Generated Operating Cash Flow of $40.1 Million and Made $45.0 Million of Debt Repayments in the Fourth
Quarter
Entered into Amended Credit Agreement to
Increase Revolving Credit Line to $90
Million and Extend Maturity Date by Five Years
NASHVILLE, Tenn., April 4,
2023 /PRNewswire/ -- Kirkland's, Inc. (Nasdaq: KIRK)
("Kirkland's Home" or the "Company"), a specialty retailer of home
décor and furnishings, announced financial results for the 13-week
and 52-week periods ended January 28,
2023.
Fourth Quarter 2022 Summary
- Net sales were $162.5 million,
with comparable sales decreasing 6.1%.
- Gross profit margin of 24.8%.
- GAAP net loss of $3.8 million,
or a loss of $0.30 per diluted share,
and adjusted net loss of $1.1
million, or an adjusted loss of $0.09 per diluted share.
- Adjusted EBITDA of $2.6
million.
- Operating cash flow of $40.1
million and $45.0 million of
debt repayments.
- Ended the year with a cash balance of $5.2 million, $15.0
million in outstanding debt and total liquidity of
$46.2 million.
Fiscal Year 2022 Summary
- Net sales were $498.8 million,
with comparable sales decreasing 9.0%.
- Gross profit margin of 24.0%.
- GAAP net loss of $44.7
million, or a loss of $3.52
per diluted share, and adjusted net loss of $30.4 million, or an adjusted loss of
$2.39 per diluted share.
- Adjusted EBITDA of $(21.3)
million.
- Closed 16 stores and opened one store to end the year with
346 stores.
Management Commentary
"While fiscal 2022 was a challenging year, I'm proud of the
resilience of our organization as we navigated a highly volatile
consumer environment," said Steve "Woody" Woodward, CEO of
Kirkland's Home. "As previously disclosed, we started the fourth
quarter with promising sales trends during our Black Friday event,
but then declining traffic and the effect of significant inventory
reductions on our merchandise mix drove sales lower. Despite these
challenges, we were able to generate over $40 million in operating cash flow that was used
to pay down debt and strengthen our balance sheet.
"With better liquidity and a rebalanced merchandise strategy in
place, we believe fiscal 2023 will be a year of stabilization. We
recognize the importance of regaining market share in our value
décor and holiday categories. Shoppers in these lower-priced
categories have been impactful in driving sales growth throughout
our history, so we have optimized our product mix and enhanced our
merchandise offerings to reinvigorate this portion of our customer
base. We expect to begin seeing margin improvements starting in the
fiscal first quarter as the supply chain has begun to normalize,
and we continue to remain vigilant in our efforts to tightly manage
operating costs across the organization.
"Although it remains difficult to predict when there will be a
rebound in discretionary spending, we believe in our ability to
re-establish Kirkland's Home as a leading specialty retailer of
home décor and furnishings. In light of everything we have faced,
the organization has made significant progress improving the
quality and design of our merchandise, enhancing the omni-channel
experience, and optimizing the operating structure with a focus on
delivering long-term profitability. We are laying a strong
foundation that we believe will allow us to fully unlock the
potential of our platform over time."
Fourth Quarter 2022 Financial Results
Net sales in the fourth quarter of 2022 were $162.5 million, compared to $176.2 million in the prior year quarter.
Comparable same-store sales decreased 6.1%, including a 5.5%
decline in e-commerce sales. The decrease was primarily driven by a
decline in traffic, partially offset by an increase in average
ticket.
Gross profit in the fourth quarter of 2022 was $40.3 million, or 24.8% of net sales, compared to
$58.7 million, or 33.3% of net sales
in the prior year quarter. The decline was primarily a result of
increased promotional activity to drive sales and reduce inventory,
along with higher freight costs and the deleverage of fixed cost
components on the lower sales base.
Operating loss in the fourth quarter of 2022 was $3.2 million compared to operating income of
$14.0 million in the prior year
quarter. The decrease was primarily a result of the aforementioned
decline in gross profit and the deleverage of fixed operating
costs.
