2018 Q4 Form 10-K Financial Statement

#000155280020000005 Filed on March 13, 2020

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2018 Q2
Revenue $83.95M $89.26M $92.91M
YoY Change 6.83% 5.73% 3.86%
Cost Of Revenue $24.97M $26.25M $27.60M
YoY Change -4.37% -5.44% 1.77%
Gross Profit $58.98M $63.01M $65.31M
YoY Change 12.41% 11.21% 4.75%
Gross Profit Margin 70.26% 70.59% 70.29%
Selling, General & Admin $58.27M $59.13M $57.87M
YoY Change 5.09% 13.09% 14.71%
% of Gross Profit 98.8% 93.84% 88.61%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $7.216M $7.200M $6.980M
YoY Change 5.5% 5.73% 11.68%
% of Gross Profit 12.24% 11.43% 10.69%
Operating Expenses $58.27M $59.13M $57.87M
YoY Change 5.09% 13.09% 14.73%
Operating Profit $705.0K $3.880M $7.442M
YoY Change -119.24% -11.35% -35.84%
Interest Expense -$824.0K $715.0K -$600.0K
YoY Change 96.19% 41.58% 33.33%
% of Operating Profit -116.88% 18.43% -8.06%
Other Income/Expense, Net $40.00K $40.00K $40.00K
YoY Change 0.0% 33.33% -33.33%
Pretax Income -$79.00K $3.205M $6.880M
YoY Change -98.05% -17.95% -38.63%
Income Tax $1.201M $652.0K $1.920M
% Of Pretax Income 20.34% 27.91%
Net Earnings -$1.080M $2.553M $4.958M
YoY Change -85.31% 4.72% -35.8%
Net Earnings / Revenue -1.29% 2.86% 5.34%
Basic Earnings Per Share -$0.02 $0.05 $0.10
Diluted Earnings Per Share -$0.02 $0.05 $0.10
COMMON SHARES
Basic Shares Outstanding 52.76M 51.92M 51.89M
Diluted Shares Outstanding 52.30M 52.02M

Balance Sheet

Concept 2018 Q4 2018 Q3 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.557M $10.11M $9.900M
YoY Change -15.8% -18.51% -17.5%
Cash & Equivalents $5.557M $10.11M $9.907M
Short-Term Investments
Other Short-Term Assets $7.181M $6.921M $6.600M
YoY Change 52.24% 25.84% 46.67%
Inventory $110.1M $106.3M $100.4M
Prepaid Expenses
Receivables $3.084M $3.723M $3.200M
Other Receivables $3.548M $3.362M $3.500M
Total Short-Term Assets $130.3M $131.3M $123.7M
YoY Change 23.43% 39.04% 39.93%
LONG-TERM ASSETS
Property, Plant & Equipment $158.4M $153.5M $150.5M
YoY Change 4.59% 1.36% 1.76%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.759M $1.952M $12.50M
YoY Change -16.52% -90.29% -41.31%
Total Long-Term Assets $167.3M $165.6M $163.0M
YoY Change 1.32% -3.41% -3.66%
TOTAL ASSETS
Total Short-Term Assets $130.3M $131.3M $123.7M
Total Long-Term Assets $167.3M $165.6M $163.0M
Total Assets $297.6M $296.9M $286.7M
YoY Change 9.94% 11.66% 11.3%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $25.85M $25.73M $33.60M
YoY Change -15.98% -9.42% 73.2%
Accrued Expenses $24.48M $27.79M $7.000M
YoY Change 9.24% 371.02% 6.06%
Deferred Revenue $7.383M $8.062M
YoY Change -8.44%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $7.000M
YoY Change -100.0% -100.0% -7.89%
Total Short-Term Liabilities $50.52M $53.69M $67.70M
YoY Change -18.57% -11.55% 34.86%
LONG-TERM LIABILITIES
Long-Term Debt $53.00M $46.00M $23.00M
YoY Change 191.5% 630.16% 93.28%
Other Long-Term Liabilities $3.752M $3.931M $47.10M
YoY Change -21.33% -91.34% 6.08%
Total Long-Term Liabilities $56.75M $49.93M $70.10M
YoY Change 147.27% -3.42% 24.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $50.52M $53.69M $67.70M
Total Long-Term Liabilities $56.75M $49.93M $70.10M
Total Liabilities $151.3M $147.5M $137.9M
YoY Change 19.26% 31.24% 29.48%
SHAREHOLDERS EQUITY
Retained Earnings -$25.86M -$24.78M
YoY Change -28.65%
Common Stock $5.000K $5.000K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $146.3M $149.4M $148.8M
YoY Change
Total Liabilities & Shareholders Equity $297.6M $296.9M $286.7M
YoY Change 9.94% 11.66% 11.3%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2018 Q2
OPERATING ACTIVITIES
Net Income -$1.080M $2.553M $4.958M
YoY Change -85.31% 4.72% -35.8%
Depreciation, Depletion And Amortization $7.216M $7.200M $6.980M
YoY Change 5.5% 5.73% 11.68%
Cash From Operating Activities $2.449M -$3.559M $9.420M
YoY Change -166.73% -124.49% -36.27%
INVESTING ACTIVITIES
Capital Expenditures -$12.39M -$9.743M -$8.300M
YoY Change -1.09% 21.33% -17.33%
Acquisitions
YoY Change
Other Investing Activities $1.131M -$7.000K $20.00K
YoY Change 11210.0%
Cash From Investing Activities -$11.26M -$9.750M -$8.280M
YoY Change -10.04% 21.42% -17.53%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.297M 13.50M 1.630M
YoY Change -58.68% -211.42% -125.75%
NET CHANGE
Cash From Operating Activities 2.449M -3.559M 9.420M
Cash From Investing Activities -11.26M -9.750M -8.280M
Cash From Financing Activities 4.297M 13.50M 1.630M
Net Change In Cash -4.517M 195.0K 2.770M
YoY Change -21.99% -103.47% -274.21%
FREE CASH FLOW
Cash From Operating Activities $2.449M -$3.559M $9.420M
Capital Expenditures -$12.39M -$9.743M -$8.300M
Free Cash Flow $14.84M $6.184M $17.72M
YoY Change 67.53% -72.59% -28.61%

