The Container Store Group, Inc. Reports Unaudited Consolidated Earnings Results for the Thirteen Weeks and Thirty Nine Weeks Ended November 29, 2014; Provides Consolidated Earnings Guidance for the Fourth Quarter and Full Year of 2014
January 09, 2015 at 02:41 am IST
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The Container Store Group, Inc. reported unaudited consolidated earnings results for the thirteen weeks and thirty nine weeks ended November 29, 2014. For the thirteen weeks, the company reported net sales of $190.922 million compared to $188.298 million a year ago. Income from operations was $13.756 million compared to loss from operations of $0.871 million a year ago. Income before taxes was $9.491 million compared to loss before taxes of $6.781 million a year ago. Net income was $6.249 million compared to net loss of $9.486 million a year ago. Net income available to common shareholders were $6.249 million compared to loss of $25.083 million a year ago. Basic and diluted income per share was $0.13 compared to basic and diluted loss per share of $1.39 a year ago. EBITDA was $21.532 million compared to $6.570 million a year ago. Adjusted EBITDA was $23.398 million compared to $24.103 million a year ago. Adjusted net income was $3.207 million compared to $5.195 million a year ago. Adjusted net income per diluted common share was $0.07 compared to $0.11 a year ago.
For the thirty nine weeks, the company reported net sales of $557.607 million compared to $531.716 million a year ago. Income from operations was $25.365 million compared to $10.398 million a year ago. Income before taxes was $12.415 million compared to loss of $7.687 million a year ago. Net income was $9.625 million compared to loss of $10.174 million a year ago. Net income available to common shareholders were $9.625 million compared to loss of $69.921 million a year ago. Basic and diluted income per share was $0.20 compared to basic and diluted loss per share of $8.78 a year ago. Net cash provided by operating activities were $15.664 million compared to $10.646 million a year ago. Additions to property and equipment were $40.359 million compared to $32.563 million a year ago. EBITDA was $47.964 million compared to $31.789 million a year ago. Adjusted EBITDA was $56.978 million compared to $56.822 million a year ago. Adjusted net income was $4.744 million compared to $5.669 million a year ago. Adjusted net income per diluted common share was $0.10 compared to $0.12 a year ago.
The company provided consolidated earnings guidance for the full year of 2014. For full fiscal 2014 consolidated net sales are expected to be $785 - $795 million based on announced store openings and estimated comparable store sales growth of flat to slightly negative. Net income is expected to be $0.52 to $0.55 per diluted common share based on estimated diluted common shares outstanding of 49 million. The company expects its tax rate for the full fiscal year 2014 on a GAAP basis to be approximately 31%, or 40% on an adjusted basis, after excluding one-time gains on the sale of an Elfa subsidiary and building, as well as non-recurring tax benefits. Adjusting for these items, adjusted net income is expected to be $0.41 to $0.44 per diluted common share based on estimated diluted common shares outstanding of 49 million. Adjusted EBITDA is expected to be $93 to $96 million.
The company provided earnings guidance for the fourth quarter of 2014. One, first on sales. Given reported quarter-to-date sales performance and the recent strengthening of the U.S. dollar, which hurts the conversion of Elfa's revenue, full year sales outlook now assumes fourth quarter comp to be up in the low single-digit range, driven by the expected impact of planned initiative, as well as cycling the difficult fourth quarter weather from the prior year and implied fourth quarter sales of $227 million to $237 million. Second, on gross margin. The company expects slight gross margin improvement at The Container Store due to the strengthening dollar, with a portion of this improvement to be offset by expected decline at Elfa due to sales mix. Third, the company is therefore narrowing previously issued EPS range for fiscal 2014 to $0.41 to $0.44, which implies fourth quarter adjusted EPS of $0.31 to $0.34.
The Container Store Group, Inc. is a specialty retailer of organizing solutions, custom spaces, and in-home services. The Companyâs segment includes The Container Store (TCS) and Elfa. TCS segment consists of retail stores, Website, and call center (which includes business sales), as well as its in-home services business. Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically exclusively through the TCS segment as well as on a wholesale basis. This segment designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. Its shelving and drawer systems are customizable for any area of the home, including closets, kitchens, offices, and garages. The Company also offers its products directly to its customers through its Website, responsive mobile site and application, call center, and in-home design specialists and organizers. Its products are offered under elfa, Avera and Preston brands.
The Container Store Group, Inc. Reports Unaudited Consolidated Earnings Results for the Thirteen Weeks and Thirty Nine Weeks Ended November 29, 2014; Provides Consolidated Earnings Guidance for the Fourth Quarter and Full Year of 2014