New York
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0-14818
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14-1541629
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common shares, $0.01 par value per share
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KSPN
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NASDAQ Stock Market
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ITEM 2.02.
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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ITEM 9.01.
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FINANCIAL STATEMENTS AND EXHIBITS
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Exhibit No.
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Description
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99.1
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Kaspien Holding Inc. Press Release dated September 15, 2020.
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Dated: September 16, 2020
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Kaspien Holding Inc.
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By: |
/s/ Edwin Sapienza
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Name: Edwin Sapienza
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Title: Chief Financial Officer
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Exhibit No.
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Description
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Kaspien Holding Inc. press release date September 15, 2020
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Contact:
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Contact:
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Contact:
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Kaspien Holdings Inc.
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Kaspien, Inc
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Financial Relations Board
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Ed Sapienza
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Kunal Chopra
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Joseph Calabrese
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Chief Financial Officer
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Chief Executive Officer
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jcalabrese@fbir.com
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(509) 202-4261
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(425) 281-3566
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(212) 827-3772
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Total revenue increased 23.5% to $42.3 million compared to $34.3 million in the second quarter of fiscal 2019. Increased retail sales were supported by strong growth in the Company’s subscriptions and dropship
businesses.
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Gross profit for the quarter increased 43.3% to $4.4 million, or 10.5% of total revenue as compared to $3.1 million, or 9.0% of total revenue for the second quarter of 2019. The increase in Gross profit as a
percentage of total revenue was due to improved gross margins on the Amazon US Platform, improved operational efficiencies and the addition of new higher gross margin services.
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SG&A expenses for the quarter were $4.9 million, a decline of $1.8 million or 26.3% as compared to the second quarter of 2019. The decline in SG&A was due to a decline of $2.0 million in corporate
expenses. The decline in corporate expenses was related to the sale of the Company’s fye business in February 2020.
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Loss from continuing operations was $0.9 million compared to a loss from continuing operations of $3.8 million for the second quarter of fiscal 2019.
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Net loss was $0.9 million, or $0.49 per share, compared to a net loss of $8.1 million, or $4.48 per share, for the same period last year.
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Adjusted EBITDA (a non-GAAP measure) was $833,000 compared to a loss of $310,000 for the second quarter of fiscal 2019 (see note 1).
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Total revenue for the twenty-six weeks ended August 1, 2020 increased 6.5% to $73.9 million, compared to $69.4 million for the same period last year driven by increased sales on the Amazon US Platform and
growth in the subscriptions business.
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Gross profit for the twenty-six weeks ended August 1, 2020 increased 31.9% to $7.7 million, or 10.5% of total revenue as compared to $5.9 million, or 8.5% of total revenue for the comparable period of 2019. The
increase in Gross profit as a percentage of total revenue was due to improved gross margins on the Amazon US Platform, improved operational efficiencies and the addition of new higher gross margin services.
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SG&A expenses for twenty-six weeks ended August 1, 2020 were $13.4 million a decline of $0.2 million as compared to the comparable period of 2019.
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Loss from continuing operations was $5.7 million compared to $7.8 million for the twenty-six weeks ended August 3, 2019.
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Net loss was $6.3 million, or $3.46 per share, for the twenty-six weeks ended August 1, 2020, compared to a net loss of $15.9 million, or $8.78 per share, for the same period last year.
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Adjusted EBITDA (a non-GAAP measure) was a $544,000 compared to a loss of $1.4 million for the same period last year (see note 1).
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Cash, cash equivalents and restricted cash as of August 1, 2020 was $8.6 million, compared to $9.9 million as of August 3, 2019.
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Borrowings under the credit facility at the end of the second quarter were $2.2 million compared to $12.1 million at the end of the second quarter last year. As of August 1, 2020, $6.5 million was available
for borrowing.
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Inventory was $20.6 million at the end of second quarter of 2020 as compared to $20.2 million at the end of the second quarter of 2019.
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1. |
Reconciliation of net loss to adjusted EBITDA:
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Thirteen Weeks Ended
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Twenty-six Weeks Ended
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|||||||||||||||
(amounts in thousands)
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August 1,
2020
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August 3,
2019
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August 1,
2020
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August 3,
2019
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Net loss
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$
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(899
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)
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$
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(8,128
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)
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$
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(6,306
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)
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$
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(15,930
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)
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Income tax expense
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-
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7
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-
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16
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Loss from fye business, net of tax
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-
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4,370
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-
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7,826
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Interest expense
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406
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172
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634
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308
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Loss from continuing operations
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(493
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)
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(3,579
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)
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(5,672
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)
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(7,780
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)
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Corporate SG&A expenses
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810
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2,833
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5,209
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5,560
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Depreciation expense
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516
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436
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1,007
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844
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Adjusted EBITDA
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$
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833
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$
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(310
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)
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$
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544
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$
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(1,376
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)
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• Partner Obsession
• Insights Driven
• Simplicity
• Innovation
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• Results
• Ownership
• Diversity and Teamwork
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