Total Revenues Increased 34.6% Year-over-Year for the Fourth Quarter and
57.2% Year-over-Year for the Full Year 2022
131
617 System-Wide Stores at Year-End
11.3 Million Registered Loyalty Club Members at Year-End,
Representing 88.5% Year-over-Year Growth
Adjusted Store EBITDA Margin Increased 0.
Continued Recovery: 17.1% Same-store Sales Growth for Company Owned and Operated Stores in
FOURTH QUARTER 2022 HIGHLIGHTS
- Total revenues were
RMB301.5 million (USD43.7 million ), representing a 34.6% increase from the same quarter of 2021. - Net new store openings totaled 131 (93 company owned and operated stores and 38 franchised stores).
- Adjusted store EBITDA1 was
RMB12.8 million (USD1.9 million ), representing a 45.7% increase from the same quarter of 2021. - Adjusted store EBITDA margin2 was 4.7%, representing an increase of 0.6 percentage points from the same quarter of 2021.
_________________________
1 Adjusted store EBITDA is calculated as fully-burdened gross profit3 of company owned and operated stores excluding depreciation & amortization and store pre-opening expenses.
2 Adjusted store EBITDA margin is calculated as adjusted store EBITDA as a percentage of revenues from company owned and operated stores.
3 Fully-burdened gross profit of company owned and operated stores, the most comparable GAAP measure to adjusted store EBITDA, was a loss of
FULL YEAR 2022 HIGHLIGHTS
- Total revenues were
RMB1,011.1 million (USD146.6 million ), representing a 57.2% increase from 2021. - Net new store openings totaled 227 (174 company owned and operated stores and 53 franchised stores) in 2022, reaching 617 total stores at year-end (547 company owned and operated stores and 70 franchised stores).
- Registered loyalty club members totaled 11.3 million as of
December 31, 2022 , representing an 88.5% increase from 2021.
COMPANY MANAGEMENT STATEMENT
Mr.
Mr.
IMPACT OF COVID-19 AND RELATED EFFORTS
During the fourth quarter of 2022, our business operations were severely affected due to the resurgence of the pandemic and multiple rounds of lockdowns across major cities in the PRC. In December, the PRC government significantly changed its COVID policies, including removal of mass testing and central quarantine requirements, as well as lifting of travel restrictions. A significant wave of infections occurred and many chose to stay at home. As a result, dine-in traffic declined substantially. In the fourth quarter of 2022, we also experienced approximately 48 daily temporary store closures on average, over twice as many compared to approximately 23 daily temporary store closures on average in the third quarter of 2022.
To cope with and to adapt to challenges from the pandemic, we continued to focus on our digital capabilities in order to capture the growing demand from delivery and takeaway services. As a result, the number of delivery and takeaway orders increased by 47.3% from the fourth quarter of 2021 to the fourth quarter of 2022.
Following the easing of pandemic-related measures, we have gradually resumed normal operations and the overall business environment and consumer sentiment have dramatically improved. This recovery is well demonstrated in our same-store sales performance, which reached 17.1% in
FOURTH QUARTER 2022 FINANCIAL RESULTS
Total revenues reached
- Revenues from company owned and operated stores were
RMB272.5 million (USD39.5 million ) for the three months ended December 31, 2022, representing an increase of 27.5% fromRMB213.7 million in the same quarter of 2021. The growth was primarily driven by an increase in the number of company owned and operated stores from 373 as ofDecember 31, 2021 to 547 as ofDecember 31, 2022 , offset by negative 7.1% same-store sales growth of company owned and operated stores for the three months endedDecember 31, 2022 . - Other revenues were
RMB29.0 million (USD4.2 million ) for the three months endedDecember 31, 2022 , representing an increase of 180.7% fromRMB10.3 million in the same quarter of 2021. The growth was primarily attributable to the rapid expansion of our e-commerce business and an increase in franchise fees and revenues from other franchise support activities, which was attributable to an increase in the number of franchised stores from 17 as ofDecember 31, 2021 to 70 as ofDecember 31, 2022 .
