| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
| |
||
(Address of principal executive offices) |
(Zip Code) | |
| Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
| Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
| ☒ | Smaller reporting company | |||||
| Emerging growth company | ||||||
Page |
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PART I. |
2 |
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Item 1. |
2 |
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2 |
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4 |
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5 |
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6 |
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7 |
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9 |
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Item 2. |
44 |
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Item 3. |
73 |
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Item 4. |
73 |
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PART II. |
75 |
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Item 1. |
75 |
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Item 1A. |
75 |
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Item 2. |
101 |
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Item 3. |
102 |
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Item 4. |
102 |
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Item 5. |
102 |
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Item 6. |
102 |
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103 |
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Item 1. |
Financial Statements. |
(in thousands, except for par value and share data) |
July 4, 2021 |
January 3, 2021 |
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| Assets |
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| Current assets |
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| Cash and cash equivalents |
$ | $ | ||||||
| Restricted cash |
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| Accounts receivable, net |
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| Inventories |
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| Prepaid expenses and other current assets |
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| Total current assets |
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| Property and equipment, net |
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| Operating lease assets |
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| Goodwill |
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| Other intangible assets, net |
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| Equity method investments, net |
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| Deferred tax assets |
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| Other non-current assets |
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| Total non-current assets |
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| Total assets |
$ | $ | ||||||
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| Current liabilities |
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| Accounts payable |
$ | $ | ||||||
| Accrued liabilities |
||||||||
| Current portion of deferred revenue |
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| Indirect and employee taxes payable |
||||||||
| Current portion of debt, net of debt issuance costs |
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| Current portion of related party loans |
||||||||
| Current portion of operating lease liabilities—sites trading less than one year |
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| Current portion of operating lease liabilities—sites trading more than one year |
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| Other current liabilities |
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| Total current liabilities |
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| Debt, net of current portion and debt issuance costs |
||||||||
| Property mortgage loans, net of debt issuance costs |
||||||||
| Related party loans, net of current portion and imputed interest |
||||||||
| Operating lease liabilities, net of current portion - sites trading less than one year |
||||||||
| Operating lease liabilities, net of current portion - sites trading more than one year |
||||||||
| Finance lease liabilities |
||||||||
| Financing obligation |
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| Deferred revenue, net of current portion |
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| Deferred tax liabilities |
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| Other non-current liabilities |
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| Total non-current liabilities |
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| Total liabilities |
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(in thousands, except for par value and share data) |
July 4, 2021 |
January 3, 2021 |
||||||
| Senior convertible preference shares, £ |
||||||||
| Redeemable C ordinary shares, £ |
||||||||
| Shareholders’ deficit |
||||||||
| A ordinary shares, £ |
||||||||
| Additional paid-in capital |
||||||||
| Accumulated deficit |
( |
) | ( |
) | ||||
| Accumulated other comprehensive income (loss) |
( |
) | ||||||
| Total shareholders’ deficit attributable to Membership Collective Group Inc. |
( |
) | ( |
) | ||||
| Noncontrolling interest |
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| Total shareholders’ deficit |
( |
) | ( |
) | ||||
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| Total liabilities, redeemable shares and shareholders’ deficit |
$ | $ | ||||||
| |
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|||||
(in thousands except for per share data) |
13 Weeks Ended |
26 Weeks Ended |
||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
Revenues |
||||||||||||||||
Membership revenues |
$ | $ | $ | $ | ||||||||||||
In-House revenues |
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Other revenues |
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Total revenues |
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Operating expenses |
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In-House operating expenses (exclusive of depreciation and amortization of $ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other operating expenses (exclusive of depreciation and amortization of $ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Pre-opening expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Depreciation and amortization |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Operating loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other (expense) income |
||||||||||||||||
Interest expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Gain (loss) on sale of property and other, net |
( |
) | ( |
) | ||||||||||||
Share of loss of equity method investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total other expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loss before income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax (expense) benefit |
( |
) | ||||||||||||||
Net loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Net loss attributable to noncontrolling interests |
||||||||||||||||
Net loss attributable to Membership Collective Group Inc. |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
Net loss attributable to A ordinary, B ordinary, C ordinary, and C2 ordinary shareholders |
||||||||||||||||
Basic and diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
(in thousands) |
13 Weeks Ended |
26 Weeks Ended |
||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
| Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Other comprehensive income |
||||||||||||||||
| Foreign currency translation adjustment |
( |
) | ||||||||||||||
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| Comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Loss attributable to noncontrolling interest |
