Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth
Trading” or the “Company”) (NASDAQ:DLTH), a lifestyle brand of
men’s and women’s casual wear, workwear and accessories, today
announced its financial results for the fiscal fourth quarter and
fiscal year ended January 29, 2017 and its financial guidance for
fiscal year 2017.
Highlights for the Fourth Quarter Ended
January 29, 2017
- Net sales increased 24.4% to $174.7 million compared to $140.4
million in the prior-year fourth quarter
- Gross margin decreased 70 basis points (bps) to 55.4% compared
to 56.1% in the prior-year fourth quarter
- Net income was $14.0 million, or $0.43 per diluted share,
compared to $17.5 million, or $0.58 per diluted share in the
prior-year fourth quarter. Adjusted for income taxes, pro forma net
income for the prior-year fourth quarter was $11.3 million, or
$0.37 per diluted share
- Adjusted EBITDA1 increased 22.7% to $24.7 million compared to
$20.1 million in the prior-year fourth quarter
- During the fourth quarter, the Company opened two new retail
stores in Manassas, Virginia and in Independence, Missouri
- 28th consecutive quarter of increased net sales
year-over-year
1See Reconciliation of net income to EBITDA and
EBITDA to Adjusted EBITDA in the accompanying financial tables.
Highlights for the Fiscal Year Ended
January 29, 2017
- Net sales increased 23.7% to $376.1 million compared to $304.2
million in the prior year
- Gross margin decreased 10 bps to 56.9% compared to 57.0% a year
ago
- Net income was $21.3 million, or $0.66 per diluted share,
compared to $27.4 million, or $1.06 per diluted share in the prior
year. Adjusted for income taxes, pro forma net income for the
prior-year was $17.3 million, or $0.66 per diluted share
- Adjusted EBITDA1 increased 21.1% to $41.2 million compared to
$34.0 million in the prior year
- During fiscal 2016, the Company opened a total of seven retail
stores
1See Reconciliation of net income to EBITDA and
EBITDA to Adjusted EBITDA in the accompanying financial tables.
Management Commentary
“I am pleased to report that net sales increased
24% with adjusted EBITDA up 21% and GAAP diluted earnings per share
at $0.66 for the full year. While we experienced unseasonably warm
weather early in the fourth quarter, we had a very positive
customer response when the weather turned in late December and the
holiday season arrived. I am extremely proud of how well our team
delivered an outstanding Duluth omnichannel experience to our
customers,” said Stephanie Pugliese, Chief Executive Officer of
Duluth Trading.
“We made great progress executing our strategic
objectives for the year. We have increased our aided brand
awareness year-over-year, demonstrating the continued effectiveness
of our marketing campaigns. Retail sales grew 76% year-over-year,
and they now account for 18% of total net sales. We are also
capturing a greater share of the household closet with a broader
assortment of men’s products and with women’s apparel continuing to
outpace our overall growth.”
“On the retail front, we continue to improve our
store opening process and to accelerate the pace of new store
openings. We recently opened our 17th store in Noblesville, Indiana
and later this week, we will celebrate the grand opening of our
18th store in Burlington, Massachusetts, and including these two
stores, we now expect a total of 10 to 12 new stores in fiscal
2017. With the progress we have made so far, including investments
in our order management system and e-commerce platform, we believe
we are well positioned for continued growth and profitability in
fiscal 2017.”
Operating Results for the Fourth Quarter
Ended January 29, 2017
Net sales increased 24.4% to $174.7 million,
compared to $140.4 million in the same period a year ago. The net
sales increase was driven by a 14.5% growth in direct net sales and
a 105.6% growth in retail net sales, with growth achieved in all
product categories. The increase in retail net sales was primarily
attributable to the opening of seven new retail stores during
fiscal 2016.
Gross profit increased 22.8% to $96.8 million, or
55.4% of net sales, compared to $78.8 million, or 56.1% of net
sales, in the corresponding prior-year period. The 70 basis point
decrease in gross margin was primarily due to a highly promotional
retail environment during the fourth quarter, which was partially
offset by product mix shift to higher margin products.