EBITDA in the fourth quarter of 2022 was $0.4 million compared to $18.9 million in the prior year quarter. Adjusted
EBITDA in the fourth quarter of 2022 was $2.6 million compared to $20.3 million in the prior year quarter.
Net loss in the fourth quarter of 2022 was $3.8 million, or a loss of $0.30 per diluted share, compared to net income
of $12.5 million, or earnings of
$0.91 per diluted share, in the prior
year quarter. Adjusted net loss in the fourth quarter of 2022 was
$1.1 million, or a loss of
$0.09 per diluted share, compared to
an adjusted net income of $11.4
million, or income of $0.84
per diluted share, in the prior year quarter.
At January 28, 2023, the Company
had a cash balance of $5.2 million
and total liquidity of $46.2 million,
with $15.0 million of outstanding
debt under its $75 million senior
secured revolving credit facility.
Fiscal Year 2022 Financial Results
Net sales in 2022 were $498.8
million, with 4.2% fewer stores, compared to $558.2 million in 2021. Comparable same-store
sales decreased 9.0%, which included an 11.6% decrease in
e-commerce sales. The decrease was primarily driven by a decline in
traffic and conversion, partially offset by an increase in average
ticket.
Gross profit in 2022 was $119.8
million or 24.0% of net sales, compared to $188.4 million, or 33.8% of net sales, in 2021.
The decline was primarily a result of increased promotional
activity to drive sales and reduce inventory, along with higher
freight costs and the deleverage of fixed cost components on the
lower sales base.
Operating loss in 2022 was $42.8
million compared to operating income of $25.3 million in 2021. The decrease was primarily
a result of the aforementioned decline in gross profit and the
deleverage of fixed operating costs.
EBITDA in 2022 was a loss of $26.2
million compared to income of $45.8
million in 2021. Adjusted EBITDA in 2022 was a loss of
$21.3 million compared to income of
$47.8 million in 2021.
Net loss in 2022 was $44.7
million, or a loss of $3.52
per diluted share, compared to net income of $22.0 million, or $1.51 diluted earnings per share, in 2021.
Adjusted net loss in 2022 was $30.4
million, or a loss of $2.39
per diluted share, compared to an adjusted net income of
$20.4 million, or $1.40 diluted earnings per share, in 2021.
During fiscal 2022, the Company repurchased approximately
480,000 shares for $6.3 million at an
average cost of $13.03 per share.
Amended Credit Agreement
As of March 31, 2023, Kirkland's
Home has entered into an amended senior credit facility (the
"Credit Agreement") with its existing lender, Bank of America,
N.A., serving as the administrative agent, collateral agent and
lender. The Credit Agreement increases the face amount of the
revolving line of credit to $90
million, and extends the maturity date to March 2028.
Investor Conference Call and Web Simulcast
Kirkland's Home management will host a conference call to
discuss its financial results for the fourth quarter and full year
ended January 28, 2023, followed by a
question-and-answer period with Steve
Woodward, President and CEO, and Mike Madden, EVP and CFO.
Date: Tuesday, April 4, 2023
Time: 9:00 a.m. Eastern Time
Toll-free dial-in number: (855) 560-2577
International dial-in number: (412) 542-4163
Conference ID: 10175961
Please call the conference telephone number 10-15 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Gateway Group at (949)
574-3860.
The conference call will be broadcast live and available for
replay here and via the investor relations section of the
Company's website at www.kirklands.com. The online replay will
follow shortly after the call and continue for one year.
A telephonic replay of the conference call will be available
after the conference call through April 11,
2023.
Toll-free replay number: (877) 344-7529
International replay number: (412) 317-0088
Replay ID: 5952743
About Kirkland's, Inc.
