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The Duckhorn Portfolio Announces Fiscal Third Quarter 2024 Financial Results

Net Sales of $92.5 million, up 1.4% year over year;

Net Income of $13.3 million, down 20.7% year over year;

Adjusted EBITDA of $37.7 million, up 5.3% year over year;

Updates Fiscal 2024 Guidance

The Duckhorn Portfolio, Inc. (NYSE: NAPA) (the “Company”) today reported its financial results for the three months ended April 30, 2024.

Third Quarter 2024 Highlights

  • Net sales were $92.5 million, an increase of $1.3 million, or 1.4%, versus the prior year period.
  • Gross profit was $51.4 million, an increase of $0.9 million, or 1.8%, versus the prior year period. Gross profit margin was 55.6%, up 20 basis points versus the prior year period.
  • Net income was $13.3 million, or $0.12 per diluted share, versus $16.8 million, or $0.15 per diluted share, in the prior year period. Adjusted net income was $16.3 million, or $0.14 per diluted share, versus $19.0 million, or $0.16 per diluted share, in the prior year period.
  • Adjusted EBITDA was $37.7 million, an increase of $1.9 million, or 5.3%, and adjusted EBITDA margin was 40.8%, up 150 basis points versus the prior year period.
  • Cash was $15.7 million as of April 30, 2024. The Company’s leverage ratio was 2.1x net debt (net of debt issuance costs) to trailing twelve months adjusted EBITDA.

“Our teams continued to execute against a challenging industry backdrop,” said Deirdre Mahlan, President, CEO and Chairperson. “While top line results were impacted by the softer wine market, our ongoing commitment to operational excellence enabled us to maintain strong performance in the third quarter, with an adjusted EBITDA margin of 40.8%. As we approach the end of the year, we are making substantial progress with the integration of Sonoma-Cutrer, capturing higher than expected cost synergies, and significantly advancing our Route-to-Consumer realignment, which we announced in late May. Looking ahead, we believe the Company is well positioned to deliver sustained profitable growth and long-term shareholder value.”

Third Quarter 2024 Results

 

Three months ended April 30,

 

Nine months ended April 30,

 

2024

 

2023

 

2024

 

2023

Net sales growth (decline)

1.4

%

 

(0.4

)%

 

(1.6

)%

 

2.9

%

Volume contribution

(4.6

)%

 

3.5

%

 

(3.5

)%

 

4.2

%

Price / mix contribution

6.0

%

 

(3.9

)%

 

1.9

%

 

(1.4

)%

 

Three months ended April 30,

 

Nine months ended April 30,

 

2024

 

2023

 

2024

 

2023

Wholesale – Distributors

60.4

%

 

68.6

%

 

66.6

%

 

68.9

%

Wholesale – California direct to trade

16.0

 

 

17.5

 

 

16.9

 

 

17.4

 

DTC

23.6

 

 

13.9

 

 

16.5

 

 

13.7

 

Net sales

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

Net sales were $92.5 million, an increase of $1.3 million, or 1.4%, versus $91.2 million in the prior year period. The increase in net sales was driven primarily by the shift in timing of the DTC Kosta Browne appellation series offering from the fourth quarter in fiscal 2023 to the third quarter in fiscal 2024. Higher price / mix was partially offset by lower shipment volume.

Gross profit was $51.4 million, an increase of $0.9 million, or 1.8%, versus the prior year period. Gross profit margin was 55.6%, improving 20 basis points versus the prior year period as a result of cost of sales improvement.

Total selling, general and administrative expenses were $29.7 million, an increase of $5.8 million, or 24.0%, versus $24.0 million in the prior year period, driven by higher transaction costs related to our acquisition of Sonoma-Cutrer Vineyards. Adjusted selling, general and administrative expenses were $21.0 million, an increase of $0.5 million, or 2%, versus $20.5 million in the prior year period, driven by careful cost controls.

Net income was $13.3 million, or $0.12 per diluted share, versus $16.8 million, or $0.15 per diluted share, in the prior year period. Adjusted net income was $16.3 million, or $0.14 per diluted share, versus $19.0 million, or $0.16 per diluted share, in the prior year period. The decrease in adjusted net income was primarily driven by higher interest, taxes and depreciation expense related to the acquisition of our Geyserville production winery in Fiscal 2023, partially offset by favorable gross profit.

