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. |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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ITEM 9.01. |
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 December 15, 2020.
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Dated: December 16, 2020
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Kaspien Holding Inc.
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||
By: |
/s/ Edwin Sapienza
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Name:
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Edwin Sapienza | ||
Title:
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Chief Financial Officer |
Exhibit No.
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Description
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Kaspien Holding Inc. press release date December 15, 2020
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2818 N. Sullivan Rd. Ste 30
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Contact:
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Contact:
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Spokane, WA 99216
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Financial Relations Board
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www.kaspien.com
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Ed Sapienza
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Marilynn Meek
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Chief Financial Officer
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(mmeek@frbir.com)
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(518) 452-1242
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(212) 827-3773
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NEWS RELEASE
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• |
Net revenue increased 36.0% to $38.9 million compared to $28.6 million in the third quarter of fiscal 2019. The increase in net revenue was primarily attributable to strength on the Amazon US marketplace.
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• |
Gross profit for the quarter increased 43.1% to $3.9 million, or 10.0% of net revenue as compared to $2.7 million, or 9.5% of net revenue for the third quarter of 2019. The increased profit was primarily
attributable to a reduction in the cost of sales on the Amazon US Platform and operational efficiencies.
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• |
SG&A expenses for the quarter were $4.0 million, a decline of $1.2 million as compared to the third quarter of 2019. The decline in SG&A was due to a decline of $1.1 million in parent company expenses.
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• |
Loss from continuing operations was $0.6 million compared to a loss from continuing operations of $2.9 million for the third quarter of fiscal 2019.
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• |
During the quarter, the Company recorded an income tax benefit of $3.5 million related to the reversal of liabilities related to unrecognized tax benefits related to the fye business that was sold in February 2020.
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• |
Net income for the quarter was $2.6 million, or $1.39 per diluted share compared to a net loss of $23.2 million, or $12.73 per diluted share, for the same period last year. Included in the results for the third
quarter 2019 was a loss from the fye business of $20.1 million.
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• |
Adjusted EBITDA (a non-GAAP measure) was $0.3 million compared to a loss of $1.0 million for the third quarter of fiscal 2019 (see note 1).
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• |
Net revenue for the thirty-nine weeks ended October 31, 2020 increased 15.1% to $112.8 million, compared to $98.0 million for the same period last year. The increase in net revenue was primarily attributable to
strength on the Amazon US marketplace.
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• |
Gross profit for the thirty-nine weeks ended October 31, 2020 increased 35.4% to $11.6 million, or 10.3% of net revenue as compared to $8.6 million, or 8.8% of net revenue for the comparable period of 2019. The
increased profit was primarily attributable to a reduction in the cost of sales on the Amazon US Platform and operational efficiencies.
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• |
SG&A expenses for thirty-nine weeks ended October 31, 2020 were $16.4 million, a decline of $1.6 million as compared to the same period of 2019.
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• |
Loss from continuing operations was $7.4 million compared to $11.2 million for the thirty-nine weeks ended November 2, 2019.
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• |
Net loss was $3.8 million, or $2.06 per diluted share, for the thirty-nine weeks ended October 31, 2020, compared to a net loss of $39.1 million, or $21.51 per diluted share, for the same period last year.
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• |
Adjusted EBITDA (a non-GAAP measure) was $0.9 million compared to a loss of $2.3 million for the same period last year (see note 1).
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• |
Cash, cash equivalents and restricted cash as of October 31, 2020 was $7.4 million, compared to $9.2 million as of November 2, 2019.
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• |
Borrowings under the credit facility at the end of the third quarter were $8.5 million compared to $27.8 million at the end of the third quarter last year. As of October 31, 2020, $3.8 million was available for
borrowing.
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• |
Inventory was $27.2 million at the end of third quarter of 2020 as compared to $22.5 million at the end of the third quarter of 2019.