Kirkland's, Inc. is a specialty retailer of home décor and
furnishings in the United States,
currently operating 344 stores in 35 states as well as an
e-commerce website, www.kirklands.com, under the Kirkland's Home
brand. The Company provides its customers an engaging shopping
experience characterized by a curated, affordable selection of home
furnishings along with inspirational design ideas. This combination
of quality and stylish merchandise, value pricing and a stimulating
online and store experience allows the Company's customers to
furnish their home at a great value. More information can be found
at www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, certain
statements in this release, constitute forward-looking statements
that are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and are subject to the
finalization of the Company's quarterly financial and accounting
procedures. Forward-looking statements deal with potential future
circumstances and developments and are, accordingly,
forward-looking in nature. You are cautioned that such
forward-looking statements, which may be identified by words such
as "anticipate," "believe," "expect," "estimate," "intend," "plan,"
"seek," "may," "could," "strategy," and similar expressions,
involve known and unknown risks and uncertainties, which may cause
the Company's actual results to differ materially from forecasted
results. Those risks and uncertainties include, among other things,
risks associated with the Company's liquidity including cash flows
from operations and the amount of borrowings under the secured
revolving credit facility, the Company's actual and anticipated
progress towards its short-term and long-term objectives including
its brand transformation strategy, the timing of normalized
macroeconomic conditions from the impacts of global geopolitical
unrest and the COVID-19 pandemic on the Company's revenues,
inventory and supply chain, the continuing consumer impact of
inflation and countermeasures, including raising interest rates,
the effectiveness of the Company's marketing campaigns, risks
related to changes in U.S. policy related to imported merchandise,
particularly with regard to the impact of tariffs on goods imported
from China and strategies
undertaken to mitigate such impact, the Company's ability to retain
its senior management team, continued volatility in the price of
the Company's common stock, the competitive environment in the home
décor industry in general and in the Company's specific market
areas, inflation, fluctuations in cost and availability of
inventory, increased transportation costs and potential
interruptions in supply chain, distribution systems and delivery
network, including our e-commerce systems and channels, the ability
to control employment and other operating costs, availability of
suitable retail locations and other growth opportunities,
disruptions in information technology systems including the
potential for security breaches of the Company's information or its
customers' information, seasonal fluctuations in consumer spending,
and economic conditions in general. Those and other risks are more
fully described in the Company's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form
10-K filed on March 25, 2022 and
subsequent reports. Forward-looking statements included in this
release are made as of the date of this release. Any changes in
assumptions or factors on which such statements are based could
produce materially different results. Except as required by law,
the Company disclaims any obligation to update any such factors or
to publicly announce results of any revisions to any of the
forward-looking statements contained herein to reflect future
events or developments.
Contact:
|
Kirkland's Home
|
Gateway Group,
Inc.
|
|
Mike Madden
|
Cody Slach and Cody
Cree
|
|
(615)
872-4800
|
KIRK@gatewayir.com
|
|
|
(949)
574-3860
|