Company operated store costs and expenses were
- Food and packaging expenses were
RMB89.5 million (USD13.0 million ), representing an increase of 25.0% fromRMB71.6 million , in line with our revenue growth and store network expansion. Food and packaging costs as a percentage of revenues from company owned and operated stores decreased by 0.7 percentage points from 33.5% in the fourth quarter of 2021 to 32.8% in the fourth quarter of 2022. - Rental and property management fee were
RMB75.9 million (USD11.0 million ), representing an increase of 35.2% fromRMB56.2 million , mainly due to the increase in the number of company owned and operated stores from 373 as ofDecember 31, 2021 to 547 as ofDecember 31, 2022 . Accordingly, rental and property management fee as a percentage of revenues from company owned and operated stores increased by 1.6 percentage points from 26.3% in the fourth quarter of 2021 to 27.9% in the fourth quarter of 2022. - Payroll and employee benefitsexpenses were
RMB66.7 million (USD9.7 million ), representing a decrease of 7.1% fromRMB71.8 million , primarily due to refined staffing arrangement of our store operation personnel and optimization of our labor structure, including hiring more part-time employees, during the fourth quarter of 2022. Payroll and employee benefits as a percentage of revenues from company owned and operated stores decreased by 9.1 percentage points from 33.6% in the fourth quarter of 2021 to 24.5% in the fourth quarter of 2022. - Delivery costs were
RMB21.9 million (USD3.2 million ), representing an increase of 57.4% fromRMB13.9 million , due to increased home-delivery orders. Delivery costs as a percentage of revenues from company owned and operated stores increased by 1.5 percentage points from 6.5% in the fourth quarter of 2021 to 8.0% in the fourth quarter of 2022. - Other operating expenses were
RMB23.1 million (USD3.4 million ), representing a decrease of 17.4% fromRMB28.0 million , due to our continuous efforts to optimize our cost structure and drive operating leverage through revenue growth and store network expansion. Other operating expenses as a percentage of revenues from company owned and operated stores decreased by 4.6 percentage points from 13.1% in the fourth quarter of 2021 to 8.5% in the fourth quarter of 2022. - Store depreciation and amortization were
RMB33.5 million (USD4.9 million ), representing an increase of 59.8% fromRMB21.0 million , driven by an increase in the number of company owned and operated stores from 373 as ofDecember 31, 2021 to 547 as ofDecember 31, 2022 . Store depreciation and amortization as a percentage of revenues from company owned and operated stores increased by 2.5 percentage points from 9.8% in the fourth quarter of 2021 to 12.3% in the fourth quarter of 2022.
Cost of other revenues was
Marketing expenses were
General and administrative expenses were
Franchise and royalty expenses were
As a result of the foregoing, operating loss was
Adjusted Corporate EBITDA was a loss of
Net loss was
Basic and diluted net loss per ordinary share was
Liquidity
As of
KEY OPERATING DATA
For the three months ended or as of | |||||||||||||||
2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | ||||||||
Total stores | 159 | 217 | 280 | 390 | 424 | 440 | 486 | 617 | |||||||
Company owned and operated stores | 150 | 206 | 268 | 373 | 403 | 419 | 454 | 547 | |||||||
Franchised stores | 9 | 11 | 12 | 17 | 21 | 21 | 32 | 70 | |||||||
Same-store sales growth for system-wide stores | 41.6% | 26.5% | 6.5% | 8.2% | 4.4% | -6.1% | 8.1% | -8.0% | |||||||
Same-store sales growth for company owned and operated stores | 40.3% | 25.5% | 6.6% | 8.8% | 5.5% | -5.3% | 7.5% | -7.1% | |||||||
Registered loyalty club members (in thousands) | 2,947 | 3,865 | 4,770 | 5,969 | 6,907 | 7,532 | 8,862 | 11,250 | |||||||
Adjusted store EBITDA (Renminbi in thousands) (Note*) | -1,834 | 7,545 | 5,285 | 8,780 | -25,011 | -43,787 | 15,325 | 12,796 | |||||||
Adjusted store EBITDA margin (Note*) | -1.8% | 5.8% | 3.0% | 4.1% | -11.9% | -26.6% | 5.3% | 4.7% |
Note* The Company has revised its previously announced adjusted store EBITDA and adjusted store EBITDA margin to more accurately account for store depreciation and amortization and franchise and royalty expenses for company owned and operated stores. Please refer to “RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES – A. Adjusted store EBITDA and adjusted store EBITDA margin” for more information.
