Form 8-K DULUTH HOLDINGS INC. For: Dec 07

December 7, 2017 9:06 AM





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 8K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934





 

 

 

 

 

 

Date of report (Date of earliest event reported): December 7, 2017

 

DULUTH HOLDINGS INC.

(Exact name of registrant as specified in its charter)

 

Wisconsin

001-37641

39-1564801

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

 

 

170 Countryside Drive

Belleville, Wisconsin 53508

(Address of principal executive offices, including zip code)

 

(608) 424-1544

(Registrant’s telephone number, including area code)

 

 







Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):





 

 

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).



Emerging growth company



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 



Item 2.02 Results of Operations and Financial Condition.



The following information, including Exhibit 99.1 hereto, referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.



On December 7, 2017, Duluth Holdings Inc. (the “Company” or “Duluth Trading”) issued a press release (the “Earnings Press Release”) discussing, among other things, its financial results for its fiscal third quarter ended October 29, 2017. A copy of the Earnings Press Release is furnished as Exhibit 99.1 to this report.



Forward Looking Information



Certain matters discussed in this Current Report on Form 8-K and other oral and written statements by representatives of the Company including, but not limited to, the Company’s ability to meet its fiscal 2017 expectations (including its ability to increase net sales, adjusted EBITDA, and diluted EPS) and its ability to execute on its growth strategies and its long-term growth targets, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  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,” “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 result or 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 Part 1, Item 1A "Risk Factors" in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2017, 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. 




 



Item 9.01 Financial Statements and Exhibits.



 (d)  Exhibits.

The following exhibits are being furnished with this Current Report on Form 8-K.



 

 

 

 

 

 

 

 

 

Exhibit No.

 

Description

 

99.1

 

Earnings Press Release, dated December 7, 2017




 



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.







 

 

 

 

 

 

 

DULUTH HOLDINGS INC.

Date:  December 7, 2017

 

 

 

 

 

 

By:

/s/ David Loretta

 

 

Name: David Loretta

 

 

Title: Senior Vice President and Chief Financial Officer








 



EXHIBIT INDEX





 

Exhibit No.

Description

99.1

Earnings Press Release, dated December 7, 2017






Exhibit 99.1





Picture 1





Duluth Holdings Inc. Announces Third Quarter Fiscal 2017 Financial Results



Belleville, WI – Dec. 7, 2017  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 third quarter ended October 29, 2017.



Highlights for the Third Quarter Ended October 29, 2017 



·

Net sales increased 25.0% to $83.7 million compared to $67.0 million in the prior-year third quarter

·

Gross margin decreased 120 basis points (bps) to 56.6% compared to 57.8% in the prior-year third quarter

·

Net loss of $0.8 million, or $0.03 per diluted share compared to net income of $0.5 million, or $0.01 per diluted share in the prior-year third quarter

·

Adjusted EBITDA1 decreased 24.9% to $1.9 million compared to $2.5 million in the prior-year third quarter 

·

During the third quarter, the Company opened three retail stores in St. Charles, MO, Thornton, CO and Avon, OH

·

31st 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.



Management Commentary



This marks our 31st consecutive quarter of increased net sales year-over-year. Our 25% top line growth reflects our commitment to investing in our omnichannel model. We are growing our brand, attracting new customers, and the direct growth in our established store markets continues to perform well,” said Stephanie Pugliese, Chief Executive Officer of Duluth Trading.



“On the retail side of the business, we have completed our plan of opening 15 new stores in fiscal 2017. I am proud of our team’s execution of opening new stores on schedule and within budget. In total, we added approximately 173,000 selling square feet, and all our new stores are performing very well. We continue to attract new customers through our retail stores and during the third quarter, new customers acquired through retail was up 81%.”



We remain committed to investing in our omnichannel model and believe it is vital to building brand awareness and delivering holistic growth to our Company. Based on our results to date, we are reaffirming our fiscal 2017 outlook.” 





1

 


 

Operating Results for the Third Quarter Ended October 29, 2017



Net sales increased 25.0% to $83.7 million, compared to $67.0 million in the same period a year ago. The net sales increase was driven by a  3.6% growth in direct net sales and a  100.7% growth in retail net sales. Growth was achieved in virtually all product categories. The increase in retail net sales was primarily attributable to an increase of 12 stores in the third quarter of 2017 as compared to the same period a year ago.



Gross profit increased 22.4% to $47.4 million, or 56.6% of net sales, compared to $38.7 million, or 57.8% of net sales, in the corresponding prior-year period. The 120 basis point decrease in gross margin was primarily due to a continuing decline in shipping revenues coupled with an increase in freight cost from the Company’s distribution center to the retail stores. The Company’s product margins were up as compared to the prior-year period primarily due to improved initial mark-up and product mix.



