrative) (Details) | Jun. 30, 2023 ft² state store |
Background [Abstract] | |
Number of stores | store | 143 |
Number of states in which entity operates | state | 31 |
Area of stores | ft² | 20,000 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Revenues [Abstract] | ||
Customer deposit balance | $ 12,280 | $ 11,315 |
Customer deposit balance, revenues recognized | 9,200 | |
Accounts receivable | $ 3,871 | $ 3,411 |
Revenues (Schedule of Revenues
Revenues (Schedule of Revenues Disaggregated by Product Category) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 100% | 100% | 100% | 100% |
Man-Made Tiles [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 54% | 50% | 52% | 50% |
Natural Stone Tiles [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22% | 26% | 23% | 25% |
Setting And Maintenance Materials [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14% | 15% | 15% | 16% |
Accessories [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8% | 7% | 8% | 7% |
Delivery Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2% | 2% | 2% | 2% |
Revenues (Schedule of Component
Revenues (Schedule of Components of Returns Reserve) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenues [Abstract] | ||
Other current accrued liabilities | $ 4,589 | $ 4,993 |
Other current assets | 1,565 | 1,687 |
Sales returns reserve, net | $ 3,024 | $ 3,306 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventories [Abstract] | ||
Inventory, provision for shrinkage and other | $ 0.6 | $ 0.7 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventories [Abstract] | ||
Finished goods | $ 105,434 | $ 119,517 |
Raw materials | 1,428 | 1,435 |
Total | $ 106,862 | $ 120,952 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes [Abstract] | ||||
Provision for income taxes | $ 1,987,000 | $ 2,663,000 | $ 2,802,000 | $ 3,620,000 |
Effective income tax rate | 28.10% | 27.80% | 27% | 25.80% |
Liability for uncertain tax positions | $ 0 | $ 0 | $ 0 | $ 0 |
Income tax interest and penalties related to uncertain tax positions | $ 0 | $ 0 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 5,079 | $ 6,914 | $ 7,591 | $ 10,427 |
Weighted average shares outstanding - basic | 43,363,374 | 50,890,063 | 43,300,962 | 50,802,423 |
Effect of dilutive securities attributable to stock based awards | 144,847 | 363,480 | 164,273 | 412,184 |
Weighted average shares outstanding - diluted | 43,508,221 | 51,253,543 | 43,465,235 | 51,214,607 |
Basic income per common share | $ 0.12 | $ 0.14 | $ 0.18 | $ 0.21 |
Diluted income per common share | $ 0.12 | $ 0.13 | $ 0.17 | $ 0.20 |
Anti-dilutive securities excluded from earnings per share calculation | 593,178 | 1,525,521 | 582,426 | 1,078,597 |
Other Accrued Liabilities (Sche
Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Accrued Liabilities [Abstract] | ||
Customer deposits | $ 12,280 | $ 11,315 |
Sales returns reserve | 4,589 | 4,993 |
Accrued wages and salaries | 5,687 | 6,040 |
Payroll and sales taxes | 2,595 | 2,286 |
Other current liabilities | 8,494 | 7,282 |
Total other accrued liabilities | $ 33,645 | $ 31,916 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Standby Letters of Credit [Member] | |
Debt Instrument [Line Items] | |
Standby letters of credit | $ 1.7 |
Credit Agreement [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, initiation date | Sep. 30, 2022 |
Borrowings outstanding | $ 75 |
Credit facility, amount outstanding | 20 |
Credit facility, available borrowing capacity | $ 53.3 |
Credit Agreement [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Fixed charge coverage ratio | 120% |
Credit Agreement [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Rent adjusted leverage ratio | 350% |
Credit Agreement [Member] | SOFR Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility effective interest rate | 6.67% |
Credit Agreement [Member] | Term SOFR Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, spread on variable interest rate | 1.25% |
Credit Agreement [Member] | Term SOFR Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, spread on variable interest rate | 1.75% |
Credit Agreement [Member] | Daily Simple SOFR Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, spread on variable interest rate | 1.25% |
Credit Agreement [Member] | Daily Simple SOFR Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, spread on variable interest rate | 1.75% |
Credit Agreement [Member] | Alternate Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, spread on variable interest rate | 0.25% |
Credit Agreement [Member] | Alternate Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, spread on variable interest rate | 0.75% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Jun. 30, 2023 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 10 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 15 years |
Leases (Schedule of Lease Asset
Leases (Schedule of Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets | $ 114,616 | $ 118,501 |
Total leased assets | 114,616 | 118,501 |
Current portion of lease liability | 27,411 | 27,866 |
Long-term lease liability, net | 98,845 | 103,353 |
Total lease liabilities | $ 126,256 | $ 131,219 |
Leases (Summary of Lease Cost)
Leases (Summary of Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 8,946 | $ 8,611 | $ 17,838 | $ 17,282 |
Variable lease cost | 3,822 | 3,557 | 7,379 | 6,960 |
Short term lease cost | 102 | 110 | 180 | 242 |
Net lease cost | $ 12,870 | $ 12,278 | $ 25,397 | $ 24,484 |
Leases (Summary of Other Lease
Leases (Summary of Other Lease Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 18,994 | $ 18,754 |
Lease right-of-use assets obtained or modified in exchange for lease obligations | $ 10,041 | $ 6,876 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | ||
Asset impairment charges | $ 500 | $ 618 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Summary of Fair Value of Financial Assets Measured on a Recurring Basis) (Details) - Level 1 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 14,592 | $ 5,948 |
Restricted cash | $ 655 | $ 1,811 |
Equity Incentive Plans (Narrati
Equity Incentive Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
2021 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 3,500,000 | 3,500,000 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | |||
Stock options outstanding | 466,067 | 466,067 | ||
Stock options outstanding, weighted average exercise price | $ 10.13 | $ 10.13 | ||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.1 | $ 0.1 | $ 0.1 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.3 | $ 0.5 | $ 0.7 | $ 1 |
Restricted stock outstanding | 1,105,450 | 1,105,450 |
New Markets Tax Credit (Narrati
New Markets Tax Credit (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2023 | Dec. 31, 2016 | |
New Market Tax Credit Disclosure [Line Items] | |||
Investment fund cash | $ 0.7 | ||
Twain Investment Fund 192 [Member] | |||
New Market Tax Credit Disclosure [Line Items] | |||
Net proceeds from contribution | $ 1.9 | ||
Contribution liability compliance period | 7 years | ||
Contribution liability | $ 0.2 | ||
Twain Investment Fund 192 [Member] | Tile Shop Holdings [Member] | |||
New Market Tax Credit Disclosure [Line Items] | |||
Syndicate costs | 1.3 | $ 1.3 | |
Twain Investment Fund 192 [Member] | Tile Shop Lending [Member] | |||
New Market Tax Credit Disclosure [Line Items] | |||
Loan amount | $ 6.7 | ||
Loan interest rate | 1.37% | ||
Loan maturity date | Dec. 31, 2046 | ||
U.S. Bank Community [Member] | Twain Investment Fund 192 [Member] | |||
New Market Tax Credit Disclosure [Line Items] | |||
Contribution to affiliate | $ 3.2 | 3.2 | |
U.S. Bank Community [Member] | Oklahoma [Member] | |||
New Market Tax Credit Disclosure [Line Items] | |||
Financing agreement project cost | $ 9.2 | $ 9.2 |