Selling, general and administrative expenses
increased 23.6% to $73.9 million, compared to $59.8 million in the
same period a year ago. As a percentage of net sales, selling,
general and administrative expenses decreased 30 basis points to
42.3%, compared to 42.6% in the corresponding prior-year period. As
a percentage of net sales, advertising and marketing costs remained
flat at 20.1% in the current period, compared to the corresponding
prior-year period, primarily due to the Company’s planned decrease
in catalog spend as a percentage of net sales, coupled with a
decrease in on-line advertising due to higher net sales, which was
offset by an increase in television advertising, particularly in
the women’s advertising campaign. As a percentage of net sales,
selling expenses decreased 30 basis points to 13.7%, compared to
14.0% in the corresponding prior-year period, primarily due to a
decrease in distribution labor and shipping expenses. The
reduced distribution labor was the result of our increased use of
our expanded Belleville distribution center and a corresponding
reduction in the use of our higher costs third-party logistic
providers. The decrease in shipping expenses was due to
leverage from an increase in retail net sales, which was partially
offset by an increase in customer service due to the growth in
retail. As a percentage of net sales, general and administrative
expenses remained flat at 8.5% in the current period, compared to
the corresponding prior-year period, primarily due to a decrease in
personnel expenses due to operating leverage as a result of higher
net sales, offset by an increase in store rent expense, primarily
due to store pre-opening costs and depreciation expense due to an
increase in retail stores.
Net income was $14.0 million, or $0.43 per diluted
share, compared to $17.5 million, or $0.58 per diluted share, in
the prior-year period. Adjusted for income taxes, pro forma net
income for the prior-year period was $11.3 million, or $0.37 per
diluted share.
The pro forma net income gives effect to the
conversion of the Company to a “C” corporation, which was effective
November 25, 2015. Prior to such conversion, the Company was an “S”
corporation and generally not subject to income taxes. The pro
forma net income, therefore, includes an adjustment for income tax
expense on the income attributable to controlling interest as if
the Company had been a “C” corporation as of February 4, 2013 at an
assumed combined federal, state and local effective tax rate of
40%, which approximates the calculated statutory rate for each
period.
Adjusted EBITDA increased 22.7% to $24.7 million,
or 14.1% of net sales, compared to $20.1 million, or 14.3% of net
sales, in the prior-year period. Duluth Trading defines
Adjusted EBITDA as consolidated net income (loss) before
depreciation and amortization, interest expense and provision for
income taxes adjusted for the impact of certain items, including
non-cash and other items.
Balance Sheet and Liquidity
The Company ended the quarter with a cash balance
of approximately $24.0 million, with net working capital of $66.1
million, and no borrowings on its $40.0 million revolving line of
credit.
Fiscal 2017 Outlook
- Net sales in the range of $455.0 million to $465.0 million
- Adjusted EBITDA1 in the range of $47.0 million to $49.5
million
- EPS in the range of $0.66 to $0.71 per diluted share
- Capital expenditures of $31.0 to $35.0 million2
- 10 to 12 new store openings, adding 120,000 to 144,000 of
additional selling square footage
1See Reconciliation of forecasted net income to
forecasted EBITDA and forecasted EBITDA to forecasted Adjusted
EBITDA in the accompanying financial tables.
2Fiscal 2017 capital expenditures primarily include
the Company’s plan to open 10 to 12 retail stores and information
technology investments.
The table below recaps the Company’s signed new
store leases and the opening timeframe.