Selling, general and administrative expenses increased 26.7% to $48.0 million, compared to $37.9 million in the same period a year ago. As a percentage of net sales, selling, general and administrative expenses increased 80 basis points to 57.4%, compared to 56.6% in the corresponding prior-year period. As a percentage of net sales, advertising and marketing costs decreased 160 basis points to 20.2%, compared to 21.8% in the corresponding prior-year period, primarily attributable to a decline in digital advertising and catalog costs as percentage of net sales, which was partially offset by an increase in television and retail store advertising as a percentage of net sales.  As a percentage of net sales, selling expenses increased 60 basis points to 15.8%, compared to 15.2% in the corresponding prior-year period, primarily due to an increase in customer service expenses due to retail store growth, which was partially offset by leverage in shipping expenses from an increase in the proportion of retail net sales. As a percentage of net sales, general and administrative expenses increased 170 basis points to 21.4%, compared to 19.7% in the corresponding prior-year period, primarily due to an increase in store occupancy and equipment expense,  an expense in connection with the retirement of a senior management employee and an increase in depreciation expense.



Balance Sheet and Liquidity



The Company ended the quarter with a cash balance of approximately $1.0 million, with net working capital of $86.6 million, and $9.9 million available on its $60.0 million revolving line of credit. Effective November 1, 2017, the Company’s borrowing availability under its revolving line of credit increased to $80.0 million through December 31, 2017.  On January 1, 2018, the Company’s borrowing availability under its revolving line of credit will decrease to $60.0 million through July 31, 2019.



Fiscal 2017 Outlook



The Company reaffirmed its fiscal 2017 outlook as follows:



·

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



The Company expects fiscal 2017 capital expenditures net of proceeds from finance lease obligations of $42.0 to $44.0 million2



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 opening of 15  stores and information technology investments.





2

 


 

The table below recaps the Company’s fiscal 2017 stores opened and signed new store leases and the anticipated opening timeframe.









 

 

Location

 

Timing

Noblesville, IN

 

Opened March 2, 2017

Burlington, MA

 

Opened March 23, 2017

Macomb, MI

 

Opened April 6, 2017

Warwick, RI

 

Opened April 27, 2017

West Chester, OH

 

Opened May 11, 2017

Pittsburgh, PA

 

Opened June 8, 2017

Red Wing, MN

 

Opened July 15, 2017

St. Charles, MO

 

Opened August 31, 2017

Thornton, CO

 

Opened September 7, 2017

Avon, OH

 

Opened October 5, 2017

Louisville, KY

 

Opened November 2, 2017

Woodbury, MN

 

Opened November 9, 2017

Grandville, MI

 

Opened November 16, 2017

Waukesha, WI

 

Opened November 29, 2017

Wixom, MI

 

Opened November 30, 2017

Anchorage, AK

 

Q1 Fiscal 2018

West Fargo, ND

 

Q1 Fiscal 2018

Lubbock, TX

 

Q1 Fiscal 2018

Portland, OR

 

Q1 or Q2 Fiscal 2018

Denton, TX

 

Q2 Fiscal 2018

Columbus, OH

 

Q2 Fiscal 2018

Arlington, TX

 

Q2 Fiscal 2018

Nashville, TN

 

Q3 Fiscal 2018

South Portland, ME

 

Q3 Fiscal 2018



 

 



Conference Call Information

A conference call and audio webcast with analysts and investors will be held on Thursday, December 7, 2017 at 9:30 am 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 December 21, 2017: 877-344-7529 (domestic) or 412-317-0088 (international)

·

Replay access code: 10114399

·

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/10114399 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 December 7th.



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,

3

 


 

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 and nine months ended October 29, 2017, versus the three and nine months ended October 30, 2016See 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 Part 1, Item 1A Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC  on March 22, 2017, 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

4

 


 

actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.







Investor Contacts:

Donni Case (310) 622-8224

Johan Yokay (310) 622-8241

Financial Profiles, Inc.