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
13-Week Period Ended
|
|
|
|
January 28,
|
|
|
January 29,
|
|
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
$
|
162,477
|
|
|
$
|
176,191
|
|
Cost of
sales
|
|
|
122,192
|
|
|
|
117,529
|
|
Gross
profit
|
|
|
40,285
|
|
|
|
58,662
|
|
Operating
expenses:
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
22,038
|
|
|
|
24,605
|
|
Other operating
expenses
|
|
|
18,634
|
|
|
|
18,295
|
|
Depreciation
(exclusive of depreciation included in cost of sales)
|
|
|
1,185
|
|
|
|
1,714
|
|
Asset
impairment
|
|
|
1,624
|
|
|
|
—
|
|
Total operating
expenses
|
|
|
43,481
|
|
|
|
44,614
|
|
Operating (loss)
income
|
|
|
(3,196)
|
|
|
|
14,048
|
|
Other expense (income),
net
|
|
|
409
|
|
|
|
(21)
|
|
(Loss) income before
income taxes
|
|
|
(3,605)
|
|
|
|
14,069
|
|
Income tax
expense
|
|
|
188
|
|
|
|
1,617
|
|
Net (loss)
income
|
|
$
|
(3,793)
|
|
|
$
|
12,452
|
|
(Loss) earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.30)
|
|
|
$
|
0.97
|
|
Diluted
|
|
$
|
(0.30)
|
|
|
$
|
0.91
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
12,754
|
|
|
|
12,816
|
|
Diluted
|
|
|
12,754
|
|
|
|
13,623
|
|
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
52-Week Period Ended
|
|
|
|
January 28,
|
|
|
January 29,
|
|
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
$
|
498,825
|
|
|
$
|
558,180
|
|
Cost of
sales
|
|
|
379,036
|
|
|
|
369,752
|
|
Gross
profit
|
|
|
119,789
|
|
|
|
188,428
|
|
Operating
expenses:
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
85,231
|
|
|
|
84,931
|
|
Other operating
expenses
|
|
|
69,183
|
|
|
|
70,786
|
|
Depreciation
(exclusive of depreciation included in cost of sales)
|
|
|
6,055
|
|
|
|
6,612
|
|
Asset
impairment
|
|
|
2,071
|
|
|
|
754
|
|
Total operating
expenses
|
|
|
162,540
|
|
|
|
163,083
|
|
Operating (loss)
income
|
|
|
(42,751)
|
|
|
|
25,345
|
|
Other expense (income),
net
|
|
|
1,400
|
|
|
|
(24)
|
|
(Loss) income before
income taxes
|
|
|
(44,151)
|
|
|
|
25,369
|
|
Income tax
expense
|
|
|
543
|
|
|
|
3,343
|
|
Net (loss)
income
|
|
$
|
(44,694)
|
|
|
$
|
22,026
|
|
(Loss) earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
|
(3.52)
|
|
|
$
|
1.61
|
|
Diluted
|
|
$
|
(3.52)
|
|
|
$
|
1.51
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
12,703
|
|
|
|
13,670
|
|
Diluted
|
|
|
12,703
|
|
|
|
14,615
|
|
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
|
|
|
|
January 28,
|
|
|
January 29,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,171
|
|
|
$
|
25,003
|
|
Inventories,
net
|
|
|
84,071
|
|
|
|
114,029
|
|
Prepaid expenses and
other current assets
|
|
|
5,089
|
|
|
|
10,537
|
|
Total current
assets
|
|
|
94,331
|
|
|
|
149,569
|
|
Property and equipment,
net
|
|
|
38,676
|
|
|
|
49,997
|
|
Operating lease
right-of-use assets
|
|
|
134,525
|
|
|
|
124,684
|
|
Other assets
|
|
|
6,714
|
|
|
|
6,939
|
|
Total
assets
|
|
$
|
274,246
|
|
|
$
|
331,189
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
43,739
|
|
|
$
|
62,535
|
|
Accrued
expenses
|
|
|
26,069
|
|
|
|
30,811
|
|
Operating lease
liabilities
|
|
|
41,499
|
|
|
|
41,268
|
|
Total current
liabilities
|
|
|
111,307
|
|
|
|
134,614
|
|
Operating lease
liabilities
|
|
|
114,613
|
|
|
|
111,021
|
|
Revolving line of
credit
|
|
|
15,000
|
|
|
|
—
|
|
Other
liabilities
|
|
|
3,553
|
|
|
|
4,428
|
|
Total
liabilities
|
|
|
244,473
|
|
|
|
250,063
|
|
Net shareholders'
equity
|
|
|
29,773
|
|
|
|
81,126
|
|
Total liabilities and
shareholders' equity
|
|
$
|
274,246
|
|
|
$
|
331,189
|
|
KIRKLAND'S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
52-Week Period Ended
|
|
|
|
January 28,
|
|
|
January 29,
|
|
|
|
2023
|
|
|
2022
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(44,694)
|
|
|
$
|
22,026
|
|
Adjustments to
reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
16,522
|
|
|
|
20,431
|
|
Amortization of debt
issuance costs
|
|
|
91
|
|
|
|
91
|
|
Impairment
