2023 Q2 Form 10-Q Financial Statement

#000153097923000065 Filed on May 09, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1
Revenue $84.54M $83.39M
YoY Change 7.71% 21.35%
Cost Of Revenue $61.65M $63.19M
YoY Change 12.23% 31.39%
Gross Profit $22.90M $20.20M
YoY Change -2.83% -2.06%
Gross Profit Margin 27.08% 24.23%
Selling, General & Admin $25.03M $25.82M
YoY Change 25.38% 31.65%
% of Gross Profit 109.32% 127.79%
Research & Development $1.595M $1.459M
YoY Change -12.51% -30.39%
% of Gross Profit 6.97% 7.22%
Depreciation & Amortization $672.0K $668.0K
YoY Change 0.9% -7.22%
% of Gross Profit 2.93% 3.31%
Operating Expenses $36.29M $38.86M
YoY Change 5.78% 10.49%
Operating Profit -$13.39M -$18.66M
YoY Change 24.66% 28.28%
Interest Expense -$9.000K -$189.0K
YoY Change -101.2% 209.84%
% of Operating Profit
Other Income/Expense, Net -$9.000K -$189.0K
YoY Change -101.2% 209.84%
Pretax Income -$13.40M -$18.85M
YoY Change 34.07% 29.04%
Income Tax $20.00K $20.00K
% Of Pretax Income
Net Earnings -$13.42M -$18.87M
YoY Change 34.0% 29.0%
Net Earnings / Revenue -15.87% -22.63%
Basic Earnings Per Share -$0.14 -$0.20
Diluted Earnings Per Share -$0.14 -$0.20
COMMON SHARES
Basic Shares Outstanding 93.43M shares 93.35M shares
Diluted Shares Outstanding 94.10M shares 93.11M shares

Balance Sheet

Concept 2023 Q2 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $17.85M $11.94M
YoY Change -73.31% -84.72%
Cash & Equivalents $17.85M $9.221M
Short-Term Investments $0.00 $2.717M
Other Short-Term Assets $8.690M $8.089M
YoY Change -36.01% -21.88%
Inventory $82.10M $98.47M
Prepaid Expenses
Receivables $35.87M $45.23M
Other Receivables $0.00 $0.00
Total Short-Term Assets $144.5M $163.7M
YoY Change -29.8% -18.88%
LONG-TERM ASSETS
Property, Plant & Equipment $40.99M $42.52M
YoY Change -14.55% -14.1%
Goodwill $2.230M $2.230M
YoY Change 0.0% 0.0%
Intangibles $335.0K $352.0K
YoY Change -17.28% -16.78%
Long-Term Investments
YoY Change
Other Assets $4.438M $4.610M
YoY Change 42.7% 56.75%
Total Long-Term Assets $48.00M $49.71M
YoY Change -10.65% -9.77%
TOTAL ASSETS
Total Short-Term Assets $144.5M $163.7M
Total Long-Term Assets $48.00M $49.71M
Total Assets $192.5M $213.4M
YoY Change -25.84% -16.93%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.71M $25.18M
YoY Change -59.41% 4.85%
Accrued Expenses $25.41M $27.02M
YoY Change -1.71% -1.99%
Deferred Revenue $1.723M $1.485M
YoY Change 122.32% 97.74%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $40.00K $49.00K
YoY Change -59.6% -81.92%
Total Short-Term Liabilities $41.85M $53.69M
YoY Change -33.44% 2.58%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $13.00K
YoY Change -100.0% -78.69%
Other Long-Term Liabilities $434.0K $615.0K
YoY Change 864.44% 908.2%
Total Long-Term Liabilities $434.0K $615.0K
YoY Change 864.44% 908.2%
TOTAL LIABILITIES
Total Short-Term Liabilities $41.85M $53.69M
Total Long-Term Liabilities $434.0K $615.0K
Total Liabilities $68.11M $82.16M
YoY Change -29.52% -6.68%
SHAREHOLDERS EQUITY
Retained Earnings -$472.1M -$458.7M
YoY Change 13.64% 13.14%
Common Stock $9.000K $9.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $124.4M $131.3M
YoY Change
Total Liabilities & Shareholders Equity $192.5M $213.4M
YoY Change -25.84% -16.93%

Cashflow Statement

Concept 2023 Q2 2023 Q1
OPERATING ACTIVITIES
Net Income -$13.42M -$18.87M
YoY Change 34.0% 29.0%
Depreciation, Depletion And Amortization $672.0K $668.0K
YoY Change 0.9% -7.22%
Cash From Operating Activities $6.519M -$2.761M
YoY Change -160.93% -81.22%
INVESTING ACTIVITIES
Capital Expenditures $713.0K $473.0K
YoY Change -241.75% 97.08%
Acquisitions
YoY Change
Other Investing Activities $2.730M $2.953M
YoY Change -59.94% -66.63%
Cash From Investing Activities $2.017M $2.480M
YoY Change -68.04% -71.19%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 88.00K -$15.00K
YoY Change -1566.67% -133.33%
NET CHANGE
Cash From Operating Activities 6.519M -$2.761M
Cash From Investing Activities 2.017M $2.480M
Cash From Financing Activities 88.00K -$15.00K
Net Change In Cash 8.624M -$296.0K
YoY Change -296.22% -95.11%
FREE CASH FLOW
Cash From Operating Activities $6.519M -$2.761M
Capital Expenditures $713.0K $473.0K
Free Cash Flow $5.806M -$3.234M
YoY Change -156.94% -78.36%

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CapitalExpendituresIncurredButNotYetPaid
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CY2023Q1 us-gaap Nature Of Operations
NatureOfOperations
Nature of BusinessThe Honest Company, Inc. (the “Company”) was incorporated in the State of California on July 19, 2011 and on May 23, 2012 was re-incorporated in the State of Delaware under the same name. The Company is a digitally-native consumer products company dedicated to creating clean- and sustainably-designed products spanning baby care, beauty, personal care, wellness and household care. The Company sells its products through digital and retail sales channels in the following product categories: Diapers and Wipes, Skin and Personal Care, and Household and Wellness.
CY2023Q1 us-gaap Number Of Operating Segments
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CY2023Q1 us-gaap Use Of Estimates
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:112%">    </span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for credit losses, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions </span></div>underlying stock-based compensation and for the periods prior to the Company’s IPO, the fair value of common stock. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities.In light of the unknown ultimate duration and severity of COVID-19, the impact of any COVID-19 variants, and ensuing macro factors, the Company faces a greater degree of uncertainty than normal in making certain judgments and estimates needed to apply significant accounting policies. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted information in context with the information reasonably available to the Company as of March 31, 2023 and through the date these condensed consolidated financial statements were issued. Management is not aware of any specific event or circumstance that would require an update to estimates or judgments or a revision to the carrying value of assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods. For example, based on macro trends within our Household and Wellness product category, consumer demand for sanitizing and disinfecting products decreased over the past few years. As a result, the Company made a decision to exit certain elements of these products during the quarter ended March 31, 2023. Refer to Note 14, "Restructuring" included in these condensed consolidated financial statements for more information on the Company's restructuring initiatives.
CY2023Q1 us-gaap Allowance For Doubtful Accounts Receivable
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CY2023Q1 us-gaap Available For Sale Securities Debt Maturities Within One Year Fair Value
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CY2023Q1 us-gaap Unrecognized Tax Benefits Period Increase Decrease
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CY2023Q1 us-gaap Finance Lease Right Of Use Asset
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1885000 usd
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2023Q1 us-gaap Finance Lease Liability
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CY2022Q4 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
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Files In Submission

Name View Source Status
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