Q2 FY24 Net Sales of $155.2 Million, Total
Company Comparable Sales Up 1.7% vs. Q2 FY23
Q2 FY24 Gross Margin of 70.5%
Q2 FY24 Operating Income of $23.0 Million;
Operating Income Margin of 14.8%
J.Jill, Inc. (NYSE:JILL) today announced financial results for
the second quarter of fiscal year 2024.
Claire Spofford, President and Chief Executive Officer of
J.Jill, Inc. stated, “We delivered solid second quarter results
driven by a strong start to the quarter and ongoing disciplined
execution of our operating model amidst a dynamic consumer
environment. While we have seen changes in consumer behavior during
the summer months which has extended into the start of the third
quarter and reflected in our updated guidance, we are continuing to
operate the business with great discipline and continue to realize
healthy margin performance and deliver significant cash flow
generation. We remain focused on delivering against our long-term
objectives as we continue to advance our strategic initiatives
focused on increasing brand awareness, strengthening our
omni-channel capabilities and enhancing the overall customer
experience which we believe will position J.Jill for long-term
sustainable growth.”
For the second quarter ended August 3, 2024:
- Net sales for the second quarter of fiscal 2024 decreased 0.9%
to $155.2 million compared to $156.6 million for the second quarter
of fiscal 2023. The decrease includes approximately $7.0 million of
impact due to the calendar shift associated with the 53rd week in
fiscal 2023.
- Total company comparable sales, which includes comparable store
and direct to consumer sales, increased by 1.7% for the second
quarter of fiscal 2024.
- Direct to consumer net sales, which represented 47.1% of net
sales, were up 3.6% compared to the second quarter of fiscal
2023.
- Gross profit was $109.4 million compared to $112.4 million in
the second quarter of fiscal 2023. Gross margin was 70.5% compared
to 71.7% in the second quarter of fiscal 2023.
- SG&A was $86.3 million compared to $84.3 million in the
second quarter of fiscal 2023. Excluding non-recurring items from
both periods, SG&A as a percentage of total net sales was 55.5%
compared to 53.8% for the second quarter of fiscal 2023.
- Operating income was $23.0 million compared to $28.0 million in
the second quarter of fiscal 2023. Operating income margin for the
second quarter of fiscal 2024 was 14.8% compared to 17.9% in the
second quarter of fiscal 2023. Adjusted Income from Operations* was
$24.9 million compared to $29.1 million in the second quarter of
fiscal 2023.
- Interest expense was $3.7 million compared to $6.6 million in
the second quarter of fiscal 2023. Interest income was $0.5 million
in the second quarter of fiscal 2024 and fiscal 2023.
- During the second quarter of fiscal 2024, the Company recorded
an income tax provision of $3.1 million compared to $6.7 million in
the second quarter of fiscal 2023 and the effective tax rate was
27.3% compared to 30.5% in the second quarter of fiscal 2023.
- Net Income was $8.2 million compared to $15.2 million in the
second quarter of fiscal 2023.
- Net Income per Diluted Share was $0.54 compared to $1.06 in the
second quarter of fiscal 2023. Adjusted Net Income per Diluted
Share* in the second quarter of fiscal 2024 was $1.05 compared to
$1.15 in the second quarter of fiscal 2023.
- Adjusted EBITDA* for the second quarter of fiscal 2024 was
$30.2 million compared to $34.6 million in the second quarter of
fiscal 2023. Adjusted EBITDA margin* for the second quarter of
fiscal 2024 was 19.4% compared to 22.1% in the second quarter of
fiscal 2023.
- The Company opened one new store in the second quarter of
fiscal 2024 and temporarily closed one store for relocation which
will reopen in the third quarter of fiscal 2024. The store count at
the end of the quarter remained unchanged at 244 stores.
For the twenty-six weeks ended August 3, 2024:
- Net sales for the twenty-six weeks ended August 3, 2024
increased 3.2% to $316.8 million compared to $306.9 million for the
twenty-six weeks ended July 29, 2023.
- Total company comparable sales, which includes comparable store
and direct to consumer sales, increased by 2.4% for the twenty-six
weeks ended August 3, 2024.
- Direct to consumer net sales, which represented 47.0% of net
sales, were up 7.5% compared to the twenty-six weeks ended July 29,
2023.
- Gross profit was $227.1 million compared to $220.7 million for
the twenty-six weeks ended July 29, 2023. Gross margin was 71.7%
compared to 71.9% for the twenty-six weeks ended July 29,
2023.