charge
|
|
|
2,071
|
|
|
|
754
|
|
Loss on disposal of
property and equipment
|
|
|
185
|
|
|
|
195
|
|
Stock-based
compensation expense
|
|
|
1,961
|
|
|
|
1,667
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Inventories,
net
|
|
|
29,958
|
|
|
|
(51,946)
|
|
Prepaid expenses and
other current assets
|
|
|
5,152
|
|
|
|
(1,949)
|
|
Accounts
payable
|
|
|
(18,192)
|
|
|
|
6,455
|
|
Accrued
expenses
|
|
|
(3,005)
|
|
|
|
(6,643)
|
|
Income taxes
refundable
|
|
|
(1,441)
|
|
|
|
(310)
|
|
Operating lease assets
and liabilities
|
|
|
(6,269)
|
|
|
|
(19,412)
|
|
Other assets and
liabilities
|
|
|
(490)
|
|
|
|
(2,144)
|
|
Net cash used in
operating activities
|
|
|
(18,151)
|
|
|
|
(30,785)
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
Proceeds from sale of
property and equipment
|
|
|
59
|
|
|
|
68
|
|
Capital
expenditures
|
|
|
(8,120)
|
|
|
|
(7,128)
|
|
Net cash used in
investing activities
|
|
|
(8,061)
|
|
|
|
(7,060)
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
Borrowings on revolving
line of credit
|
|
|
60,000
|
|
|
|
—
|
|
Repayments on revolving
line of credit
|
|
|
(45,000)
|
|
|
|
—
|
|
Cash used in net share
settlement of stock options and restricted stock
|
|
|
(2,383)
|
|
|
|
(379)
|
|
Proceeds received from
employee stock option exercises
|
|
|
16
|
|
|
|
177
|
|
Repurchase and
retirement of common stock
|
|
|
(6,253)
|
|
|
|
(37,287)
|
|
Net cash provided by
(used in) financing activities
|
|
|
6,380
|
|
|
|
(37,489)
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
Net
decrease
|
|
|
(19,832)
|
|
|
|
(75,334)
|
|
Beginning of the
year
|
|
|
25,003
|
|
|
|
100,337
|
|
End of the
year
|
|
$
|
5,171
|
|
|
$
|
25,003
|
|
|
|
|
|
|
|
|
Supplemental schedule of non-cash
activities:
|
|
|
|
|
|
|
Non-cash accruals for
purchases of property and equipment
|
|
$
|
699
|
|
|
$
|
1,303
|
|
Non-GAAP Financial Measures
To supplement our unaudited consolidated condensed financial
statements presented in accordance with generally accepted
accounting principles ("GAAP"), this earnings release and the
related earnings conference call contain certain non-GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted operating
(loss) income, adjusted net (loss) income and adjusted diluted
(loss) earnings per share. These measures are not in accordance
with, and are not intended as alternatives to, GAAP financial
measures. The Company uses these non-GAAP financial measures
internally in analyzing our financial results and believes that
they provide useful information to analysts and investors, as a
supplement to GAAP financial measures, in evaluating the Company's
operational performance.
The Company defines EBITDA as net income or loss before
interest, provision for income tax, and depreciation and
amortization, adjusted EBITDA as EBITDA with non-GAAP adjustments
and adjusted operating (loss) income as operating (loss) income
with non-GAAP adjustments. The Company defines adjusted net (loss)
income and adjusted diluted (loss) earnings per share by adjusting
the applicable GAAP financial measures for non-GAAP
adjustments.
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meanings prescribed
by GAAP. Use of these terms may differ from similar measures
reported by other companies. Each non-GAAP financial measure has
its limitations as an analytical tool, and you should not consider
them in isolation or as a substitute for analysis of the Company's
results as reported under GAAP.
The following table shows a reconciliation of operating (loss)
income to EBITDA, adjusted EBITDA and adjusted operating (loss)
income for the 13-week and 52-week periods ended January 28, 2023 and January 29, 2022 and a reconciliation of net
(loss) income and diluted (loss) earnings per share to adjusted net
(loss) income and adjusted diluted (loss) earnings per share for
the 13-week and 52-week periods ended January 28, 2023 and January 29, 2022:
KIRKLAND'S, INC.