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<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;">Nature of Business</font> </p> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Tile Shop Holdings, Inc. (&#x201C;Holdings&#x201D;, and together with its wholly owned subsidiaries, the &#x201C;Company&#x201D;) was incorporated in Delaware in June 2012. On August 21, 2012, Holdings consummated the transactions contemplated pursuant to that certain Contribution and Merger Agreement dated as of June 27, 2012, among Holdings, JWC Acquisition Corp., a publicly-held Delaware corporation (&#x201C;JWCAC&#x201D;), The Tile Shop, LLC, a privately-held Delaware limited liability company (&#x201C;The Tile Shop&#x201D;), and certain other parties. Through a series of transactions, The Tile Shop was contributed to and became a subsidiary of Holdings and Holdings effected a business combination with and became a successor issuer to JWCAC. </font> </p> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">The Company is a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. Natural stone products include marble, travertine, granite, quartz, sandstone, slate, and onyx tiles. Man-made products include ceramic, porcelain, glass, cement, wood look, and metal tiles. The majority of the tile products are sold under the Company's proprietary Rush River and Fired Earth brand names. The Company purchases tile products, accessories and tools directly from its network of suppliers. The Company manufactures its own setting and maintenance materials, such as thinset, grout and sealer, under the Superior brand name. As of December 31, </font><font style="display: inline;">2019</font><font style="display: inline;">, the Company operated </font><font style="display: inline;">142</font><font style="display: inline;"> stores in </font><font style="display: inline;">31</font><font style="display: inline;"> states and the District of Columbia, with an average size of approximately </font><font style="display: inline;">20,000</font><font style="display: inline;"> square feet. The Company also has a sourcing office located in China.</font> </p> <p><font size="1"> </font></p> </div> </div>
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610000
CY2019Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
130461000
CY2017 us-gaap Proceeds From Long Term Lines Of Credit
ProceedsFromLongTermLinesOfCredit
35000000
CY2017 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
7000
CY2017 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1639000
CY2018Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
334163000
CY2019Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
353401000
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
158356000
CY2017 us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
36575000
CY2018 us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
103267000
CY2019 us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
53204000
CY2019Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
800000
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-25857000
CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-25518000
CY2017 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
344600000
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
91134000
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
357254000
CY2018Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
92914000
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
89259000
CY2018Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
83947000
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
86908000
CY2019 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
340351000
CY2019Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
88903000
CY2019Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
85944000
CY2019Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
78596000
CY2019Q4 us-gaap Self Insurance Reserve Current
SelfInsuranceReserveCurrent
600000
CY2017 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
210376000
CY2018 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
233201000
CY2019 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
237476000
CY2017 us-gaap Share Based Compensation
ShareBasedCompensation
3156000
CY2019 us-gaap Short Term Lease Cost
ShortTermLeaseCost
876000
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
138899000
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
143874000
CY2019Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
130899000
CY2019 us-gaap Stock Issued During Period Shares Restricted Stock Award Gross
StockIssuedDuringPeriodSharesRestrictedStockAwardGross
CY2017 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
1639000
CY2019 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
10456000
CY2019Q4 us-gaap Undistributed Earnings Of Foreign Subsidiaries
UndistributedEarningsOfForeignSubsidiaries
400000
CY2017 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
0
CY2018 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
0
CY2019 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
0
CY2019 us-gaap Use Of Estimates
UseOfEstimates
<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;">Use of Estimates</font> </p> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">The preparation of financial statements in conformity with&nbsp;generally accepted accounting principles in the&nbsp;United States (&#x201C;GAAP&#x201D;) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The Company&#x2019;s estimates and judgments are based on historical experience and various other assumptions that it believes are reasonable under the circumstances. The amount of assets and liabilities reported on the Company's balance sheets and the amounts of income and expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition and related reserves for sales returns, useful lives of property, plant and equipment, determining impairment of property, plant and equipment, accounting for leases, valuation of inventory, and income taxes. Actual results may differ from these estimates.</font> </p> <p><font size="1"> </font></p> </div> </div>
CY2019 us-gaap Variable Lease Cost
VariableLeaseCost
13529000
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
51927877
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
52089160
CY2019 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
50624309
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
51700045
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
51907619
CY2019 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
50624309
CY2018Q4 us-gaap Workers Compensation Liability Current
WorkersCompensationLiabilityCurrent
1600000
CY2019Q4 us-gaap Workers Compensation Liability Current
WorkersCompensationLiabilityCurrent
1900000

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