Location |
|
Timing |
Noblesville,
Indiana |
|
Opened March 2,
2017 |
Burlington,
Massachusetts |
|
Expected March 23,
2017 |
Macomb, Michigan |
|
First Quarter Fiscal
2017 |
Warwick, Rhode
Island |
|
First Quarter Fiscal
2017 |
West Chester, Ohio |
|
Second Quarter Fiscal
2017 |
Pittsburgh,
Pennsylvania |
|
Second Quarter Fiscal
2017 |
Red Wing,
Minnesota |
|
Second Quarter Fiscal
2017 |
St. Charles,
Missouri |
|
Third Quarter Fiscal
2017 |
Avon, Ohio |
|
Third Quarter or Fourth
Quarter Fiscal 2017 |
Thornton, Colorado |
|
Third Quarter or Fourth
Quarter Fiscal 2017 |
Wixom, Michigan |
|
Fourth Quarter Fiscal
2017 or First Quarter Fiscal 2018 |
Conference Call Information
A conference call and audio webcast with analysts
and investors will be held on Tuesday, March 21, 2017 at 4:30 pm
Eastern Time, to discuss the results and answer questions.
- Live conference call: 844-875-6915 (domestic) or 412-317-6711
(international)
- Conference call replay available through April 4, 2017:
877-344-7529 (domestic) or 412-317-0088 (international)
- Replay access code: 10100934
- Live and archived webcast:
ir.duluthtrading.com
The Company is enabling investors to pre-register
for the earnings conference call so that they can expedite their
entry into the call and avoid the need to wait for a live operator.
In order to pre-register for the call, investors can visit
http://dpregister.com/10100934 and enter in their contact
information. Investors will then be issued a personalized phone
number and pin to dial into the live conference call. Individuals
can pre-register any time prior to the start of the conference call
on March 21st.
About Duluth Trading
Duluth Trading is a rapidly growing lifestyle brand
for the Modern, Self-Reliant American. Based in Belleville,
Wisconsin, we offer high quality, solution-based casual wear,
workwear and accessories for men and women who lead a hands-on
lifestyle and who value a job well-done. We provide our customers
an engaging and entertaining experience. Our marketing
incorporates humor and storytelling that conveys the uniqueness of
our products in a distinctive, fun way, and our products are sold
exclusively through our content-rich website, catalogs, and “store
like no other” retail locations. We are committed to outstanding
customer service backed by our “No Bull Guarantee” - if it’s not
right, we’ll fix it. Visit our website at www.duluthtrading.com
Non-GAAP Measurements
Management believes that non-GAAP financial
measures may be useful in certain instances to provide additional
meaningful comparisons between current results and results in prior
operating periods. Within this release, including the tables
attached hereto, reference is made to adjusted earnings before
interest, taxes, depreciation and amortization (EBITDA). See
attached Table “Reconciliation of Net Income to EBITDA and EBITDA
to Adjusted EBITDA,” for a reconciliation of net income to EBITDA
and EBITDA to Adjusted EBITDA for the three months and fiscal year
ended January 29, 2017, versus the three months and fiscal year
ended January 31, 2016. See also attached Table
“Reconciliation of Forecasted Net Income to Forecasted EBITDA and
Forecasted EBITDA to Forecasted Adjusted EBITDA,” for a
reconciliation of forecasted net income to forecasted EBITDA and
forecasted EBITDA to forecasted adjusted EBITDA for the fiscal year
ending January 28, 2018. Adjusted EBITDA is a metric used by
management and frequently used by the financial community, which
provides insight into an organization’s operating trends and
facilitates comparisons between peer companies, since interest,
taxes, depreciation and amortization can differ greatly between
organizations as a result of differing capital structures and tax
strategies. Adjusted EBITDA excludes certain items that are unusual
in nature or not comparable from period to period. The
Company provides this information to investors to assist in
comparisons of past, present and future operating results and to
assist in highlighting the results of on-going operations.