UNAUDITED NON-GAAP MEASURE RECONCILIATION
(In thousands, except per share data)
|
|
|
|
13-Week Period Ended
|
|
|
52-Week Period Ended
|
|
|
|
January 28,
2023
|
|
|
January 29, 2022
|
|
|
January 28, 2023
|
|
|
January 29, 2022
|
|
Operating (loss)
income
|
|
$
|
(3,196)
|
|
|
$
|
14,048
|
|
|
$
|
(42,751)
|
|
|
$
|
25,345
|
|
Depreciation and
amortization
|
|
|
3,597
|
|
|
|
4,896
|
|
|
|
16,522
|
|
|
|
20,431
|
|
EBITDA
|
|
|
401
|
|
|
|
18,944
|
|
|
|
(26,229)
|
|
|
|
45,776
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments in
cost of sales(1)
|
|
|
—
|
|
|
|
894
|
|
|
|
46
|
|
|
|
(738)
|
|
Asset
impairment(2)
|
|
|
1,624
|
|
|
|
—
|
|
|
|
2,071
|
|
|
|
754
|
|
Stock-based
compensation expense(3)
|
|
|
501
|
|
|
|
346
|
|
|
|
1,961
|
|
|
|
1,667
|
|
Severance
charges(4)
|
|
|
63
|
|
|
|
68
|
|
|
|
839
|
|
|
|
361
|
|
Total adjustments in
operating expenses
|
|
|
2,188
|
|
|
|
414
|
|
|
|
4,871
|
|
|
|
2,782
|
|
Total non-GAAP
adjustments
|
|
|
2,188
|
|
|
|
1,308
|
|
|
|
4,917
|
|
|
|
2,044
|
|
Adjusted
EBITDA
|
|
|
2,589
|
|
|
|
20,252
|
|
|
|
(21,312)
|
|
|
|
47,820
|
|
Depreciation and
amortization
|
|
|
3,597
|
|
|
|
4,896
|
|
|
|
16,522
|
|
|
|
20,431
|
|
Adjusted operating
(loss) income
|
|
$
|
(1,008)
|
|
|
$
|
15,356
|
|
|
$
|
(37,834)
|
|
|
$
|
27,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(3,793)
|
|
|
$
|
12,452
|
|
|
$
|
(44,694)
|
|
|
$
|
22,026
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments in
cost of sales(1)
|
|
|
—
|
|
|
|
676
|
|
|
|
35
|
|
|
|
(553)
|
|
Asset
impairment(2)
|
|
|
1,230
|
|
|
|
(3)
|
|
|
|
1,574
|
|
|
|
565
|
|
Stock-based
compensation expense, including tax impact(3)
|
|
|
391
|
|
|
|
201
|
|
|
|
922
|
|
|
|
628
|
|
Severance
charges(4)
|
|
|
39
|
|
|
|
51
|
|
|
|
637
|
|
|
|
271
|
|
Total adjustments in
operating expenses
|
|
|
1,660
|
|
|
|
249
|
|
|
|
3,133
|
|
|
|
1,464
|
|
Tax valuation
allowance(5)
|
|
|
984
|
|
|
|
(1,982)
|
|
|
|
11,134
|
|
|
|
(2,501)
|
|
Total non-GAAP
adjustments, net of tax
|
|
|
2,644
|
|
|
|
(1,057)
|
|
|
|
14,302
|
|
|
|
(1,590)
|
|
Adjusted net (loss)
income
|
|
$
|
(1,149)
|
|
|
$
|
11,395
|
|
|
$
|
(30,392)
|
|
|
$
|
20,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings
per share
|
|
$
|
(0.30)
|
|
|
$
|
0.91
|
|
|
$
|
(3.52)
|
|
|
$
|
1.51
|
|
Adjusted diluted (loss)
earnings per share
|
|
$
|
(0.09)
|
|
|
$
|
0.84
|
|
|
$
|
(2.39)
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
12,754
|
|
|
|
13,623
|
|
|
|
12,703
|
|
|
|
14,615
|
|
|
|
(1)
|
Costs associated with
asset disposals, closed store and lease termination costs and any
gains on lease terminations.
|
(2)
|
Asset impairment
charges are related to property and equipment.
|
(3)
|
Stock-based
compensation expense includes amounts expensed related to equity
incentive plans.
|
(4)
|
Severance charges
include expenses related to severance agreements and permanent
store closure compensation costs.
|
(5)
|
To remove the impact of
the change in the Company's valuation allowance against deferred
tax assets in order to present adjusted results with a normalized
tax rate.
|
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SOURCE Kirkland's, Inc.