Duluth@finprofiles.com



# # #

(Tables Follow)

5

 


 



DULUTH HOLDINGS INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands)



















 

 

 

 

 

 



 

October 29, 2017

 

January 29, 2017



 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$

958 

 

$

24,042 

Accounts receivable

 

 

62 

 

 

45 

Other receivables

 

 

1,669 

 

 

349 

Inventory, net

 

 

129,475 

 

 

70,368 

Prepaid expenses

 

 

8,820 

 

 

4,860 

Deferred catalog costs

 

 

4,431 

 

 

1,582 

Total current assets

 

 

145,415 

 

 

101,246 

Property and equipment, net

 

 

98,151 

 

 

52,432 

Restricted cash

 

 

2,169 

 

 

1,435 

Available-for-sale security

 

 

6,323 

 

 

Goodwill

 

 

402 

 

 

402 

Other assets, net

 

 

487 

 

 

452 

Total assets

 

$

252,947 

 

$

155,967 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Trade accounts payable

 

$

30,082 

 

$

9,330 

Accrued expenses and other current liabilities

 

 

25,676 

 

 

19,822 

Income taxes payable

 

 

 

 

5,225 

Bank overdrafts

 

 

2,930 

 

 

Current maturities of long-term debt

 

 

84 

 

 

742 

Total current liabilities

 

 

58,772 

 

 

35,119 

Long-term line of credit

 

 

50,101 

 

 

Finance lease obligations under build-to-suit leases

 

 

18,484 

 

 

3,349 

Long-term debt, less current maturities

 

 

1,445 

 

 

35 

Deferred rent obligations, less current maturities

 

 

3,305 

 

 

2,109 

Deferred tax liabilities

 

 

1,507 

 

 

1,567 

Total liabilities

 

 

133,614 

 

 

42,179 

Commitments and contingencies

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Treasury stock

 

 

(57)

 

 

Capital stock

 

 

87,632 

 

 

86,446 

Retained earnings

 

 

28,556 

 

 

24,733 

Total shareholders' equity of Duluth Holdings Inc.

 

 

116,131 

 

 

111,179 

Noncontrolling interest

 

 

3,202 

 

 

2,609 

Total shareholders' equity

 

 

119,333 

 

 

113,788 

Total liabilities and shareholders' equity

 

$

252,947 

 

$

155,967 



6

 


 



DULUTH HOLDING INC.

Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except per share figures)

















 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Nine Months Ended



 

October 29, 2017

 

October 30, 2016

 

October 29, 2017

 

October 30, 2016

Net sales

 

$

83,729 

 

$

67,008 

 

$

253,642 

 

$

201,463 

Cost of goods sold (excluding depreciation and amortization)

 

 

36,302 

 

 

28,260 

 

 

108,649 

 

 

84,102 

Gross profit

 

 

47,427 

 

 

38,748 

 

 

144,993 

 

 

117,361 

Selling, general and administrative expenses

 

 

48,039 

 

 

37,929 

 

 

137,467 

 

 

105,215 

Operating (loss) income

 

 

(612)

 

 

819 

 

 

7,526 

 

 

12,146 

Interest expense

 

 

661 

 

 

33 

 

 

1,199 

 

 

108 

Other income, net

 

 

73 

 

 

33 

 

 

175 

 

 

163 

(Loss) income before income taxes

 

 

(1,200)

 

 

819 

 

 

6,502 

 

 

12,201 

Income tax (benefit) expense

 

 

(454)

 

 

305 

 

 

2,480 

 

 

4,691 

Net (loss) income

 

 

(746)

 

 

514 

 

 

4,022 

 

 

7,510 

Less: Net income attributable to noncontrolling interest

 

 

70 

 

 

52 

 

 

199 

 

 

188 

Net (loss) income attributable to controlling interest

 

$

(816)

 

$

462 

 

$

3,823 

 

$

7,322 

Basic earnings per share (Class A and Class B):

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of
   common stock outstanding

 

 

31,861 

 

 

31,520 

 

 

31,837 

 

 

31,520 

Net (loss) income per share attributable

   to controlling interest

 

$

(0.03)

 

$

0.01 

 

$

0.12 

 

$

0.23 

Diluted earnings per share (Class A and Class B):

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares and
   equivalents outstanding

 

 

31,861 

 

 

32,294 

 

 

32,297 

 

 

32,286 

Net (loss) income per share attributable

   to controlling interest

 

$

(0.03)

 

$

0.01 

 

$

0.12 

 

$

0.23 



7

 


 



DULUTH HOLDINGS INC.

Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)















 

 

 

 

 

 



 

Nine Months Ended



 

October 29, 2017

 

October 30, 2016

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

4,022 

 

$

7,510 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

5,104 

 

 

3,215 

Amortization of stock-based compensation

 

 

1,186 

 

 

969 

Deferred income taxes

 

 

(60)

 

 

151 

Loss on disposal of property and equipment

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(17)

 

 

(10)

Other receivables

 

 

(1,320)

 

 

(3,007)

Inventory

 

 

(57,020)

 

 

(40,891)

Prepaid expense

 

 

(3,136)

 

 

181 

Deferred catalog costs

 

 

(1,006)

 

 

485 

Trade accounts payable

 

 

18,665 

 

 

6,713 

Income taxes payable

 

 

(5,225)

 

 

(1,308)

Accrued expenses and deferred rent obligations

 