Adjusted EBITDA was $37.7 million, an increase of $1.9 million, or 5.3%, versus $35.8 million in the prior year period. This increase was driven primarily by an improvement in gross margin and cost controls that resulted in slower growth of selling, general and administrative expenses. As a result, adjusted EBITDA margin improved 150 basis points versus the prior year period.

Fiscal Year 2024 Guidance

The Company is updating guidance to the ranges below for Fiscal Year 2024 (which includes sales of Sonoma-Cutrer Vineyards wines in the fourth quarter):

(amounts in millions, except per share data and percentages)

Fiscal year ended July 31, 2024

Net sales (including Sonoma-Cutrer Vineyards net sales)

$398

-

$408

Sonoma-Cutrer Vineyards net sales of approximately

$16

Adjusted EBITDA

$146

-

$150

Adjusted EPS

$0.56

-

$0.58

Diluted share count

123.5

Effective tax rate

27%

-

29%

Conference Call and Webcast

The Company will host a conference call to discuss these results at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time.) Investors interested in participating in the live call can dial 833-470-1428 from the U.S. and 404-975-4839 internationally, and enter confirmation code 799215. A telephone replay will be available approximately two hours after the call concludes through Thursday, June 20, 2024, by dialing 866-813-9403 or 929-458-6194, and entering confirmation code 213170.

There will also be a simultaneous, live webcast available on the Company’s investor relations website at https://ir.duckhorn.com/events-and-presentations. The webcast will be archived for 30 days.

About The Duckhorn Portfolio, Inc.

The Duckhorn Portfolio is North America’s premier luxury wine company, with eleven wineries, ten state-of-the-art winemaking facilities, eight tasting rooms and over 2,200 coveted acres of vineyards spanning 38 Estate properties. Established in 1976, when vintners Dan and Margaret Duckhorn founded Napa Valley’s Duckhorn Vineyards, today, our portfolio features some of North America’s most revered wineries, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer, Kosta Browne, Goldeneye, Paraduxx, Calera, Migration, Postmark, Canvasback and Greenwing. Sourcing grapes from our own Estate vineyards and fine growers in Napa Valley, Sonoma County, Anderson Valley, California’s North and Central coasts, Oregon and Washington State, we offer a curated and comprehensive portfolio of acclaimed luxury wines with price points ranging from $20 to $230 across more than 15 varietals and 39 appellations. Our wines are available throughout the United States, on five continents, and in more than 50 countries around the world. To learn more, visit us at: https://www.duckhornportfolio.com/. Investors can access information on our investor relations website at: https://ir.duckhorn.com.

Use of Non-GAAP Financial Information

In addition to the Company’s results, which are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company believes the following non-GAAP measures presented in this press release and discussed on the related teleconference call are useful in evaluating its operating performance: adjusted gross profit, adjusted selling, general and administrative expenses, adjusted EBITDA, adjusted net income and adjusted EPS. Certain of these non-GAAP measures exclude depreciation and amortization, non-cash equity-based compensation expense, purchase accounting adjustments, casualty losses or gains, impairment losses, inventory write-downs, changes in the fair value of derivatives, and certain other items, net of the tax effects of all such adjustments, which are not related to the Company’s core operating performance. The Company believes that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. The Company’s management team uses these non-GAAP financial measures to evaluate business performance in comparison to budgets, forecasts and prior period financial results. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided herein for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Readers are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