- SG&A was $175.4 million compared to $167.3 million for the
twenty-six weeks ended July 29, 2023. Excluding non-recurring items
from both periods, SG&A as a percentage of total net sales was
55.4% compared to 54.5% for the twenty-six weeks ended July 29,
2023.
- Operating income was $51.4 million compared to $53.4 million
for the twenty-six weeks ended July 29, 2023. Operating income
margin for the twenty-six weeks ended August 3, 2024 was 16.2%
compared to 17.4% for the twenty-six weeks ended July 29, 2023.
Adjusted Income from Operations* was $54.5 million compared to
$55.3 million for the twenty-six weeks ended July 29, 2023.
- Interest expense was $10.2 million compared to $13.3 million
for the twenty-six weeks ended July 29, 2023. Interest income was
$1.5 million compared to $1.0 million for the twenty-six weeks
ended July 29, 2023.
- During the twenty-six weeks ended August 3, 2024, the Company
recorded an income tax provision of $9.3 million compared to $8.6
million for the twenty-six weeks ended July 29, 2023 and the
effective tax rate was 27.2% compared to 30.3% for the twenty-six
weeks ended July 29, 2023.
- Net Income was $24.9 million compared to $19.8 million for the
twenty-six weeks ended July 29, 2023.
- Net Income per Diluted Share was $1.69 compared to $1.38 for
the twenty-six weeks ended July 29, 2023. Adjusted Net Income per
Diluted Share* for the twenty-six weeks ended August 3, 2024 was
$2.27 compared to $2.16 for the twenty-six weeks ended July 29,
2023.
- Adjusted EBITDA* for the twenty-six weeks ended August 3, 2024
was $65.8 million compared to $66.5 million for the twenty-six
weeks ended July 29, 2023. Adjusted EBITDA margin* for the
twenty-six weeks ended August 3, 2024 was 20.8% compared to 21.7%
for the twenty-six weeks ended July 29, 2023.
- The Company opened one new store for the twenty-six weeks ended
August 3, 2024 and temporarily closed one store for relocation
which will reopen in the third quarter of fiscal 2024. The store
count at the end of the twenty-six weeks ended August 3, 2024
remained unchanged at 244 stores.
Balance Sheet Highlights
- Net Cash provided by Operating Activities for the twenty-six
weeks ended August 3, 2024 was $37.9 million compared to $35.6
million for the twenty-six weeks ended July 29, 2023. Free cash
flow* was $33.3 million compared to $28.5 million for the
twenty-six weeks ended July 29, 2023. The Company ended the second
quarter of fiscal 2024 with a cash balance of $28.5 million.
- Inventory at the end of the second quarter of fiscal 2024 was
$52.7 million compared to $45.7 million at the end of the second
quarter of fiscal 2023. The increase in inventory compared to the
prior year period was driven by timing and the strategic decision
to expedite shipping goods one week early.
*Non-GAAP financial measures. Please see “Non-GAAP Financial
Measures” and “Reconciliation of GAAP Net Income to Adjusted
EBITDA,” “Reconciliation of GAAP Operating Income to Adjusted
Income from Operations,” “Reconciliation of GAAP Net Income to
Adjusted Net Income,” and “Reconciliation of GAAP Cash from
Operations to Free Cash Flow” for more information.
Subsequent Events
On August 20, 2024, the Company issued 3,317,488 shares of
common stock following the exercise of 3,318,443 warrants. The
exercise price of the warrants was net share settled as specified
in the Warrant Agreement. As a result of this transaction, the
number of shares outstanding increased to 15,084,356 and the number
of warrants outstanding decreased to 255,265. As the exercise of
the warrants is near certain due to its non-substantive exercise
price in relation to the fair value of the common shares issuable
upon exercise, the exercise of these warrants has no impact on net
income per common share, both basic and diluted.
On August 28, 2024, the Board of Directors declared quarterly
cash dividend of $0.07 per share of the Company’s common stock. The
dividend is payable on October 2, 2024, to stockholders of record
as of September 18, 2024. The Company intends to pay dividends
quarterly in the future, subject to market conditions and approval
by the Board of Directors.
Outlook
For the third quarter of fiscal 2024, the Company expects net
sales to be down 1% to up 2% compared to the third quarter of
fiscal 2023. The Company also expects Adjusted EBITDA to be in the
range of $23.0 million to $27.0 million.
