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Press Release: Leslie's, Inc. Announces Record -3-

· 02/04/2021 16:05
-------------------- ---------------------- In thousands January 2, 2021 December 28, 2019 ----------------------- -------------------- ---------------------- Operating activities Net loss $ (30,257) $ (26,187) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,595 7,276 Equity-based compensation 12,160 598 Amortization of deferred financing costs and debt discounts 648 848 Provision for doubtful accounts 59 57 Loss on extinguishment of debt 7,281 - Deferred income taxes (8,146) 2,672 Loss on disposition of assets (1,758) 443 Changes in operating assets and liabilities: Accounts and other receivables (5,694) (15,842) Inventories (25,569) (34,402) Prepaid expenses and other current assets (5,285) 1,502 Other assets 127 75 Accounts payable and accrued expenses (65,629) (21,922) Income taxes payable (1,857) (6,713) Operating lease assets and liabilities, net (1,969) 10,339 Net cash used in operating activities (119,294) (81,256) ----------------------- --------------- -------------- Investing activities Purchases of property and equipment (2,706) (5,738) Acquisitions, net of cash acquired - (6,188) Proceeds from dispositions of fixed assets 2,404 6 Net cash used in investing activities (302) (11,920) ----------------------- --------------- -------------- Financing activities Borrowings on revolving commitment - 6,300 Repayment of Senior Notes (390,000) - Principal payments on Term Loan (2,085) (2,085) Proceeds from issuance of common stock upon initial public offering, net of offering costs 458,686 - Net cash provided by financing activities 66,601 4,215 ----------------------- --------------- -------------- Net decrease in cash and cash equivalents (52,995) (88,961) Cash and cash equivalents, beginning of period 157,072 90,899 Cash and cash equivalents, end of period $ 104,077 $ 1,938 ----------------------- --------------- -------------- GAAP to Non-GAAP Reconciliation (unaudited) Three Months Ended Three Months Ended ---------------------- ---------------------- In thousands, except per share amounts January 2, 2021 December 28, 2019 ---------------------- ---------------------- ---------------------- Net loss $ (30,257) $ (26,187) Interest expense 11,516 22,417 Income tax benefit (14,314) (15,010) Depreciation and amortization expenses (a) 6,595 7,276 (Gain) loss on disposition of assets (b) (1,758) 443 Management fee (c) 382 1,322 Equity-based compensation expense (d) 12,160 598 Mark-to-market on interest rate cap (e) - 22 Loss on debt extinguishment (f) 7,281 - Other (g) 8,152 115 Adjusted EBITDA $ (243) $ (9,004) ----------------------- -------------- -------------- Net loss $ (30,257) $ (26,187) (Gain) loss on disposition of assets (b) (1,758) 443 Management fee (c) 382 1,322 Equity-based compensation expense (d) 12,160 598 Mark-to-market on interest rate cap (e) - 22 Loss on debt extinguishment (f) 7,281 - Other (g) 8,152 115 Tax effects of these adjustments (h) (6,579) (627) Adjusted net loss $ (10,619) $ (24,314) ----------------------- -------------- -------------- Adjusted net loss per share Basic and diluted $ (0.06) $ (0.16) Weighted average shares outstanding Basic and diluted 176,990 156,500 (a) Includes depreciation related to our distribution centers and stores which is included within the cost of merchandise and services sold line item in our condensed consolidated statements of operations. (b) Consists of loss on disposition of assets associated with store closures or the sale of property and equipment. (c) Represents amounts paid or accrued in connection with our management services agreement. The management services agreement terminated upon the completion of our IPO. (d) Represents non-cash charges related to equity-based compensation. (e) Includes non-cash charges related to the change in fair value of our interest rate cap agreements. (f) Represents non-cash expense due to the write-off of deferred financing costs related to the repayment of our senior unsecured floating rate notes due 2024 during the first quarter of fiscal year 2021. (g) Other non-recurring, non-cash or discrete items as determined by management, such as transaction related costs, personnel-related costs, legal expenses, strategic project costs, and miscellaneous costs. The first quarter of fiscal 2021 includes one-time payments of contractual amounts incurred in connection with our IPO. (h) Represents the tax effect of the total adjustments based on our actual statutory tax rate for fiscal year 2020 and our estimated statutory tax rate for fiscal year 2021.

(END) Dow Jones Newswires

February 04, 2021 16:05 ET (21:05 GMT)