Forward-Looking Statements

This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. For example, all statements The Duckhorn Portfolio makes relating to its estimated and projected financial results or its plans and objectives for future operations, growth initiatives or strategies are forward-looking statements. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to manage the growth of its business; the Company’s reliance on its brand name, reputation and product quality; the effectiveness of the Company’s marketing and advertising programs, including the consumer reception of the launch and expansion of our product offerings; general competitive conditions, including actions the Company’s competitors may take to grow their businesses; overall decline in the health of the economy and the impact of inflation on consumer discretionary spending and consumer demand for wine; the occurrence of severe weather events (including fires, floods and earthquakes), catastrophic health events, natural or man-made disasters, social and political conditions, war or civil unrest; risks associated with disruptions in the Company’s supply chain for grapes and raw and processed materials, including corks, glass bottles, barrels, winemaking additives and agents, water and other supplies; risks associated with the disruption of the delivery of the Company’s wine to customers; disrupted or delayed service by the distributors and government agencies the Company relies on for the distribution of its wines outside of California; the Company’s ability to successfully execute its growth strategy; risks associated with our acquisition of Sonoma-Cutrer Vineyards, Inc.; decreases in the Company’s wine score ratings by wine rating organizations; quarterly and seasonal fluctuations in the Company’s operating results; the Company’s success in retaining or recruiting, or changes required in, its officers, key employees or directors; the Company’s ability to protect its trademarks and other intellectual property rights, including its brand and reputation; the Company’s ability to comply with laws and regulations affecting its business, including those relating to the manufacture, sale and distribution of wine; the risks associated with the legislative, judicial, accounting, regulatory, political and economic risks and conditions specific to both domestic and to international markets; claims, demands and lawsuits to which the Company is, and may in the future, be subject and the risk that its insurance or indemnities coverage may not be sufficient; the Company’s ability to operate, update or implement its IT systems; the Company’s ability to successfully pursue strategic acquisitions and integrate acquired businesses; the Company’s potential ability to obtain additional financing when and if needed; the Company’s substantial indebtedness and its ability to maintain compliance with restrictive covenants in the documents governing such indebtedness; the Company’s largest shareholders’ significant influence over the Company; the potential liquidity and trading of the Company’s securities; the future trading prices of the Company’s common stock and the impact of securities analysts’ reports on these prices; and the risks identified in the Company’s other filings with the SEC. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read the Company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

THE DUCKHORN PORTFOLIO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except shares and per share data)

 

 

April 30, 2024

 

July 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash

$

15,735

 

$

6,353

Accounts receivable trade, net

 

44,893

 

 

48,706

Inventories

 

454,921

 

 

322,227

Prepaid expenses and other current assets

 

6,445

 

 

10,244

Total current assets

 

521,994

 

 

387,530

Property and equipment, net

 

565,806

 

 

323,530

Operating lease right-of-use assets

 

17,189

 

 

20,376

Intangible assets, net

 

195,557

 

 

184,227

Goodwill

 

483,818

 

 

425,209

Other assets

 

9,100

 

 

6,810

Total assets

$

1,793,464

 

$

1,347,682

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

5,344

 

$

4,829

Accrued expenses

 

30,915

 

 

38,246

Accrued compensation

 

10,802

 

 

16,460

Current maturities of long-term debt

 

9,721

 

 

9,721

Due to related party

 

1,730

 

 

Other current liabilities

 

5,990

 

 

5,204

Total current liabilities

 

64,502

 

 

74,460

Revolving line of credit

 

102,000

 

 

13,000

Long-term debt, net of current maturities and debt issuance costs

 

203,206

 

 

210,619

Operating lease liabilities

 

13,398

 

 

16,534

Deferred income taxes

 

151,175

 

 

90,216

Other liabilities

 

647

 

 

445

Total liabilities

 

534,928

 

 

405,274

Stockholders’ equity:

 

 

 

Common stock, $0.01 par value; 500,000,000 shares authorized; 147,048,822 and 115,316,308 issued and outstanding at April 30, 2024 and July 31, 2023, respectively

 

1,470

 

 

1,153

Additional paid-in capital

 

1,008,643

 

 

737,557

Retained earnings

 

247,839

 

 

203,122

Total The Duckhorn Portfolio, Inc. stockholders’ equity

 

1,257,952

 

 

941,832

Non-controlling interest

 

584

 

 

576

Total stockholders’ equity

 

1,258,536

 

 

942,408

Total liabilities and stockholders’ equity

$

1,793,464

 

$

1,347,682

THE DUCKHORN PORTFOLIO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except shares and per share data)

 

 

Three months ended April 30,

 

Nine months ended April 30,

 

2024

 

2023

 

2024

 

2023

Net sales (net of excise taxes of $1,114, $1,126, $3,915 and $4,179, respectively)

$

92,532

 

 

$

91,242

 

$

298,086

 

 

$

302,901

Cost of sales

 

41,089

 

 

 

40,731

 

 

134,472

 

 

 

142,494

Gross profit

 