While the Company’s management believes that non-GAAP measurements
are useful supplemental information, such adjusted results are not
intended to replace the Company’s GAAP financial results and should
be read in conjunction with those GAAP results.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical facts included in this press release, including
statements concerning Duluth Trading's plans, objectives, goals,
beliefs, business strategies, future events, business conditions,
its results of operations, financial position and its business
outlook, business trends and certain other information herein are
forward-looking statements, including statements regarding Duluth
Trading’s ability to execute on its growth strategies, statements
under the heading “Fiscal 2017 Outlook” and the forecasted results
of operations in the Table “Reconciliation of Forecasted Net Income
to Forecasted EBITDA to Forecasted Adjusted EBITDA.” You can
identify forward-looking statements by the use of words such as
“may,” ”might,” “will,” “should,” “expect,” “plan,” “anticipate,”
“could,” “believe,” “estimate,” “project,” “target,” “predict,”
“intend,” “future,” “budget,” “goals,” “potential,” “continue,”
“design,” “objective,” “forecasted,” “would” and other similar
expressions. The forward-looking statements are not historical
facts, and are based upon Duluth Trading's current expectations,
beliefs, estimates, and projections, and various assumptions, many
of which, by their nature, are inherently uncertain and beyond
Duluth Trading's control. Duluth Trading's expectations, beliefs
and projections are expressed in good faith, and Duluth Trading
believes there is a reasonable basis for them. However, there can
be no assurance that management's expectations, beliefs, estimates,
and projections will be achieved and actual results may vary
materially from what is expressed in or indicated by the
forward-looking statements. Forward-looking statements are subject
to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in the
forward-looking statements, including, among others, the risks,
uncertainties, and factors set forth under “Risk Factors” in the
Company’s Annual Report on Form 10-K filed with the SEC on April 8,
2016, and other factors as may be periodically described in Duluth
Trading’s subsequent filings with the SEC. Forward-looking
statements speak only as of the date the statements are made.
Duluth Trading assumes no obligation to update forward-looking
statements to reflect actual results, subsequent events or
circumstances or other changes affecting forward-looking
information except to the extent required by applicable securities
laws.
(Tables Follow)
DULUTH HOLDINGS INC.Condensed
Consolidated Balance
Sheets(Unaudited) (Amounts
in thousands) |
|
|
|
|
|
|
|
|
|
January 29, 2017 |
|
January 31, 2016 |
ASSETS |
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
Cash |
|
$ |
24,042 |
|
$ |
37,873 |
|
Accounts
receivable |
|
|
45 |
|
|
20 |
|
Other
receivables |
|
|
349 |
|
|
76 |
|
Inventory, net |
|
|
70,368 |
|
|
55,303 |
|
Prepaid
expenses |
|
|
4,860 |
|
|
3,683 |
|
Deferred
catalog costs |
|
|
1,582 |
|
|
1,435 |
|
Total
current assets |
|
|
101,246 |
|
|
98,390 |
|
Property
and equipment, net |
|
|
52,432 |
|
|
21,529 |
|
Restricted cash |
|
|
1,435 |
|
|
— |
|
Goodwill |
|
|
402 |
|
|
402 |
|
Other
assets, net |
|
|
452 |
|
|
299 |
|
Total
assets |
|
$ |
155,967 |
|
$ |
120,620 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Trade
accounts payable |
|
$ |
9,330 |
|
$ |
10,611 |
|
Accrued
expenses and other current liabilities |
|
|
19,822 |
|
|
12,049 |
|
Income
taxes payable |
|
|
5,225 |
|
|
1,308 |
|
Current
maturities of long-term debt |
|
|
742 |
|
|
722 |
|
Total
current liabilities |
|
|
35,119 |
|
|
24,690 |
|
Finance
lease obligations under build-to-suit leases |
|
|
3,349 |
|
|
— |
|
Long-term
debt, less current maturities |
|
|
35 |
|
|
4,301 |
|
Deferred
rent obligations, less current maturities |
|
|
2,109 |
|
|
1,112 |