KEY DEFINITIONS
- Same-store sales growth. The percentage change in the sales of stores that have been operating for 12 months or longer during a certain period compared to the same period from the prior year. The same-store sales growth for any period of more than a month equals to the arithmetic average of the same-store sales growth of each month covered in the period. If a store was closed for seven days or more during any given month, its sales during that month and the same month in the comparison period are excluded for purposes of measuring same-store sales growth.
- Net new store openings. The gross number of new stores opened during the period minus the number of stores permanently closed during the period.
- Adjusted store EBITDA. Calculated as fully-burdened gross profit of company owned and operated stores excluding depreciation and amortization, and store pre-opening expenses.
- Adjusted store EBITDA margin. Calculated as adjusted store EBITDA as a percentage of revenues from company owned and operated stores.
- Adjusted general and administrative expenses. Calculated as general and administrative expenses excluding share-based compensation expenses, expenses related to the issuance of certain ordinary shares to
CF Principal Investments LLC inNovember 2022 (the “Commitment Shares”), offering costs related to theESA (the “ESA Offering Costs”), and expenses related to 200,000 of our ordinary shares that may be purchased from our controlling shareholder by a holder of our convertible notes at its option pursuant to the terms of an Option Agreement datedSeptember 28, 2022 (the “Option Shares”). - Adjusted corporate EBITDA. Calculated as operating loss excluding store pre-opening expenses, and certain non-cash expenses consisting of depreciation and amortization, share-based compensation expenses, expenses related to the Commitment Shares, the ESA Offering Costs, expenses related to the Option Shares, impairment losses of long-lived assets and loss on disposal of property and equipment.
- Adjusted corporate EBITDA margin. Calculated as adjusted corporate EBITDA as a percentage of total revenues.
- Adjusted net loss. Calculated as net loss excluding store pre-opening expenses, share-based compensation expenses, expenses related to the Commitment Shares, the ESA Offering Costs, expenses related to the Option Shares, impairment losses of long-lived assets, loss on disposal of property and equipment, changes in fair value of convertible notes, changes in fair value of warrant liabilities; and changes in fair value of
ESA derivative liabilities. - Adjusted net loss margin. Calculated as adjusted net loss as a percentage of total revenues.
- Adjusted basic and diluted net loss per ordinary share. Calculated as adjusted net loss attributable to the Company’s ordinary shareholders divided by weighted-average number of basic and diluted ordinary share.
RECENT BUSINESS DEVELOPMENTS
- On
January 17, 2023 ,Tims China celebrated the opening its 600th coffee shop, a milestone achieved in late 2022. The 600th store is located in Zhongshan inGuangdong province, part of Tims China’sPearl River Delta cluster, which includesShenzhen andGuangzhou . - On
February 8, 2023 ,Tims China announced that its board of directors had approved the entry into a transaction for the exclusive rights to develop and sub-franchisePopeyes , another iconic brand owned byRestaurant Brands International and one of the world’s largest chicken quick-service restaurant groups with over 3,900 locations globally, in mainland China andMacau . The transaction was closed onMarch 30, 2023 and is expected to bring significant operational and development synergies and further growth potential toTims China .