51,443

 

 

 

50,511

 

 

163,614

 

 

 

160,407

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

29,739

 

 

 

23,989

 

 

89,469

 

 

 

79,307

Income from operations

 

21,704

 

 

 

26,522

 

 

74,145

 

 

 

81,100

 

 

 

 

 

 

 

 

Interest expense

 

4,531

 

 

 

2,993

 

 

13,035

 

 

 

7,839

Other (income) expense, net

 

(3,054

)

 

 

729

 

 

(2,171

)

 

 

3,385

Total other expenses, net

 

1,477

 

 

 

3,722

 

 

10,864

 

 

 

11,224

Income before income taxes

 

20,227

 

 

 

22,800

 

 

63,281

 

 

 

69,876

Income tax expense

 

6,906

 

 

 

6,006

 

 

18,556

 

 

 

18,358

Net income

 

13,321

 

 

 

16,794

 

 

44,725

 

 

 

51,518

Net loss (income) attributable to non-controlling interest

 

2

 

 

 

3

 

 

(8

)

 

 

11

Net income attributable to The Duckhorn Portfolio, Inc.

$

13,323

 

 

$

16,797

 

$

44,717

 

 

$

51,529

 

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

Basic

$

0.12

 

 

$

0.15

 

$

0.39

 

 

$

0.45

Diluted

$

0.12

 

 

$

0.15

 

$

0.39

 

 

$

0.45

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

Basic

 

115,804,326

 

 

 

115,255,671

 

 

115,504,766

 

 

 

115,209,972

Diluted

 

115,834,119

 

 

 

115,367,455

 

 

115,627,182

 

 

 

115,425,034

THE DUCKHORN PORTFOLIO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

Nine months ended April 30,

 

2024

 

2023

Cash flows from operating activities

 

 

 

Net income

$

44,725

 

 

$

51,518

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

Depreciation and amortization

 

26,698

 

 

 

20,528

 

(Gain) loss on disposal of assets

 

(19

)

 

 

75

 

Change in fair value of derivatives

 

(1,717

)

 

 

2,943

 

Amortization of debt issuance costs

 

582

 

 

 

774

 

Equity-based compensation

 

4,960

 

 

 

4,741

 

Change in operating assets and liabilities; net of acquisition:

 

 

 

Accounts receivable trade, net

 

3,813

 

 

 

(6,248

)

Inventories

 

(68,694

)

 

 

(39,278

)

Prepaid expenses and other current assets

 

4,101

 

 

 

1,633

 

Other assets

 

(753

)

 

 

(508

)

Accounts payable

 

(743

)

 

 

(352

)

Accrued expenses

 

(5,642

)

 

 

3,681

 

Accrued compensation

 

(5,934

)

 

 

(831

)

Deferred revenue

 

1,008

 

 

 

12,884

 

Other current and non-current liabilities

 

(2,794

)

 

 

193

 

Net cash (used in) provided by operating activities

 

(409

)

 

 

51,753

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment, net of sales proceeds

 

(21,466

)

 

 

(14,111

)

Acquisition of business, net of cash acquired

 

(49,614

)

 

 

 

Net cash used in investing activities

 

(71,080

)

 

 

(14,111

)

Cash flows from financing activities

 

 

 

Payments under line of credit

 

(29,000

)

 

 

(119,000

)

Borrowings under line of credit

 

118,000

 

 

 

9,000

 

Issuance of long-term debt

 

 

 

 

225,833

 

Payments of long-term debt

 

(7,500

)

 

 

(117,666

)

Proceeds from employee stock purchase plan

 

119

 

 

 

181

 

Taxes paid related to net share settlement of equity awards

 

(630

)

 

 

(648

)

Payment of equity issuance costs

 

(118

)

 

 

 

Payments for debt issuance costs

 

 

 

 

(2,432

)

Net cash provided by (used in) financing activities

 

80,871

 

 

 

(4,732

)

Net increase in cash

 

9,382

 

 

 

32,910

 

Cash - Beginning of period

 

6,353

 

 

 

3,167

 

Cash - End of period

$

15,735

 

 

$

36,077

 

 

 

 

 

Supplemental cash flow information

 

 

 

Interest paid, net of amount capitalized

$

12,944

 

 