|
Deferred
tax liabilities |
|
|
1,567 |
|
|
31 |
|
Total
liabilities |
|
|
42,179 |
|
|
30,134 |
|
Commitments and contingencies |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
Capital
stock |
|
|
86,446 |
|
|
85,389 |
|
Retained
earnings |
|
|
24,733 |
|
|
3,443 |
|
Accumulated other comprehensive loss |
|
|
— |
|
|
(27 |
) |
Total
shareholders' equity of Duluth Holdings Inc. |
|
|
111,179 |
|
|
88,805 |
|
Noncontrolling interest |
|
|
2,609 |
|
|
1,681 |
|
Total
shareholders' equity |
|
|
113,788 |
|
|
90,486 |
|
Total
liabilities and shareholders' equity |
|
$ |
155,967 |
|
$ |
120,620 |
|
DULUTH HOLDING
INC.Consolidated Statements of
Operations(Unaudited)(Amounts in
thousands, except per share figures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|
|
January 29, 2017 |
|
January 31, 2016 |
|
January 29, 2017 |
|
January 31, 2016 |
Net sales |
|
$ |
174,653 |
|
$ |
140,377 |
|
$ |
376,116 |
|
$ |
304,157 |
Cost of goods sold
(excluding depreciation and amortization) |
|
|
77,868 |
|
|
61,585 |
|
|
161,970 |
|
|
130,636 |
Gross profit |
|
|
96,785 |
|
|
78,792 |
|
|
214,146 |
|
|
173,521 |
Selling, general and
administrative expenses |
|
|
73,930 |
|
|
59,797 |
|
|
179,145 |
|
|
144,371 |
Operating income |
|
|
22,855 |
|
|
18,995 |
|
|
35,001 |
|
|
29,150 |
Interest expense |
|
|
86 |
|
|
80 |
|
|
194 |
|
|
306 |
Other income, net |
|
|
84 |
|
|
62 |
|
|
247 |
|
|
181 |
Income before income
taxes |
|
|
22,853 |
|
|
18,977 |
|
|
35,054 |
|
|
29,025 |
Income tax expense |
|
|
8,834 |
|
|
1,339 |
|
|
13,525 |
|
|
1,339 |
Net income |
|
|
14,019 |
|
|
17,638 |
|
|
21,529 |
|
|
27,686 |
Less: Net income
attributable to noncontrolling interest |
|
|
26 |
|
|
98 |
|
|
214 |
|
|
247 |
Net income attributable
to controlling interest |
|
$ |
13,993 |
|
$ |
17,540 |
|
$ |
21,315 |
|
$ |
27,439 |
Basic earnings
per share (Class A and Class B): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock outstanding |
|
|
31,549 |
|
|
29,557 |
|
|
31,527 |
|
|
25,250 |
Net income per share
attributable to controlling interest |
|
$ |
0.44 |
|
$ |
0.59 |
|
$ |
0.68 |
|
$ |
1.09 |
Diluted
earnings per share (Class A and Class B): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
and equivalents outstanding |
|
|
32,274 |
|
|
30,240 |
|
|
32,249 |
|
|
25,978 |
Net income per share
attributable to controlling interest |
|
$ |
0.43 |
|
$ |
0.58 |
|
$ |
0.66 |
|
$ |
1.06 |
Pro forma net
income information (Note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
Income attributable to
controlling interest before provision for income taxes |
|
|
|
|
$ |
18,879 |
|
|
|
|
$ |
28,778 |
Pro forma provision for
income taxes |
|
|
|
|
|
7,552 |
|
|
|
|
|
11,511 |
Pro forma net income
attributable to controlling interest |
|
|
|
|
$ |
11,327 |
|
|
|
|
$ |
17,267 |
Pro forma basic net
income per share attributable to controlling interest (Class A and
Class B) |
|
|
|
|
$ |
0.38 |
|
|
|
|
$ |
0.68 |
Pro forma diluted net
income per share attributable to controlling interest (Class A and
Class B) |
|
|
|
|
$ |
0.37 |
|
|
|
|
$ |
0.66 |
Note 1: The unaudited pro forma net income
information gives effect to the conversion of the Company to a “C”
corporation on November 25, 2015. Prior to such conversion, the
Company was an “S” corporation and generally not subject to income
taxes. The pro forma net income, therefore, includes an adjustment
for income tax expense on the income attributable to controlling
interest as if the Company had been a “C” corporation as of
February 4, 2013 at an assumed combined federal, state and local
effective tax rate of 40%, which approximates the calculated
statutory rate for each period. No pro forma income tax expense was
calculated on the income attributable to noncontrolling interest
because this entity did not convert to a “C” corporation. The
unaudited pro forma basic and diluted net income per share Class A
and Class B common stock is computed using the unaudited pro forma
net income, as discussed above.