For fiscal 2024, the Company is lowering its guidance and now
expects net sales to be about flat to up 1% compared to fiscal
2023, and for Adjusted EBITDA to decline in the range of 4% to 9%
compared to fiscal 2023. This guidance reflects the negative impact
from the loss of the 53rd week in fiscal 2023 of $7.9 million in
net sales and $2.2 million in Adjusted EBITDA as well as
investments to support profitable sales growth, including
approximately $2 million in operating expenses related to the
Company’s Order Management System (“OMS”) project.
Excluding the impact of the 53rd week as well as the operating
expense investment in the OMS project, the Company expects fiscal
2024 net sales to grow in the range of 2% to 3% and Adjusted EBITDA
to decline in the range of 1% to 6% compared to the prior year.
The Company continues to expect net store count growth of up to
5 stores to end fiscal 2024. The Company now expects total capital
expenditures of approximately $22.0 million, which reflects the
treatment of cloud based software implementation costs as pre-paid
expense.
Conference Call Information
A conference call to discuss second quarter 2024 results is
scheduled for today, September 4, 2024, at 8:00 a.m. Eastern Time.
Those interested in participating in the call are invited to dial
(888) 596-4144 or (646) 968-2525 if calling internationally. Please
dial in approximately 10 minutes prior to the start of the call and
reference Conference ID 7311773 when prompted. A live audio webcast
of the conference call will be available online at
http://investors.jjill.com/Investors-Relations/News-Events/events.
A taped replay of the conference call will be available
approximately two hours following the call and can be accessed both
online and by dialing (800) 770-2030 or (609) 800-9909. The pin
number to access the telephone replay is 7311773. The telephone
replay will be available until September 11, 2024.
About J.Jill, Inc.
J.Jill is a national lifestyle brand that provides apparel,
footwear and accessories designed to help its customers move
through a full life with ease. The brand represents an easy,
thoughtful and inspired style that celebrates the totality of all
women and designs its products with its core brand ethos in mind:
keep it simple and make it matter. J.Jill offers a high touch
customer experience through over 200 stores nationwide and a robust
ecommerce platform. J.Jill is headquartered outside Boston. For
more information, please visit www.jjill.com or
http://investors.jjill.com. The information included on our
websites is not incorporated by reference herein.
Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented in accordance with generally accepted accounting
principles (“GAAP”), we use the following non-GAAP measures of
financial performance:
- Adjusted EBITDA, which represents net income plus depreciation
and amortization, income tax provision, interest expense, interest
expense - related party, interest income, equity-based compensation
expense, write-off of property and equipment, amortization of
cloud-based software implementation costs, loss on extinguishment
of debt, loss on debt refinancing, adjustment for exited retail
stores, impairment of long-lived assets and other non-recurring
items, primarily consisting of outside legal and professional fees
associated with certain non-recurring transactions and events. We
present Adjusted EBITDA on a consolidated basis because management
uses it as a supplemental measure in assessing our operating
performance, and we believe that it is helpful to investors,
securities analysts and other interested parties as a measure of
our comparative operating performance from period to period. We
also use Adjusted EBITDA as one of the primary methods for planning
and forecasting overall expected performance of our business and
for evaluating on a quarterly and annual basis actual results
against such expectations. Further, we recognize Adjusted EBITDA as
a commonly used measure in determining business value and as such,
use it internally to report results. We also use Adjusted EBITDA
margin which represents, for any period, Adjusted EBITDA as a
percentage of net sales.
- Adjusted Income from Operations, which represents operating
income plus equity-based compensation expense, write-off of
property and equipment, adjustment for exited retail stores,
impairment of long-lived assets and other non-recurring items. We
present Adjusted Income from Operations because management uses it
as a supplemental measure in assessing our operating performance,
and we believe that it is helpful to investors, securities
analysts, and other interested parties as a measure of our
comparative operating performance from period to period.
- Adjusted Net Income, which represents net income plus income
tax provision, equity-based compensation expense, write-off of
property and equipment, loss on extinguishment of debt, loss on
debt refinancing, adjustment for exited retail stores, impairment
of long-lived assets and other non-recurring items. We present
Adjusted Net Income because management uses it as a supplemental
measure in assessing our operating performance, and we believe that
it is helpful to investors, securities analysts and other
interested parties as a measure of our comparative operating
performance from period to period.
- Adjusted Net Income per Diluted Share represents Adjusted Net
Income divided by the number of fully diluted shares outstanding.
Adjusted Net Income per Diluted Share is presented as a
supplemental measure in assessing our operating performance, and we
believe that it is helpful to investors, securities analysts and
other interested parties as a measure of our comparative operating
performance from period to period.