$

4,421

 

Income taxes paid

$

28,053

 

 

$

10,921

 

Non-cash investing and financing activities

 

 

 

Property and equipment additions in accounts payable and accrued expenses

$

400

 

 

$

332

 

Consideration payable for the acquisition of Sonoma-Cutrer Vineyards

$

778

 

 

$

 

Value of shares issued related to the acquisition of Sonoma-Cutrer

$

267,072

 

 

$

 

THE DUCKHORN PORTFOLIO, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted gross profit, adjusted selling, general and administrative expenses, adjusted net income, adjusted EBITDA and adjusted EPS, collectively referred to as “Non-GAAP Financial Measures,” are commonly used in the Company’s industry and should not be construed as an alternative to net income or earnings per share as indicators of operating performance (as determined in accordance with GAAP). These Non-GAAP Financial Measures may not be comparable to similarly titled measures reported by other companies. The Company has included these Non-GAAP Financial Measures because it believes the measures provide management and investors with additional information to evaluate business performance in comparison to budgets, forecasts and prior year financial results.

Non-GAAP Financial Measures are adjusted to exclude certain items that affect comparability. The adjustments are itemized in the tables below. You are encouraged to evaluate these adjustments and the reason the Company considers them appropriate for supplemental analysis. In evaluating adjustments, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments set forth below. The presentation of Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or recurring items.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that the Company calculates as net income before interest, taxes, depreciation and amortization, non-cash equity-based compensation expense, purchase accounting adjustments, transaction expenses, acquisition integration expenses, changes in the fair value of derivatives and certain other items which are not related to our core operating performance. Adjusted EBITDA is a key performance measure the Company uses in evaluating its operational results. The Company believes adjusted EBITDA is a helpful measure to provide investors an understanding of how management regularly monitors the Company’s core operating performance, as well as how management makes operational and strategic decisions in allocating resources. The Company believes adjusted EBITDA also provides management and investors consistency and comparability with the Company’s past financial performance and facilitates period to period comparisons of operations, as it eliminates the effects of certain variations unrelated to its overall performance.

Adjusted EBITDA has certain limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of these limitations include:

  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
  • adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
  • adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debt;
  • adjusted EBITDA does not reflect income tax payments that may represent a reduction in cash available to the Company; and
  • other companies, including companies in the Company’s industry, may calculate adjusted EBITDA differently, which reduce their usefulness as comparative measures.

Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures, including net income and the Company’s other GAAP results. In evaluating adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of adjusted EBITDA should not be construed as an inference that the Company’s future results will be unaffected by the types of items excluded from the calculation of adjusted EBITDA.

Adjusted Gross Profit

Adjusted gross profit is a non-GAAP financial measure that the Company calculates as gross profit excluding the impact of purchase accounting adjustments (including depreciation and amortization related to purchase accounting), non-cash equity-based compensation expense, and certain inventory charges. We believe adjusted gross profit is a useful measure to us and our investors to assist in evaluating our operating performance because it provides consistency and direct comparability with our past financial performance between fiscal periods, as the metric eliminates the effects of non-cash or other expenses unrelated to our core operating performance that would result in fluctuations in a given metric for reasons unrelated to overall continuing operating performance. Adjusted gross profit should not be considered a substitute for gross profit or any other measure of financial performance reported in accordance with GAAP.

Adjusted Net Income and Adjusted Selling, General and Administrative Expenses

Adjusted net income is a non-GAAP financial measure that the Company calculates as net income excluding the impact of non-cash equity-based compensation expense, purchase accounting adjustments, transaction expenses, acquisition integration expenses, changes in the fair value of derivatives and certain other items unrelated to core operating performance, as well as the estimated income tax impacts of all such adjustments included in this non-GAAP performance measure. We believe adjusted net income assists us and our investors in evaluating our performance period-over-period. In calculating adjusted net income, we also calculate the following non-GAAP financial measures which adjust each GAAP-based financial measure for the relevant portion of each adjustment to reach adjusted net income:

  • Adjusted SG&A – calculated as selling, general, and administrative expenses excluding the impacts of purchase accounting, transaction expenses, acquisition integration expenses, equity-based compensation; and
  • Adjusted income tax – calculated as the tax effect of all adjustments to reach adjusted net income based on the applicable blended statutory tax rate for the period.