DULUTH HOLDINGS
INC.Consolidated Statements of Cash
Flows(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
January 29, 2017 |
|
January 31, 2016 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
21,529 |
|
|
$ |
27,686 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation and
amortization |
|
|
4,698 |
|
|
|
2,837 |
|
Amortization of
stock-based compensation |
|
|
1,224 |
|
|
|
720 |
|
Deferred income
taxes |
|
|
1,536 |
|
|
|
31 |
|
Loss on disposal of
property and equipment |
|
|
3 |
|
|
|
5 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(25 |
) |
|
|
(3 |
) |
Other
receivables |
|
|
(273 |
) |
|
|
(2 |
) |
Inventory |
|
|
(14,446 |
) |
|
|
(13,623 |
) |
Prepaid
expense |
|
|
(1,177 |
) |
|
|
(967 |
) |
Deferred
catalog costs |
|
|
1,472 |
|
|
|
1,502 |
|
Trade
accounts payable |
|
|
(2,962 |
) |
|
|
(5,544 |
) |
Income
taxes payable |
|
|
3,917 |
|
|
|
1,308 |
|
Accrued
expenses and deferred rent obligations |
|
|
4,757 |
|
|
|
264 |
|
Net cash provided by
operating activities |
|
|
20,253 |
|
|
|
14,214 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of property
and equipment |
|
|
(28,672 |
) |
|
|
(7,306 |
) |
Change in restricted
cash |
|
|
(1,435 |
) |
|
|
— |
|
Purchases of other
assets |
|
|
(234 |
) |
|
|
(56 |
) |
Net cash used in
investing activities |
|
|
(30,341 |
) |
|
|
(7,362 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Net proceeds from
initial public offering |
|
|
— |
|
|
|
83,923 |
|
Proceeds from line of
credit |
|
|
25,385 |
|
|
|
102,862 |
|
Payments on line of
credit |
|
|
(25,385 |
) |
|
|
(103,462 |
) |
Proceeds from long term
debt |
|
|
— |
|
|
|
47,100 |
|
Payments on long term
debt |
|
|
(4,226 |
) |
|
|
(46,899 |
) |
Payments on capital
lease obligations |
|
|
(20 |
) |
|
|
(261 |
) |
Payments on finance
lease obligations under build-to-suit leases |
|
|
(19 |
) |
|
|
— |
|
Distributions to
shareholders |
|
|
(192 |
) |
|
|
(60,077 |
) |
Distributions to
holders of noncontrolling interest in variable interest
entities |
|
|
(30 |
) |
|
|
(390 |
) |
Capital contributions
to variable interest entities |
|
|
744 |
|
|
|
344 |
|
Net cash provided by
(used in) financing activities |
|
|
(3,743 |
) |
|
|
23,140 |
|
Increase (Decrease) in
cash |
|
|
(13,831 |
) |
|
|
29,992 |
|
Cash at beginning of
period |
|
|
37,873 |
|
|
|
7,881 |
|
Cash at end of
period |
|
$ |
24,042 |
|
|
$ |
37,873 |
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
|
Interest paid |
|
$ |
185 |
|
|
$ |
301 |
|
Income taxes paid |
|
$ |
6,698 |
|
|
$ |
— |
|
Property and equipment
acquired under build-to-suit leases |
|
$ |
3,369 |
|
|
$ |
— |
|
Unpaid liability to
acquire property and equipment |
|
$ |