- Free Cash Flow represents cash flow from operations less
capital expenditures. Free Cash Flow is presented as a supplemental
measure in assessing our liquidity, and we believe that it is
helpful to investors, securities analysts and other interested
parties as a measure of our comparative liquidity and operating
performance from period to period.
While we believe that Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Income from Operations, Adjusted Net Income, Adjusted
Diluted EPS and Free Cash Flow are useful in evaluating our
business, they are non-GAAP financial measures that have
limitations as analytical tools. These non-GAAP measures should not
be considered alternatives to, or substitutes for, Net Income,
Income from Operations, Net Income per Diluted Share or Cash from
Operations, which are calculated in accordance with GAAP. In
addition, other companies, including companies in our industry, may
calculate these non-GAAP measures differently or not at all, which
reduces the usefulness of such non-GAAP financial measures as tools
for comparison. We recommend that you review the reconciliation and
calculation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Income from Operations, Adjusted Net Income, Adjusted Diluted EPS
and Free Cash Flow to Net Income, Income from Operations, Net
Income per Diluted Share and Cash from Operations, respectively,
the most directly comparable GAAP financial measures, under
“Reconciliation of GAAP Net Income to Adjusted EBITDA”,
“Reconciliation of GAAP Operating Income to Adjusted Income from
Operations”, “Reconciliation of GAAP Net Income to Adjusted Net
Income” and “Reconciliation of Cash from Operations to Free Cash
Flows” and not rely solely on Adjusted EBITDA, Adjusted EBITDA
margin, Adjusted Income from Operations, Adjusted Net Income,
Adjusted Net Income per Diluted Share, Free Cash Flow or any single
financial measure to evaluate our business.
Forward-Looking Statements
This press release contains, and oral statements made from time
to time by our representatives may contain, “forward-looking
statements.” All statements other than statements of historical
facts contained in this press release, including statements
regarding our strategy, future operations, future financial
position, future revenue, projected costs, prospects, plans,
objectives of management, expected market growth and any
activities, events or developments that we intend, expect or
believe may occur in the future are forward-looking statements.
Such statements are often identified by words such as “could,”
“may,” “might,” “will,” “likely,” “anticipates,” “intends,”
“plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,”
“projects,” “goal,” “target” (although not all forward-looking
statements contain these identifying words) and similar references
to future periods, or by the inclusion of forecasts or projections.
Forward-looking statements are based on our current expectations
and assumptions regarding capital market conditions, our business,
the economy and other future conditions and are not guarantees of
future performance. Because forward-looking statements relate to
the future, by their nature, they are inherently subject to a
number of risks, uncertainties, potentially inaccurate assumptions
and changes in circumstances that are difficult to predict. As a
result, our actual results may differ materially from those
contemplated by the forward-looking statements. Important factors
that could cause actual results to differ materially from those in
any forward-looking statements include regional, national or global
political, economic, business, competitive, market and regulatory
conditions, including risks regarding: (1) our sensitivity to
changes in economic conditions and discretionary consumer spending;
(2) the material adverse impact of pandemics or other health crises
on our operations, business and financial results; (3) our ability
to anticipate and respond to changing customer preferences, shifts
in fashion and industry trends in a timely manner; (4) our ability
to maintain our brand image, engage new and existing customers and
gain market share; (5) the impact of operating in a highly
competitive industry with increased competition; (6) our ability to
successfully optimize our omnichannel operations, including our
ability to enhance our marketing efforts and successfully realize
the benefits from our investments in new technology, for example
our recently implemented point-of-sale system and the forthcoming
upgrade to our order management system; (7) our ability to use
effective marketing strategies and increase existing and new
customer traffic; (8) any interruptions in our foreign sourcing
operations and the relationships with our suppliers and agents; (9)
any increases in the demand for, or the price of, raw materials
used to manufacture our merchandise and other fluctuations in
sourcing and distribution costs; (10) any material damage or
interruptions to our information systems; (11) our ability to
protect our trademarks and other intellectual property rights; (12)
our indebtedness restricting our operational and financial
flexibility; (13) our ability to manage our inventory levels, size
assortments and merchandise mix; (14) the fact that we are no
longer a controlled company; and (15) other factors that may be
described in our filings with the Securities and Exchange
Commission (the “SEC”), including the factors set forth under “Risk
Factors” in our Annual Report on Form 10-K for the fiscal year
ended February 3, 2024. You are encouraged to read our filings with
the SEC, available at www.sec.gov, for a discussion of these and
other risks and uncertainties. We caution investors, potential
investors and others not to place considerable reliance on the
forward-looking statements in this press release and in the oral
statements made by our representatives. Any such forward-looking
statement speaks only as of the date on which it is made. J.Jill
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
(Tables Follow)
J.Jill, Inc.