USE OF NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures, namely adjusted store EBITDA, adjusted store EBITDA margin, adjusted general and administrative expenses, adjusted corporate EBITDA, adjusted corporate EBITDA margin, adjusted net loss, adjusted net loss margin, and adjusted basic and diluted net loss per ordinary share in evaluating its operating results and for financial and operational decision-making purposes. The Company defines (i) adjusted store EBITDA as fully-burdened gross profit of company owned and operated stores excluding depreciation and amortization, and store pre-opening expenses; (ii) adjusted store EBITDA margin as adjusted store EBITDA as a percentage of revenues from company owned and operated stores; (iii) adjusted general and administrative expenses as general and administrative expenses excluding share-based compensation expenses, expenses related to the Commitment Shares, the ESA Offering Costs, and expenses related to the Option Shares; (iv) adjusted corporate EBITDA as operating loss excluding store pre-opening expenses, and certain non-cash expenses consisting of depreciation and amortization, share-based compensation expenses, expenses related to the Commitment Shares, the ESA Offering Costs, expenses related to the Option Shares, impairment losses of long-lived assets and loss on disposal of property and equipment; (v) adjusted corporate EBITDA margin as adjusted corporate EBITDA as a percentage of total revenues; (vi) adjusted net loss as net loss excluding store pre-opening expenses, share-based compensation expenses, expenses related to the Commitment Shares, the ESA Offering Costs, expenses related to the Option Shares, impairment losses of long-lived assets, loss on disposal of property and equipment, changes in fair value of convertible notes, changes in fair value of warrant liabilities; and changes in fair value of
These non-GAAP financial measures are not defined under
EXCHANGE RATE INFORMATION
This press release contains translations of certain RMB amounts into
PRE-RECORDED PRESENTATION
The Company will host a pre-recorded presentation that will be available beginning at
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future commercial operations, such as the continued expansion of its store network and growth of its loyalty club members, and its ability to grow customer recognition, brand awareness and loyalty, the potential benefits of the
STATEMENT REGARDING PRELIMINARY UNAUDITED FINANCIAL INFORMATION
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information. Accordingly, you should not place undue reliance upon these preliminary estimates. The preliminary unaudited financial information included in this press release has been prepared by, and is the responsibility of, the Company’s management. The Company’s auditor has not audited, reviewed, compiled or applied agreed-upon procedures with respect to such preliminary financial data. Accordingly, the Company’s auditor does not express an opinion or any other form of assurance with respect thereto. Upon completion of the year-end audit, the Company’s audited financial results may differ materially from its preliminary estimates.
ABOUT TH INTERNATIONAL LIMITED
INVESTOR AND MEDIA CONTACTS
Investor Relations
IR@timschina.com
TimsChinaIR@icrinc.com
Public Relations
TimsChinaPR@icrinc.com
TH INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Amounts in thousands of RMB and US$, except for number of shares) | ||||||||
As of | ||||||||
December 31,2022 | ||||||||
RMB | RMB | US$ | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | 390,837 | 239,077 | 34,663 | |||||
Short term investment | - | 372,376 | 53,989 | |||||
Accounts receivable, net | 9,817 | 5,617 | 814 | |||||
Inventories | 42,479 | 71,468 | 10,362 | |||||