Adjusted net income should not be considered a substitute for net income or any other measure of financial performance reported in accordance with GAAP.

Adjusted EPS

Adjusted EPS is a non-GAAP financial measure that the Company calculates as adjusted net income divided by diluted share count for the applicable period. We believe adjusted EPS is useful to us and our investors because it improves the comparability of results of operations from period to period. Adjusted EPS should not be considered a substitute for net income per share or any other measure of financial performance reported in accordance with GAAP.

THE DUCKHORN PORTFOLIO, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except per share data)

 

 

Three months ended April 30, 2024

 

Net

sales

 

Gross

profit

 

SG&A

 

Adjusted

EBITDA

 

Income

tax

 

Net

income

 

Diluted

EPS

GAAP results

$

92,532

 

 

$

51,443

 

 

$

29,739

 

 

$

13,323

 

 

$

6,906

 

 

$

13,323

 

 

$

0.12

 

Percentage of net sales

 

 

 

55.6

%

 

 

32.1

%

 

 

14.4

%

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

4,531

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

6,906

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

 

95

 

 

 

(2,352

)

 

 

9,661

 

 

 

 

 

 

 

EBITDA

 

 

 

 

 

 

$

34,421

 

 

 

 

 

 

 

Purchase accounting adjustments

 

 

 

11

 

 

 

 

 

11

 

 

 

4

 

 

 

7

 

 

 

 

Transaction expenses

 

 

 

 

 

(4,229

)

 

 

4,229

 

 

 

720

 

 

 

3,509

 

 

 

0.03

 

Acquisition integration costs

 

 

 

 

 

(616

)

 

 

616

 

 

 

210

 

 

 

406

 

 

 

 

Change in fair value of derivatives

 

 

 

 

 

 

 

(2,975

)

 

 

(1,014

)

 

 

(1,961

)

 

 

(0.02

)

Equity-based compensation

 

 

 

184

 

 

 

(1,283

)

 

 

1,467

 

 

 

445

 

 

 

1,022

 

 

 

0.01

 

Lease income, net

 

(322

)

 

 

(322

)

 

 

(279

)

 

 

(43

)

 

 

(15

)

 

 

(28

)

 

 

 

Non-GAAP results

$

92,210

 

 

$

51,411

 

 

$

20,980

 

 

$

37,726

 

 

$

7,256

 

 

$

16,278

 

 

$

0.14

 

Percentage of net sales

 

 

 

55.6

%

 

 

22.7

%

 

 

40.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended April 30, 2023

 

Net

sales

 

Gross

profit

 

SG&A

 

Adjusted

EBITDA

 

Income

tax

 

Net

income

 

Diluted

EPS

GAAP results

$

91,242

 

 

$

50,511

 

 

$

23,989

 

 

$

16,797

 

 

$

6,006

 

 

$

16,797

 

 

$

0.15

 

Percentage of net sales

 

 

 

55.4

%

 

 

26.3

%

 

 

18.4

%

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

2,993

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

6,006

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

 

108

 

 

 

(1,903

)

 

 

7,238

 

 

 

 

 

 

 

EBITDA

 

 

 

 

 

 

$

33,034

 

 

 

 

 

 

 

Purchase accounting adjustments

 

 

 

224

 

 

 

 

 

224

 

 

 

59

 

 

 

165

 

 

 

 

Transaction expenses

 

 

 

 

 

(142

)

 

 

142

 

 

 

(60

)

 

 

202

 

 

 

 

Change in fair value of derivatives

 

 

 

 

 

 

 

882

 

 

 

232

 

 

 

650

 

 

 

0.01

 

Equity-based compensation

 

 

 

111

 

 

 

(1,427

)

 

 

1,538

 

 

 

345

 

 

 

1,193

 

 

 

0.01

 

Non-GAAP results

$

91,242

 

 

$

50,954

 

 

$

20,517

 

 

$

35,820

 

 

$

6,582

 

 

$

19,007

 

 

$

0.16

 

Percentage of net sales

 

 

 

55.8

%

 

 

22.5

%

 

 

39.3

%

 

 

 

 

 

 

 

Note: Sum of individual amounts may not recalculate due to rounding.

 

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