Consolidated Statements of
Operations and Comprehensive Income
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Thirteen Weeks
Ended
August 3, 2024
July 29, 2023
Net sales (a)
$
155,242
$
156,631
Costs of goods sold (exclusive of
depreciation and amortization)
45,848
44,260
Gross profit
109,394
112,371
Selling, general and administrative
expenses (a)
86,314
84,282
Impairment of long-lived assets
58
45
Operating income
23,022
28,044
Loss on extinguishment of debt
8,570
—
Interest expense (b)
3,724
6,630
Interest income (b)
538
473
Income before provision for income
taxes
11,266
21,887
Income tax provision
3,075
6,665
Net income and total comprehensive
income
$
8,191
$
15,222
Net income per common share:
Basic
$
0.55
$
1.08
Diluted
$
0.54
$
1.06
Weighted average common shares:
Basic
14,906,662
14,158,837
Diluted
15,098,301
14,367,751
Cash dividends declared per common
share
$
0.07
—
(a)
For the second quarter of fiscal 2023, Net
sales includes $1.0 million of processing fee income related to
customer sales returns that was previously included in Selling,
general and administrative expenses.
(b)
Beginning fiscal 2024, Interest income is
presented separately from Interest expense. The prior period has
been conformed with the current period presentation
J.Jill, Inc.
Consolidated Statements of
Operations and Comprehensive Income
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Twenty-Six Weeks
Ended
August 3, 2024
July 29, 2023
Net sales (a)
$
316,755
$
306,877
Costs of goods sold (exclusive of
depreciation and amortization)
89,624
86,140
Gross profit
227,131
220,737
Selling, general and administrative
expenses (a)
175,426
167,254
Impairment of long-lived assets
311
45
Operating income
51,394
53,438
Loss on extinguishment of debt
8,570
—
Loss on debt refinancing
—
12,702
Interest expense (b)
10,160
12,257
Interest expense - related party
—
1,074
Interest income (b)
1,526
1,043
Income before provision for income
taxes
34,190
28,448
Income tax provision
9,303
8,630
Net income and total comprehensive
income
$
24,887
$
19,818
Net income per common share:
Basic
$
1.71
$
1.40
Diluted
$
1.69
$
1.38
Weighted average common shares:
Basic
14,581,796
14,111,124
Diluted
14,746,749
14,345,179
Cash dividends declared per common
share
$
0.07
—
(a)
For the twenty-six weeks ended July 29,
2023, Net sales includes $1.8 million of processing fee income
related to customer sales returns that was previously included in
Selling, general and administrative expenses.
(b)
Beginning fiscal 2024, Interest income is
presented separately from Interest expense. The prior period has
been conformed with the current period presentation.
J.Jill, Inc.
Consolidated Balance
Sheets
(Unaudited)
(Amounts in thousands, except
common share data)
August 3, 2024
February 3, 2024
Assets
Current assets:
Cash and cash equivalents
$
28,466
$
62,172
Accounts receivable
5,068
5,042
Inventories, net
52,709
53,259
Prepaid expenses and other current
assets
19,447
17,656
Total current assets
105,690
138,129
Property and equipment, net
50,883
54,118
Intangible assets, net
63,430
66,246
Goodwill
59,697
59,697
Operating lease assets, net
107,842
108,203
Other assets
3,260
1,787
Total assets
$
390,802
$
428,180
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
44,552
$
41,112
Accrued expenses and other current
liabilities
36,533
42,283
Current portion of long-term debt
4,375
35,353
Current portion of operating lease
liabilities
33,903
36,204
Total current liabilities
119,363
154,952
Long-term debt, net of discount and
current portion
68,831
120,595
Deferred income taxes
9,539
10,967
Operating lease liabilities, net of
current portion
101,405
103,070
Other liabilities
1,300
1,378
Total liabilities
300,438
390,962
Commitments and contingencies
Shareholders’ Equity
Common stock, par value $0.01 per share;
50,000,000 shares authorized; 11,766,868 and 10,614,454 shares
issued and outstanding at August 3, 2024 and February 3, 2024,
respectively
117
107
Additional paid-in capital
241,485
213,236
Accumulated deficit
(151,238
)
(176,125
)
Total shareholders’ equity
90,364
37,218
Total liabilities and shareholders’
equity
$
390,802
$
428,180
J.Jill, Inc.