Prepaid expenses and other current assets | 142,839 | 108,275 | 15,699 | |||||
Total current assets | 585,972 | 796,813 | 115,527 | |||||
Non-current assets | ||||||||
Property and equipment, net | 554,015 | 720,036 | 104,395 | |||||
Intangible assets, net | 77,594 | 96,018 | 13,921 | |||||
Operating lease right-of-use assets | - | 946,873 | 137,284 | |||||
Other non-current assets | 67,312 | 82,270 | 11,928 | |||||
Total non-current assets | 698,921 | 1,845,197 | 267,528 | |||||
Total assets | 1,284,893 | 2,642,010 | 383,055 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Short-term bank borrowings | 192,055 | 407,807 | 59,127 | |||||
Accounts payable | 60,952 | 105,673 | 15,321 | |||||
Contract liabilities | 14,129 | 22,122 | 3,207 | |||||
Amount due to related parties | 14,074 | 22,485 | 3,260 | |||||
Derivative financial liabilities | - | 269,251 | 39,038 | |||||
Lease liability-current | - | 180,468 | 26,165 | |||||
Other current liabilities | 286,080 | 310,456 | 45,012 | |||||
Total current liabilities | 567,290 | 1,318,262 | 191,130 | |||||
Non-current liabilities | ||||||||
Long-term bank borrowings | 11,903 | 8,800 | 1,276 | |||||
Convertible notes, at fair value | 318,466 | 354,080 | 51,337 | |||||
Contract liabilities - non-current | 970 | 3,311 | 480 | |||||
Derivative financial liabilities - non-current | - | 19,083 | 2,767 | |||||
Lease liability-non-current | - | 820,249 | 118,925 | |||||
Other non-current liabilities | 47,169 | 7,921 | 1,147 | |||||
Total non-current liabilities | 378,508 | 1,213,444 | 175,932 | |||||
Total liabilities | 945,798 | 2,531,706 | 367,062 | |||||
Shareholders’ equity | ||||||||
Ordinary Shares ( | 7 | 9 | 1 | |||||
Additional paid-in capital | 937,315 | 1,472,015 | 213,422 | |||||
Accumulated losses | (637,528 | ) | (1,380,173 | ) | (200,106 | ) | ||
Accumulated other comprehensive income | 35,744 | 16,999 | 2,465 | |||||
- | - | - | ||||||
Total equity attributable to shareholders of the Company | 335,538 | 108,850 | 15,782 | |||||
Non-controlling interests | 3,557 | 1,454 | 211 | |||||
Total shareholders’ equity | 339,095 | 110,304 | 15,993 | |||||
Commitments and Contingencies | - | - | - | |||||
Total liabilities and shareholders’ equity | 1,284,893 | 2,642,010 | 383,055 | |||||
TH INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) | ||||||||||||||||||
(Amounts in thousands of RMB and US$, except for per share data) | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Revenues | ||||||||||||||||||
Company owned and operated stores | 213,653 | 272,509 | 39,510 | 617,226 | 938,097 | 136,011 | ||||||||||||
Other revenues | 10,322 | 28,972 | 4,201 | 26,146 | 72,967 | 10,579 | ||||||||||||
Total revenues | 223,975 | 301,481 | 43,711 | 643,372 | 1,011,064 | 146,590 | ||||||||||||
Costs and expenses, net | ||||||||||||||||||
Company owned and operated stores | ||||||||||||||||||
Food and packaging (including cost of Company owned and operated stores from transactions with a related party of | 71,596 | 89,480 | 12,973 | 207,948 | 314,550 | 45,606 | ||||||||||||
Rental and property management fee | 56,160 | 75,939 | 11,010 | 148,152 | 236,838 | 34,338 | ||||||||||||
Payroll and employee benefits | 71,828 | 66,699 | 9,670 | 199,330 | 268,857 | 38,981 | ||||||||||||
Delivery costs | 13,926 | 21,917 | 3,178 | 38,604 | 73,616 | 10,673 | ||||||||||||
Other operating expenses (including service fee from transactions with a related party of | 27,962 | 23,106 | 3,350 | 99,105 | 107,770 | 15,625 | ||||||||||||
Store depreciation and amortization | 20,986 | 33,544 | 4,863 | 62,679 | 118,659 | 17,204 | ||||||||||||
Company owned and operated store costs and expenses | 262,458 | 310,685 | 45,044 | 755,818 | 1,120,290 | 162,427 | ||||||||||||
Costs of other revenues | 6,529 | 22,109 | 3,206 | 16,731 | 48,555 | 7,040 | ||||||||||||