3,485 |
|
|
$ |
112 |
|
DULUTH HOLDINGS
INC.Reconciliation of Net Income to EBITDA and
EBITDA to Adjusted
EBITDA(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|
|
January 29, 2017 |
|
January 31, 2016 |
|
January 29, 2017 |
|
January 31, 2016 |
Net income |
|
$ |
14,019 |
|
$ |
17,638 |
|
$ |
21,529 |
|
$ |
27,686 |
Depreciation and amortization |
|
|
1,483 |
|
|
839 |
|
|
4,698 |
|
|
2,837 |
Interest
expense |
|
|
86 |
|
|
80 |
|
|
194 |
|
|
306 |
Income
tax expense |
|
|
8,834 |
|
|
1,339 |
|
|
13,525 |
|
|
1,339 |
EBITDA |
|
$ |
24,422 |
|
$ |
19,896 |
|
$ |
39,946 |
|
$ |
32,168 |
Non-cash
stock based compensation |
|
|
255 |
|
|
221 |
|
|
1,224 |
|
|
720 |
Payment
of grantees' tax liabilities associated with grant of restricted
stock awards |
|
|
— |
|
|
— |
|
|
— |
|
|
1,115 |
Adjusted EBITDA |
|
$ |
24,677 |
|
$ |
20,117 |
|
$ |
41,170 |
|
$ |
34,003 |
DULUTH HOLDINGS INC.Segment
Information(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|
|
January 29, 2017 |
|
January 31, 2016 |
|
January 29, 2017 |
|
January 31, 2016 |
Net
sales |
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
143,237 |
|
$ |
125,100 |
|
$ |
309,674 |
|
$ |
266,341 |
Retail |
|
|
31,416 |
|
|
15,277 |
|
|
66,442 |
|
|
37,816 |
Total net
sales |
|
$ |
174,653 |
|
$ |
140,377 |
|
$ |
376,116 |
|
$ |
304,157 |
Operating
income |
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
15,764 |
|
$ |
14,761 |
|
$ |
24,458 |
|
$ |
21,031 |
Retail |
|
|
7,091 |
|
|
4,234 |
|
|
10,543 |
|
|
8,119 |
Total
operating income |
|
|
22,855 |
|
|
18,995 |
|
|
35,001 |
|
|
29,150 |
Interest expense |
|
|
86 |
|
|
80 |
|
|
194 |
|
|
306 |
Other income, net |
|
|
84 |
|
|
62 |
|
|
247 |
|
|
181 |
Income before
income taxes |
|
$ |
22,853 |
|
$ |
18,977 |
|
$ |
35,054 |
|
$ |
29,025 |
DULUTH HOLDINGS
INC.Reconciliation of Forecasted Net Income to
Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted
EBITDAFor the Fiscal Year Ending January 28,
2018(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Low |
|
Mid-point |
|
High |
Forecasted |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
21,500 |
|
$ |
22,400 |
|
$ |
23,000 |
Depreciation and amortization |
|
|
8,800 |
|
|
8,800 |
|
|
8,800 |
Interest
expense |
|
|
1,500 |
|
|
1,500 |
|
|
1,500 |
Income
tax expense |
|
|
13,600 |
|
|
14,200 |
|
|
14,600 |
EBITDA |
|
$ |
45,400 |
|
$ |
46,900 |
|
$ |
47,900 |
Non-cash
stock based compensation |
|
|
1,600 |
|
|
1,600 |
|
|
1,600 |
Adjusted EBITDA
|
|
$ |
47,000 |
|
$ |
48,500 |
|
$ |
49,500 |
Investor Contacts:
Donni Case (310) 622-8224
Johan Yokay (310) 622-8241
Financial Profiles, Inc.
Duluth@finprofiles.com
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