Reconciliation of GAAP Net
Income to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
For the Thirteen Weeks
Ended
August 3, 2024
July 29, 2023
Net income
$
8,191
$
15,222
Add (Less):
Depreciation and amortization
5,007
5,491
Income tax provision
3,075
6,665
Interest expense (a)
3,724
6,630
Interest income (a)
(538
)
(473
)
Adjustments:
Equity-based compensation expense (b)
1,696
937
Write-off of property and equipment
(c)
51
26
Amortization of cloud-based software
implementation costs (d)
244
61
Loss on extinguishment of debt (e)
8,570
—
Adjustment for exited retail stores
(f)
(106
)
—
Impairment of long-lived assets (g)
58
45
Other non-recurring items (h)
215
2
Adjusted EBITDA
$
30,187
$
34,606
Net sales (i)
$
155,242
$
156,631
Adjusted EBITDA margin
19.4
%
22.1
%
(a)
Beginning fiscal 2024, Interest income is
presented separately from Interest expense. The prior period has
been conformed with the current period presentation.
(b)
Represents expenses associated with equity
incentive instruments granted to our management and Board of
Directors. Incentive instruments are accounted for as
equity-classified awards with the related compensation expense
recognized based on fair value at the date of the grant.
(c)
Represents net gain or loss on the
disposal of fixed assets.
(d)
Represents amortization of capitalized
implementation costs related to cloud-based software arrangements
that are included within Selling, general and administrative
expenses. Adjusted EBITDA for the second quarter of fiscal 2023 has
been restated to include such adjustments to Net income.
(e)
Represents loss on the prepayment of a
portion of the term loan.
(f)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(g)
Represents impairment of long-lived assets
related to right of use assets and leasehold improvements.
(h)
Represents items management believes are
not indicative of ongoing operating performance, including legal
and professional fees.
(i)
For the second quarter of fiscal 2023, Net
sales includes $1.0 million of processing fee income that was
previously included in Selling, general and administrative
expenses.
J.Jill, Inc.
Reconciliation of GAAP Net
Income to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
For the Twenty-Six Weeks
Ended
August 3, 2024
July 29, 2023
Net income
$
24,887
$
19,818
Add (Less):
Depreciation and amortization
10,834
11,062
Income tax provision
9,303
8,630
Interest expense (a)
10,160
12,257
Interest expense - related party
—
1,074
Interest income (a)
(1,526
)
(1,043
)
Adjustments:
Equity-based compensation expense (b)
2,950
1,815
Write-off of property and equipment
(c)
57
46
Amortization of cloud-based software
implementation costs (d)
465
116
Loss on extinguishment of debt (e)
8,570
—
Loss on debt refinancing (f)
—
12,702
Adjustment for exited retail stores
(g)
(615
)
—
Impairment of long-lived assets (h)
311
45
Other non-recurring items (i)
438
2
Adjusted EBITDA
$
65,834
$
66,524
Net sales (j)
$
316,755
$
306,877
Adjusted EBITDA margin
20.8
%
21.7
%
(a)
Beginning fiscal 2024, Interest income is
presented separately from Interest expense. The prior period has
been conformed with the current period presentation.
(b)
Represents expenses associated with equity
incentive instruments granted to our management and Board of
Directors. Incentive instruments are accounted for as
equity-classified awards with the related compensation expense
recognized based on fair value at the date of the grant.
(c)
Represents net gain or loss on the
disposal of fixed assets.
(d)
Represents amortization of capitalized
implementation costs related to cloud-based software arrangements
that are included within Selling, general and administrative
expenses. Adjusted EBITDA for the twenty-six weeks ended July 29,
2023 has been restated to include such adjustments to Net
income.
(e)
Represents loss on the prepayment of a
portion of the term loan.
(f)
Represents loss on the repayment of
priming and the subordinated credit agreement.
(g)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(h)
Represents impairment of long-lived assets
related to right of use assets and leasehold improvements.
(i)
Represents items management believes are
not indicative of ongoing operating performance, including legal
and professional fees.
(j)
For the twenty-six weeks ended July 29,
2023, Net sales includes $1.8 million of processing fee income that
was previously included in Selling, general and administrative
expenses.
J.Jill, Inc.