Marketing expenses | 20,527 | 24,302 | 3,523 | 50,317 | 81,017 | 11,746 | ||||||||||||
General and administrative expenses | 58,558 | 66,460 | 9,636 | 174,963 | 289,544 | 41,979 | ||||||||||||
Franchise and royalty expenses (including franchise and royalty expenses from transactions with a related party of | 5,345 | 10,294 | 1,492 | 18,800 | 35,595 | 5,161 | ||||||||||||
Other operating costs and expenses | 1,645 | 2,395 | 347 | 2,135 | 8,340 | 1,209 | ||||||||||||
Loss on disposal of property and equipment | 414 | - | - | 1,546 | 8,835 | 1,281 | ||||||||||||
Impairment losses of long-lived assets | 1,002 | 1,750 | 254 | 1,002 | 7,223 | 1,047 | ||||||||||||
Other income | 3,157 | 5,153 | 747 | 3,476 | 7,152 | 1,037 | ||||||||||||
Total costs and expenses, net | 353,321 | 432,842 | 62,755 | 1,017,836 | 1,592,247 | 230,853 | ||||||||||||
Operating loss | (129,346 | ) | (131,361 | ) | (19,044 | ) | (374,464 | ) | (581,183 | ) | (84,263 | ) | ||||||
Interest income | 30 | 1,727 | 250 | 316 | 2,703 | 392 | ||||||||||||
Interest expenses | (1,719 | ) | (4,524 | ) | (656 | ) | (1,902 | ) | (14,804 | ) | (2,146 | ) | ||||||
Foreign currency transaction (loss)/gain | (395 | ) | (5,142 | ) | (746 | ) | (1,302 | ) | (6,275 | ) | (910 | ) | ||||||
Changes in fair value of convertible notes | (5,577 | ) | (2,867 | ) | (416 | ) | (5,577 | ) | (4,494 | ) | (652 | ) | ||||||
Changes in fair value of warrant liabilities | - | 35,954 | 5,213 | - | 45,903 | 6,655 | ||||||||||||
Changes in fair value of | - | (116,666 | ) | (16,915 | ) | - | (186,598 | ) | (27,054 | ) | ||||||||
Loss before income taxes | (137,007 | ) | (222,879 | ) | (32,314 | ) | (382,929 | ) | (744,748 | ) | (107,978 | ) | ||||||
Income tax expenses | - | - | - | - | - | - | ||||||||||||
Net loss | (137,007 | ) | (222,879 | ) | (32,314 | ) | (382,929 | ) | (744,748 | ) | (107,978 | ) | ||||||
Less: Net Loss attributable to non-controlling interests | 1,324 | 988 | 143 | (1,208 | ) | (2,103 | ) | (305 | ) | |||||||||
Net Loss attributable to shareholders of the Company | (138,331 | ) | (223,867 | ) | (32,457 | ) | (381,721 | ) | (742,645 | ) | (107,673 | ) | ||||||
Basic and diluted loss per Ordinary Share | (1.11 | ) | (1.61 | ) | (0.23 | ) | (3.14 | ) | (5.80 | ) | (0.84 | ) | ||||||
Net loss | (137,007 | ) | (222,879 | ) | (32,314 | ) | (382,929 | ) | (744,748 | ) | (107,978 | ) | ||||||
Other comprehensive income | ||||||||||||||||||
Fair value changes of short-term investment | - | 2,134 | 309 | - | 2,134 | 309 | ||||||||||||
Fair value changes of convertible notes due to instrument-specific credit risk, net of nil income taxes | (548 | ) | 505 | 73 | (548 | ) | (1,520 | ) | (220 | ) | ||||||||
Foreign currency translation adjustment, net of nil income taxes | (2,114 | ) | 5,272 | 764 | (2,890 | ) | (19,357 | ) | (2,807 | ) | ||||||||
Total comprehensive loss | (139,669 | ) | (214,968 | ) | (31,477 | ) | (386,367 | ) | (763,491 | ) | (110,696 | ) | ||||||
Less: Comprehensive loss attributable to non- controlling interests | 1,324 | 988 | 143 | (1,208 | ) | (2,103 | ) | (305 | ) | |||||||||
Comprehensive loss attributable to shareholders of the Company | (140,993 | ) | (215,956 | ) | (31,620 | ) | (385,159 | ) | (761,388 | ) | (110,391 | ) | ||||||
TH INTERNATIONAL LIMITED AND SUBSIDIARIES | |||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
(Amounts in thousands of RMB and US$) | |||||||||||||||||
For the three months ended | For the year ended | ||||||||||||||||
2021 | 2022 | 2021 | 2022 | ||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
Net cash used in operating activities | (56,722 | ) | (96,102 | ) | (13,933 | ) | (244,966 | ) | (286,928 | ) | (41,601 | ) | |||||
Net cash used in investing activities | (114,274 | ) | (93,737 | ) | (13,591 | ) | (335,277 | ) | (705,172 | ) | (102,240 | ) | |||||
