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Segment reporting (Tables)
12 Months Ended
Apr. 02, 2022
Segment reporting  
Schedule of segment reporting

Fiscal Year Ended April 2, 2022

    

TCS

    

Elfa

    

Eliminations

    

Total

Net sales to third parties

$

1,023,193

$

70,926

$

$

1,094,119

Intersegment sales

 

 

60,794

 

(60,794)

 

Adjusted EBITDA

 

141,217

 

13,114

 

4,678

 

159,009

Depreciation and amortization

 

31,061

 

3,228

 

 

34,289

Interest expense, net

12,488

272

12,760

Capital expenditures (1)

 

29,746

 

3,643

 

 

33,389

Goodwill

 

221,159

 

 

 

221,159

Trade names (1)

 

187,048

 

37,890

 

 

224,938

Assets (1)

1,093,447

107,822

(3,692)

1,197,577

Fiscal Year Ended April 3, 2021

    

TCS

    

Elfa

    

Eliminations

    

Total

Net sales to third parties

$

923,083

$

67,005

$

$

990,088

Intersegment sales

62,918

(62,918)

Adjusted EBITDA

126,543

24,865

(885)

150,523

Depreciation and amortization

31,043

3,688

34,731

Interest expense, net

16,947

321

17,268

Capital expenditures (1)

15,073

2,103

17,176

Goodwill

202,815

202,815

Trade names (1)

187,048

40,621

227,669

Assets (1)

979,411

106,408

(7,350)

1,078,469

Fiscal Year Ended March 28, 2020

    

TCS

    

Elfa

    

Eliminations

    

Total

Net sales to third parties

$

852,349

    

$

63,604

    

$

    

$

915,953

Intersegment sales

 

    

 

61,955

    

 

(61,955)

    

 

Adjusted EBITDA

 

77,156

    

 

16,988

    

 

(3,373)

    

 

90,771

Depreciation and amortization

 

34,608

    

 

4,030

    

 

    

 

38,638

Interest expense, net

21,200

    

341

    

    

21,541

Capital expenditures (1)

30,500

    

 

3,119

    

 

    

 

33,619

Goodwill

202,815

    

 

    

 

    

 

202,815

Trade names (1)

187,048

    

 

35,721

    

 

    

 

222,769

Assets (1)

1,073,888

    

99,587

    

(6,661)

    

1,166,814

(1)Tangible assets and trade names in the Elfa column are located outside of the United States.
Summary of reconciliation of Adjusted EBITDA by segment to income before taxes

A reconciliation of Adjusted EBITDA to income before taxes is set forth below:

Fiscal Year Ended

 

April 2,

    

April 3,

    

March 28,

 

2022

2021

2020

Income before taxes

$

112,694

$

80,843

$

21,202

Add:

 

 

Depreciation and amortization

 

34,289

 

34,731

 

38,638

Interest expense, net

 

12,760

 

17,268

 

21,541

Pre-opening costs (a)

 

694

 

1,026

 

8,237

Non-cash lease expense (b)

 

(7,115)

 

4,147

 

(2,169)

Stock-based compensation (c)

 

4,263

 

7,823

 

3,110

Management transition costs (d)

473

1,200

Loss on extinguishment of debt (e)

 

 

893

 

Foreign exchange (gains) losses (f)

 

(14)

 

200

 

(167)

Elfa France closure (g)

402

Employee retention credit (h)

(1,028)

Acquisition-related costs (i)

745

COVID-19 costs (j)

203

2,266

COVID-19 severance and other costs (credits) (k)

17

1,154

(23)

Adjusted EBITDA

159,009

150,523

90,771

(a)Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation costs. We adjust for these costs to facilitate comparisons of our performance from period to period.
(b)Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. Non-cash lease expense increased in fiscal 2020 due to renegotiated terms with landlords due to COVID-19 that resulted in deferral of $11,900 of certain cash lease payments, which was repaid as of April 2, 2022. In fiscal 2019, lease expenses associated with the opening of the second distribution center were excluded from Non-cash lease expense and included in Pre-opening costs.
(c)Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period.
(d)Costs related to the transition of key executives including signing bonus, severance and relocation expenses recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance.
(e)Loss recorded as a result of the Seventh Amendment made to the Senior Secured Term Loan Facility in December 2020, which we do not consider in our evaluation of our ongoing operations.
(f)Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations.
(g)Charges related to the closure of Elfa France operations in the second quarter of fiscal 2019, which we do not consider in our evaluation of ongoing performance.
(h)Employee retention credit related to the CARES Act recorded in the third quarter of fiscal 2020 as selling, general and administrative expense which we do not consider in our evaluation of ongoing performance.
(i)Includes costs incurred in fiscal 2021 associated with the acquisition of Closet Works on December 30, 2021, all of which are recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance.
(j)Includes incremental costs attributable to the COVID-19 pandemic, which consist of sanitization costs in fiscal 2021 and fiscal 2020, and hazard pay for distribution center employees in the first quarter of fiscal 2020, all of which are recorded as selling, general and administrative expenses which we do not consider in our evaluation of ongoing performance.
(k)Severance and other credits/costs include amounts our management does not consider in our evaluation of our ongoing operations. The fiscal 2020 amounts include costs primarily incurred in the first and second quarters of fiscal 2020 associated with the reduction in workforce as a result of the COVID-19 pandemic and the related temporary store closures in fiscal 2020.
Schedule of sales by merchandise category as a percentage of total net sales

The following table shows sales by merchandise category as a percentage of total net sales for fiscal 2021, fiscal 2020, and 2019:

Fiscal Year Ended

 

April 2,

April 3,

March 28,

 

    

2022

    

2021

    

2020

 

Custom Closets (1)

52

%  

50

%  

51

%   

Kitchen and Trash

 

17

%  

18

%  

14

%  

Storage and Shelving

 

14

%  

14

%  

13

%  

Office, Collections, Hooks

 

7

%  

8

%  

8

%  

Bath, Travel, Laundry

 

6

%  

5

%  

7

%  

Gift Packaging, Seasonal, Impulse

 

3

%  

4

%  

5

%  

Other

 

1

%  

1

%  

2

%  

Total

 

100

%  

100

%  

100

%  

(1)Includes metal-based and wood-based custom space products and in-home services, as well as closet lifestyle department products sold by the TCS segment and Elfa segment sales to third parties.