Reconciliation of GAAP
Operating Income to Adjusted Income from Operations
(Unaudited)
(Amounts in thousands)
For the Thirteen Weeks
Ended
August 3, 2024
July 29, 2023
Operating income
$
23,022
$
28,044
Add (Less):
Equity-based compensation expense (a)
1,696
937
Write-off of property and equipment
(b)
51
26
Adjustment for exited retail stores
(c)
(106
)
—
Impairment of long-lived assets (d)
58
45
Other non-recurring items (e)
215
2
Adjusted income from operations
$
24,936
$
29,054
For the Twenty-Six Weeks
Ended
August 3, 2024
July 29, 2023
Operating income
$
51,394
$
53,438
Add (Less):
Equity-based compensation expense (a)
2,950
1,815
Write-off of property and equipment
(b)
57
46
Adjustment for exited retail stores
(c)
(615
)
—
Impairment of long-lived assets (d)
311
45
Other non-recurring items (e)
438
2
Adjusted income from operations
$
54,535
$
55,346
(a)
Represents expenses associated with equity
incentive instruments granted to our management and Board of
Directors. Incentive instruments are accounted for as
equity-classified awards with the related compensation expense
recognized based on fair value at the date of the grant. Adjusted
income from operations for the second quarter of fiscal 2023 and
for the twenty-six weeks ended July 29, 2023 has been restated to
include such adjustments to Operating income. Beginning fiscal
2024, equity-based compensation expense is included as an
adjustment. The prior period has been conformed with the current
period presentation.
(b)
Represents net gain or loss on the
disposal of fixed assets. Adjusted income from operations for the
second quarter of fiscal 2023 and for the twenty-six weeks ended
July 29, 2023 has been restated to include such adjustments to
Operating income. Beginning fiscal 2024, write-off of property and
equipment is included as an adjustment. The prior period has been
conformed with the current period presentation.
(c)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(d)
Represents impairment of long-lived assets
related to right of use assets and leasehold improvements.
(e)
Represents items management believes are
not indicative of ongoing operating performance, including legal
and professional fees.
J.Jill, Inc.
Reconciliation of GAAP Net
Income to Adjusted Net Income
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Thirteen Weeks
Ended
August 3, 2024
July 29, 2023
Net income
$
8,191
$
15,222
Add: Income tax provision
3,075
6,665
Income before provision for income tax
11,266
21,887
Adjustments:
Equity-based compensation expense (a)
1,696
937
Write-off of property and equipment
(b)
51
26
Loss on extinguishment of debt (c)
8,570
—
Adjustment for exited retail stores
(d)
(106
)
—
Impairment of long-lived assets (e)
58
45
Other non-recurring items (f)
215
2
Adjusted income before income tax
provision
21,750
22,897
Less: Adjusted tax provision(g)
5,916
6,388
Adjusted net income
$
15,834
$
16,509
Adjusted net income per share:
Basic
$
1.06
$
1.17
Diluted
$
1.05
$
1.15
Weighted average number of common
shares:
Basic
14,906,662
14,158,837
Diluted
15,098,301
14,367,751
(a)
Represents expenses associated with equity
incentive instruments granted to our management and Board of
Directors. Incentive instruments are accounted for as
equity-classified awards with the related compensation expense
recognized based on fair value at the date of the grant. Adjusted
net income for the second quarter of fiscal 2023 has been restated
to include such adjustments to Net income. Beginning fiscal 2024,
equity-based compensation expense is included as an adjustment. The
prior period has been conformed with the current period
presentation.
(b)
Represents net gain or loss on the
disposal of fixed assets. Adjusted net income for the second
quarter of fiscal 2023 has been restated to include such
adjustments to Net income. Beginning fiscal 2024, write-off of
property and equipment is included as an adjustment. The prior
period has been conformed with the current period presentation.
(c)
Represents loss on the prepayment of a
portion of the term loan.
(d)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(e)
Represents impairment of long-lived assets
related to right of use assets and leasehold improvements.
(f)
Represents items management believes are
not indicative of ongoing operating performance, including legal
and professional fees.
(g)
The adjusted tax provision for adjusted
net income is estimated by applying a rate of 27.2% for the second
quarter of fiscal 2024 and 27.9% for the second quarter of fiscal
2023. Adjusted tax provision for the second quarter of fiscal 2023
has been restated to include items (a) and (b) above.
J.Jill, Inc.