Net cash provided by financing activities | 427,941 | 44,180 | 6,405 | 797,998 | 834,259 | 120,956 | |||||||||||
Effect of foreign currency exchange rate changes on cash | (507 | ) | 2,288 | 332 | (1,791 | ) | 6,081 | 882 | |||||||||
Net decrease in cash | 256,438 | (143,371 | ) | (20,787 | ) | 215,964 | (151,760 | ) | (22,003 | ) | |||||||
Cash at beginning of the period | 134,400 | 382,448 | 55,450 | 174,874 | 390,837 | 56,666 | |||||||||||
Cash at end of the period | 390,838 | 239,077 | 34,663 | 390,838 | 239,077 | 34,663 | |||||||||||
TH INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES | ||||||||||||||||||
(Unaudited, amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||||||||||
A. Adjusted store EBITDA and adjusted store EBITDA margin | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Revenues - company owned and operated stores | 213,653 | 272,509 | 39,510 | 617,226 | 938,097 | 136,011 | ||||||||||||
Food and packaging costs - company owned and operated stores | (71,596 | ) | (89,480 | ) | (12,973 | ) | (207,948 | ) | (314,550 | ) | (45,606 | ) | ||||||
Rental expenses - company owned and operated stores | (56,160 | ) | (75,939 | ) | (11,010 | ) | (148,152 | ) | (236,838 | ) | (34,338 | ) | ||||||
Payroll and employee benefits - company owned and operated stores | (71,828 | ) | (66,699 | ) | (9,670 | ) | (199,330 | ) | (268,857 | ) | (38,981 | ) | ||||||
Delivery costs - company owned and operated stores | (13,926 | ) | (21,917 | ) | (3,178 | ) | (38,604 | ) | (73,616 | ) | (10,673 | ) | ||||||
Other operating expenses - company owned and operated stores | (27,962 | ) | (23,106 | ) | (3,350 | ) | (99,105 | ) | (107,770 | ) | (15,625 | ) | ||||||
Store depreciation and amortization | (20,986 | ) | (33,544 | ) | (4,863 | ) | (62,679 | ) | (118,659 | ) | (17,204 | ) | ||||||
Franchise and royalty expenses - company owned and operated stores | (3,866 | ) | (8,174 | ) | (1,185 | ) | (14,894 | ) | (29,404 | ) | (4,263 | ) | ||||||
Fully-burdened gross loss - company owned and operated stores | (52,671 | ) | (46,350 | ) | (6,719 | ) | (153,486 | ) | (211,597 | ) | (30,679 | ) | ||||||
Store depreciation and amortization | 20,986 | 33,544 | 4,863 | 62,679 | 118,659 | 17,204 | ||||||||||||
Store pre-opening expenses | 40,465 | 25,602 | 3,712 | 110,583 | 52,262 | 7,577 | ||||||||||||
Adjusted Store EBITDA | 8,780 | 12,796 | 1,856 | 19,776 | (40,676 | ) | (5,898 | ) | ||||||||||
Adjusted Store EBITDA Margin | 4.1 | % | 4.7 | % | 4.7 | % | 3.2 | % | -4.3 | % | -4.3 | % | ||||||
B. Adjusted general and administrative expenses | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
General and administrative expenses | (58,558 | ) | (66,460 | ) | (9,636 | ) | (174,963 | ) | (289,544 | ) | (41,979 | ) | ||||||
Adjusted for: | ||||||||||||||||||
Share-based compensation expenses | - | 11,145 | 1,616 | - | 44,421 | 6,440 | ||||||||||||
Commission fee for Cantor shares | - | - | - | - | 21,521 | 3,120 | ||||||||||||
Option granted by controlling shareholder to CB holder | - | - | - | - | 1,778 | 258 | ||||||||||||
Offering costs for | - | - | - | - | 4,622 | 670 | ||||||||||||
Adjusted General and administrative expenses | (58,558 | ) | (55,315 | ) | (8,020 | ) | (174,963 | ) | (217,202 | ) | (31,491 | ) | ||||||
C. Adjusted corporate EBITDA and adjusted corporate EBITDA margin | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Operating loss | (129,346 | ) | (131,361 | ) | (19,044 | ) | (374,464 | ) | (581,183 | ) | (84,263 | ) | ||||||
Adjusted for: | ||||||||||||||||||
Store pre-opening expenses | 40,465 | 25,602 | 3,712 | 110,583 | 52,262 | 7,577 | ||||||||||||
Depreciation and amortization | 28,152 | 38,170 | 5,534 | 74,276 | 133,403 | 19,342 | ||||||||||||
Share-based compensation expenses | - | 11,145 | 1,616 | - | 44,421 | 6,440 | ||||||||||||