 

3,850 

 

 

(794)

Net cash used in operating activities

 

 

(34,957)

 

 

(26,783)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(37,501)

 

 

(21,026)

Purchase of available-for-sale security

 

 

(6,323)

 

 

Change in restricted cash

 

 

(734)

 

 

(1,367)

Purchases of other assets

 

 

(85)

 

 

(80)

Net cash used in investing activities

 

 

(44,643)

 

 

(22,473)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from line of credit

 

 

76,476 

 

 

18,156 

Payments on line of credit

 

 

(26,375)

 

 

(4,947)

Proceeds from long term debt

 

 

800 

 

 

Payments on long term debt

 

 

(34)

 

 

(4,216)

Payments on capital lease obligations

 

 

(14)

 

 

(14)

Change in bank overdrafts

 

 

2,930 

 

 

2,055 

Distributions to shareholders

 

 

 

 

(192)

Distributions to holders of noncontrolling interest in variable interest entity

 

 

(400)

 

 

(30)

Proceeds from finance lease obligations

 

 

2,358 

 

 

Capital contributions to variable interest entity

 

 

794 

 

 

744 

Shares withheld for tax payments on vested restricted shares

 

 

(57)

 

 

Other

 

 

38 

 

 

Net cash provided by financing activities

 

 

56,516 

 

 

11,556 

Decrease in cash

 

 

(23,084)

 

 

(37,700)

Cash at beginning of period

 

 

24,042 

 

 

37,873 

Cash at end of period

 

$

958 

 

$

173 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

Interest paid

 

$

947 

 

$

116 

Income taxes paid

 

$

8,950 

 

$

7,929 

Supplemental disclosure of non-cash information

 

 

 

 

 

 

Property and equipment acquired under build-to-suit leases

 

$

12,739 

 

$

1,957 

Unpaid liability to acquire property and equipment

 

$

4,144 

 

$

3,922 





8

 


 

DULUTH HOLDINGS INC.

Reconciliation of Net Income to EBITDA and EBITDA to Adjusted EBITDA

(Unaudited)

(Amounts in thousands)















 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Nine Months Ended



 

October 29, 2017

 

October 30, 2016

 

October 29, 2017

 

October 30, 2016

Net (loss) income

 

$

(746)

 

$

514 

 

$

4,022 

 

$

7,510 

Depreciation and amortization

 

 

1,824 

 

 

1,264 

 

 

5,104 

 

 

3,215 

Interest expense

 

 

661 

 

 

33 

 

 

1,199 

 

 

108 

Income tax (benefit) expense

 

 

(454)

 

 

305 

 

 

2,480 

 

 

4,691 

EBITDA

 

$

1,285 

 

$

2,116 

 

$

12,805 

 

$

15,524 

Non-cash stock based compensation

 

 

569 

 

 

354 

 

 

1,186 

 

 

969 

Adjusted EBITDA

 

$

1,854 

 

$

2,470 

 

$

13,991 

 

$

16,493 







DULUTH HOLDINGS INC.

Segment Information

(Unaudited)

(Amounts in thousands)

















 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Nine Months Ended



 

October 29, 2017

 

October 30, 2016

 

October 29, 2017

 

October 30, 2016

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

$

54,146 

 

$

52,271 

 

$

175,588 

 

$

166,437 

Retail

 

 

29,583 

 

 

14,737 

 

 

78,054 

 

 

35,026 

Total net sales

 

$

83,729 

 

$

67,008 

 

$

253,642 

 

$

201,463 

Operating (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

$

(2,738)

 

$

(84)

 

$

230 

 

$

8,694 

Retail

 

 

2,126 

 

 

903 

 

 

7,296 

 

 

3,452 

Total operating (loss) income

 

 

(612)

 

 

819 

 

 

7,526 

 

 

12,146 

Interest expense

 

 

661 

 

 

33 

 

 

1,199 

 

 

108 

Other income, net

 

 

73 

 

 

33 

 

 

175 

 

 

163 

(Loss) income before income taxes

 

$

(1,200)

 

$

819 

 

$

6,502 

 

$

12,201 







DULUTH HOLDINGS INC.

Reconciliation of Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA

For 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

 

 

8,400 

 

 

8,400 

 

 

8,400 

Interest expense

 

 

2,000 

 

 

2,000 

 

 

2,000 

Income tax expense

 

 

13,600 

 

 

14,200 

 

 

14,600 

EBITDA

 

$

45,500 

 

$

47,000 

 

$

48,000 

Non-cash stock based compensation

 

 

1,500 

 

 

1,500 

 

 

1,500 

Adjusted EBITDA

 

$

47,000 

 

$

48,500 

 

$

49,500 



9

 


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SEC Filings