Reconciliation of GAAP Net
Income to Adjusted Net Income
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Twenty-Six Weeks
Ended
August 3, 2024
July 29, 2023
Net income
$
24,887
$
19,818
Add: Income tax provision
9,303
8,630
Income before provision for income tax
34,190
28,448
Adjustments:
Equity-based compensation expense (a)
2,950
1,815
Write-off of property and equipment
(b)
57
46
Loss on extinguishment of debt (c)
8,570
—
Loss on debt refinancing(d)
—
12,702
Adjustment for exited retail stores
(e)
(615
)
—
Impairment of long-lived assets (f)
311
45
Other non-recurring items (g)
438
2
Adjusted income before income tax
provision
45,901
43,058
Less: Adjusted tax provision(h)
12,485
12,013
Adjusted net income
$
33,416
$
31,045
Adjusted net income per share:
Basic
$
2.29
$
2.20
Diluted
$
2.27
$
2.16
Weighted average number of common
shares:
Basic
14,581,796
14,111,124
Diluted
14,746,749
14,345,179
(a)
Represents expenses associated with equity
incentive instruments granted to our management and Board of
Directors. Incentive instruments are accounted for as
equity-classified awards with the related compensation expense
recognized based on fair value at the date of the grant. Adjusted
net income for the twenty-six weeks ended July 29, 2023 has been
restated to include such adjustments to Net income. Beginning
fiscal 2024, equity-based compensation expense is included as an
adjustment. The prior period has been conformed with the current
period presentation.
(b)
Represents net gain or loss on the
disposal of fixed assets. Adjusted net income for the twenty-six
weeks ended July 29, 2023 has been restated to include such
adjustments to Net income. Beginning fiscal 2024, write-off of
property and equipment is included as an adjustment. The prior
period has been conformed with the current period presentation.
(c)
Represents loss on the prepayment of a
portion of the term loan.
(d)
Represents loss on the repayment of
priming and subordinated credit agreement.
(e)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(f)
Represents impairment of long-lived assets
related to right of use assets and leasehold improvements.
(g)
Represents items management believes are
not indicative of ongoing operating performance, including legal
and professional fees.
(h)
The adjusted tax provision for adjusted
net income is estimated by applying a rate of 27.2% for the
twenty-six weeks ended August 3, 2024 and 27.9% for the twenty-six
weeks ended July 29, 2023. Adjusted tax provision for the first
quarter of fiscal 2023 has been restated to include items (a) and
(b) above.
J.Jill, Inc.
Selected Cash Flow
Information
(Unaudited)
(Amounts in thousands)
Summary Data from
the Statement of Cash Flows
For the Thirteen Weeks
Ended
August 3, 2024
July 29, 2023
Net cash provided by operating
activities
$
16,381
$
27,756
Net cash used in investing activities
(2,248
)
(4,180
)
Net cash used in financing activities
(62,784
)
(2,564
)
Net change in cash and cash
equivalents
(48,651
)
21,012
Cash and cash equivalents:
Beginning of Period
77,117
27,891
End of Period
$
28,466
$
48,903
For the Twenty-Six Weeks
Ended
August 3, 2024
July 29, 2023
Net cash provided by operating
activities
$
37,880
$
35,615
Net cash used in investing activities
(4,560
)
(7,105
)
Net cash used in financing activities
(67,026
)
(66,660
)
Net change in cash and cash
equivalents
(33,706
)
(38,150
)
Cash and cash equivalents:
Beginning of Period
62,172
87,053
End of Period
$
28,466
$
48,903
Reconciliation of
GAAP Cash from Operations to Free Cash Flow
For the Thirteen Weeks
Ended
August 3, 2024
July 29, 2023
Net cash provided by operating
activities
$
16,381
$
27,756
Less: Capital expenditures (a)
(2,248
)
(4,180
)
Free cash flow
14,133
$
23,576
For the Twenty-Six Weeks
Ended
August 3, 2024
July 29, 2023
Net cash provided by operating
activities
$
37,880
$
35,615
Less: Capital expenditures (a)
(4,560
)
(7,105
)
Free cash flow
33,320
$
28,510
(a)
Capital expenditures reflects net cash
used in investing activities, which includes capitalized interest
and excludes cash received from landlords for tenant
allowances.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240904395571/en/
Investor Relations: Caitlin Churchill ICR, Inc.
investors@jjill.com 203-682-8200
Business and Financial Media: Ariel Kouvaras Sloane &
Company akouvaras@sloanepr.com 973-897-6241
J Jill (NYSE:JILL)
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부터 9월(9) 2024 으로 10월(10) 2024
J Jill (NYSE:JILL)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024