Commission fee for Cantor shares | - | - | - | - | 21,521 | 3,120 | ||||||||||||
Option granted by controlling shareholder to CB holder | - | - | - | - | 1,778 | 258 | ||||||||||||
Offering costs for | - | - | - | - | 4,622 | 670 | ||||||||||||
Impairment losses of long-lived assets | 1,002 | 1,750 | 254 | 1,002 | 7,223 | 1,047 | ||||||||||||
Loss on disposal of property and equipment | 414 | - | - | 1,546 | 8,835 | 1,281 | ||||||||||||
Adjusted Corporate EBITDA | (59,313 | ) | (54,694 | ) | (7,928 | ) | (187,057 | ) | (307,118 | ) | (44,528 | ) | ||||||
Adjusted Corporate EBITDA Margin | -26.5 | % | -18.1 | % | -18.1 | % | -29.1 | % | -30.4 | % | -30.4 | % | ||||||
D. Adjusted net loss and adjusted net loss margin | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Net loss | (137,007 | ) | (222,879 | ) | (32,314 | ) | (382,929 | ) | (744,748 | ) | (107,978 | ) | ||||||
Adjusted for: | ||||||||||||||||||
Store pre-opening expenses | 40,465 | 25,602 | 3,712 | 110,583 | 52,262 | 7,577 | ||||||||||||
Share-based compensation expenses | - | 11,145 | 1,616 | - | 44,421 | 6,440 | ||||||||||||
Commission fee for Cantor shares | - | - | - | - | 21,521 | 3,120 | ||||||||||||
Option granted by controlling shareholder to CB holder | - | - | - | - | 1,778 | 258 | ||||||||||||
Offering costs for | - | - | - | - | 4,622 | 670 | ||||||||||||
Impairment losses of long-lived assets | 1,002 | 1,750 | 254 | 1,002 | 7,223 | 1,047 | ||||||||||||
Loss on disposal of property and equipment | 414 | - | - | 1,546 | 8,835 | 1,281 | ||||||||||||
Changes in fair value of convertible notes | 5,577 | 2,867 | 416 | 5,577 | 4,494 | 652 | ||||||||||||
Changes in fair value of warrant liabilities | - | (35,954 | ) | (5,213 | ) | - | (45,903 | ) | (6,655 | ) | ||||||||
Changes in fair value of | - | 116,666 | 16,915 | - | 186,598 | 27,054 | ||||||||||||
Adjusted Net loss | (89,549 | ) | (100,803 | ) | (14,614 | ) | (264,221 | ) | (458,897 | ) | (66,534 | ) | ||||||
Adjusted Net loss Margin | -40.0 | % | -33.4 | % | -33.4 | % | -41.1 | % | -45.4 | % | -45.4 | % | ||||||
E. Adjusted basic and diluted net loss per Ordinary Share | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Net Loss attributable to shareholders of the Company | (138,331 | ) | (223,867 | ) | (32,457 | ) | (381,721 | ) | (742,645 | ) | (107,673 | ) | ||||||
Adjusted for: | ||||||||||||||||||
Store pre-opening expenses | 40,465 | 25,602 | 3,712 | 110,583 | 52,262 | 7,577 | ||||||||||||
Share-based compensation expenses | - | 11,145 | 1,616 | - | 44,421 | 6,440 | ||||||||||||
Commission fee for Cantor shares | - | - | - | - | 21,521 | 3,120 | ||||||||||||
Option granted by controlling shareholder to CB holder | - | - | - | - | 1,778 | 258 | ||||||||||||
Offering costs for | - | - | - | - | 4,622 | 670 | ||||||||||||
Impairment losses of long-lived assets | 1,002 | 1,750 | 254 | 1,002 | 7,223 | 1,047 | ||||||||||||
Loss on disposal of property and equipment | 414 | - | - | 1,546 | 8,835 | 1,281 | ||||||||||||
Changes in fair value of convertible notes | 5,577 | 2,867 | 416 | 5,577 | 4,494 | 652 | ||||||||||||
Changes in fair value of warrant liabilities | - | (35,954 | ) | (5,213 | ) | - | (45,903 | ) | (6,655 | ) | ||||||||
Changes in fair value of | - | 116,666 | 16,915 | - | 186,598 | 27,054 | ||||||||||||
Adjusted Net loss attributable to shareholders of the Company | (90,873 | ) | (101,791 | ) | (14,757 | ) | (263,013 | ) | (456,794 | ) | (66,229 | ) | ||||||
Weighted average shares outstanding used in calculating basic and diluted loss per share | 124,193,929 | 139,179,231 | 139,179,231 | 121,582,945 | 128,096,505 | 128,096,505 | ||||||||||||
Adjusted basic and diluted net loss per Ordinary Share | (0.73 | ) | (0.73 | ) | (0.11 | ) | (2.16 | ) | (3.57 | ) | (0.52 | ) | ||||||
Source:
2023 GlobeNewswire, Inc., source