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STATEMENTS OF OPERATIONS:
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||||||||||||||||||||||||||||||||
(in thousands, except per share data)
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||||||||||||||||||||||||||||||||
Thirteen Weeks Ended
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Thirty-nine Weeks Ended
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|||||||||||||||||||||||||||||||
October 31,
2020
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% to
Revenue
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November 2,
2019
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% to
Revenue
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October 31,
2020
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% to
Revenue
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November 2,
2019
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% to
Revenue
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|||||||||||||||||||||||||
Net revenue
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$
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38,913
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$
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28,616
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$
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112,799
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$
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98,008
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||||||||||||||||||||||||
Cost of sales
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35,022
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90.0
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%
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25,896
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90.5
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%
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101,173
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89.7
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%
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89,424
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91.2
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%
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||||||||||||||||||||
Gross profit
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3,891
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10.0
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%
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2,720
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9.5
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%
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11,626
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10.3
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%
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8,584
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8.8
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%
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||||||||||||||||||||
Selling, general and administrative expenses
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3,956
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10.2
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%
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5,140
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18.0
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%
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16,355
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14.5
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%
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17,940
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18.3
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%
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||||||||||||||||||||
Depreciation and amortization expenses
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547
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1.3
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%
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464
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1.6
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%
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1,554
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1.4
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%
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1,308
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1.3
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%
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||||||||||||||||||||
Loss from continuing operations
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(612
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)
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-1.6
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%
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(2,884
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)
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-10.1
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%
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(6,283
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)
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-5.6
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%
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(10,664
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)
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-10.9
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%
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||||||||||||||||
Interest expense
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381
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1.0
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%
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200
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0.7
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%
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1,016
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0.9
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%
|
508
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0.5
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%
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||||||||||||||||||||
Net loss from continuing operations before income tax benefit
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(993
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)
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-2.6
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%
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(3,084
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)
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-10.8
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%
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(7,299
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)
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-6.5
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%
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(11,172
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)
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-11.4
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%
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||||||||||||||||
Income tax expense (benefit)
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(3,545
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)
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-9.1
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%
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10
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0.0
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%
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(3,545
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)
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-3.1
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%
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26
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0.0
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%
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||||||||||||||||||
Net income (loss) from continuing operations
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2,552
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6.6
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%
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(3,094
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)
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-10.8
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%
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(3,754
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)
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-3.3
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%
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(11,198
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)
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-11.4
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%
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|||||||||||||||||
Net loss from fye business, net of tax
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-
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0.0
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%
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(20,061
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)
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-70.1
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%
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-
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0.0
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%
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(27,887
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)
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-28.5
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%
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||||||||||||||||||
Net income (loss)
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$
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2,552
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6.6
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%
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$
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(23,155
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)
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-80.9
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%
|
$
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(3,754
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)
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-3.3
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%
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$
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(39,085
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)
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-39.9
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%
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|||||||||||||
Basic income (loss) per share
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||||||||||||||||||||||||||||||||
Basic income (loss) per share
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$
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1.40
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$
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(12.73
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)
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$
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(2.06
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)
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$
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(21.51
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)
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|||||||||||||||||||||
Weighted average number of common shares outstanding - basic
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1,825
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1,819
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1,823
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1,817
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||||||||||||||||||||||||||||
Diluted income (loss) per common share:
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||||||||||||||||||||||||||||||||
Diluted income (loss) per share
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$
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1.39
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$
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(12.73
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)
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$
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(2.06
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)
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$
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(21.51
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)
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|||||||||||||||||||||
Weighted average number of common shares outstanding - diluted
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1,829
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1,819
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1,823
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1,817
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SELECTED BALANCE SHEET CAPTIONS:
(in thousands, except store data)
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October 31,
2020
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November 2,
2019
|
||||||
Cash, cash equivalents, and restricted cash
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$
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7,428
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$
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9,162
|
||||
Merchandise inventory
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27,204
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22,522
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||||||
Fixed assets (net)
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2,343
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2,102
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||||||
Accounts payable
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8,559
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10,169
|
||||||
Borrowings under line of credit
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8,483
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27,771
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||||||
Long-term debt
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4,581
|
-
|
|
1. |
Reconciliation of net loss to adjusted EBITDA:
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Thirteen Weeks Ended
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Thirty-nine Weeks Ended
|
|||||||||||||||
(amounts in thousands)
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October 31,
2020
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November 2,
2019
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October 31,
2020
|
November 2,
2019
|
||||||||||||
Net income (loss)
|
$
|
2,552
|
$
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(23,155
|
)
|
$
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(3,754
|
)
|
$
|
(39,085
|
)
|
|||||
Income tax expense (benefit)
|
(3,545
|
)
|
10
|
(3,545
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)
|
26
|
||||||||||
Loss from fye business, net of tax
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-
|
20,061
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-
|
27,887
|
||||||||||||
Interest expense
|
381
|
200
|
1,016
|
508
|
||||||||||||
Loss from continuing operations
|
(612
|
)
|
(2,884
|
)
|
(6,283
|
)
|
(10,664
|
)
|
||||||||
Parent company SG&A expenses
|
380
|
1,465
|
5,589
|
7,025
|
||||||||||||
Depreciation expense
|
547
|
464
|
1,554
|
1,308
|
||||||||||||
Adjusted EBITDA
|
$
|
315
|
$
|
(955
|
)
|
$
|
860
|
$
|
(2,331
|
)
|
•
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Partner Obsession |
•
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Results |
•
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Insights Drive |
•
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Ownership |
•
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Simplicity
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•
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Diversity and Teamwork |
•
|
Innovation |