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| Foreign currency translation adjustment attributable to noncontrolling interest |
( |
) | ( |
) | ||||||||||||
| |
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| Total comprehensive loss attributable to Membership Collective Group Inc. |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| |
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Redeemable Preferred Shares |
Redeemable C Ordinary Shares |
Ordinary Shares |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands except for share data) |
Shares |
Amount |
Shares |
Amount |
A Ordinary Shares |
B Ordinary Shares |
C Ordinary Shares |
C2 Ordinary Shares |
D Ordinary Shares |
Amount |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Deficit Attributable to Membership Collective Group Inc. |
Noncontrolling Interest |
Total Shareholders’ Deficit |
||||||||||||||||||||||||||||||||||||||||||||||||
| As of December 29, 2019 |
$ | $ | — | — | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net loss |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net change in cumulative translation adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
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| As of March 29, 2020 |
$ |
$ |
— |
— |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
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| Net loss |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Conversion of related party loan to A ordinary shares |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of redeemable C ordinary shares |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Redeemable C ordinary shares issuance costs |
— | — | — | ( |
) | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Net change in cumulative translation adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
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| As of June 28, 2020 |
$ |
$ |
— |
— |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||||||||||||||||||||||||||||||
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| As of January 3, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net loss |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of senior convertible preference shares (Note 15) |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior convertible preference shares issuance costs |
— | ( |
) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of redeemable C ordinary shares (Note 16) |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation, net of tax |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net change in cumulative translation adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| As of April 4, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||||||||||||||||||||||||||||||||
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| Net loss |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interest |
— | — | — | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash dividends on senior convertible preference shares |
— | — | — | — | — | — | — | — | — | ( |
) | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| C2 ordinary shares issued in connection with the Cipura Acquisition (Note 3) |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| C2 ordinary shares issued in connection with the Mandolin Acquisition (Note 3) |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of Soho Works North America noncontrolling interests (Note 3) |
— | — | — | — | — | — | — | — | — | — | ( |
) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of Scorpios noncontrolling interests (Note 3) |
— | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| C2 ordinary shares issued in connection with the Line and Saguaro Acquisition (Note 3) |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Accretion of redeemable preferred shares to redemption value, net of foreign currency remeasurement gain |
— | — | — | — | — | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation, net of tax |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net change in cumulative transition adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
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| As of July 4, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||
(in thousands) |
26 Weeks Ended |
|||||||
July 4, 2021 |
June 28, 2020 |
|||||||
Cash flows from operating activities |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities |
||||||||
Depreciation and amortization |
||||||||
Share-based compensation, net of tax |
||||||||
Income tax benefit |
( |
) | ( |
) | ||||
(Gain) loss on disposal of property and other, net |
( |
) | ||||||
Share of loss of equity method investments |
||||||||
Amortization of debt issuance costs |
||||||||
Loss on debt extinguishment |
||||||||
Imputed interest on interest free related party loans |
||||||||
PIK interest settled on extinguishment, net of non-cash interest |
( |
) | ||||||
Distributions from equity method investees |
||||||||
Loss on foreign currency exchange rates |
||||||||
Guarantee provision |
||||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
( |
) | ||||||
Operating leases, net |
||||||||
Other operating assets |
( |
) | ( |
) | ||||
Deferred revenue |
( |
) | ( |
) | ||||
Accounts payable and accrued and other liabilities |
||||||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
Cash flows from investing activities |
||||||||
Purchase of property and equipment |
( |
) | ( |
) | ||||
Purchase of intangible assets |
( |
) | ( |
) | ||||
Cash acquired in the Cipura Acquisition (Note 3) |
||||||||
Acquisition of noncontrolling interests (Note 3) |
( |
) | ||||||
Investments in equity method investees |
( |
) | ||||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities |
||||||||
Repayment of borrowings |
( |
) | ||||||
Payment for debt extinguishment costs |
( |
) | ||||||
Issuance of related party loans |
— |
|||||||
Proceeds from borrowings |
||||||||
Payments for debt issuance costs |
( |
) | ( |
) | ||||
Principal payments on finance leases |
( |
) | ( |
) | ||||
Proceeds from financing obligation |
||||||||
Principal payments on financing obligation |
( |
) | ( |
) | ||||
Distributions to noncontrolling interest |
( |
) | ( |
) | ||||
Contributions from noncontrolling interest |
||||||||
Senior convertible preference shares issued, net of issuance costs (Note 15) |
||||||||
Proceeds from issuance of redeemable C ordinary shares, net of issuance costs (Note 16) |
||||||||
Net cash provided by financing activities |
||||||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
( |
) | ||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash |
( |
) | ||||||
Cash, cash equivalents and restricted cash |
||||||||
Beginning of period |
||||||||
End of period |
$ |
$ |
||||||
(in thousands) |
26 Weeks Ended |
|||||||
July 4, 2021 |
June 28, 2020 |
|||||||
Cash, cash equivalents and restricted cash are comprised of: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash in current assets |
||||||||
Cash, cash equivalents and restricted cash as of July 4, 2021 and June 28, 2020 |
$ |
$ |
||||||
Supplemental disclosures: |
||||||||
Cash paid for interest (including settlement of paid-in-kind |
$ | $ | ||||||
Cash paid for income taxes |
||||||||
Supplemental disclosures of non-cash investing and financing activities: |
||||||||
C2 ordinary shares issued in exchange for acquisitions of businesses and noncontrolling interests (Note 3) |
$ | $ | ||||||
Conversion of related party loan to A ordinary shares |
||||||||
Operating lease assets obtained in exchange for new operating lease liabilities |
||||||||
Non-cash dividends on senior convertible preference shares (Note 15) |
— |
|||||||
Accrued capital expenditures |
||||||||
1. |
Nature of the Business |
2. |
Summary of Significant Accounting Policies |
| • | the timing of re-opening of Houses in a manner that is compliant with local laws and regulations, including the relaxing of mandatory capacity constraints, as well as anticipated demand; |
| • | the level of in-House sales activity (primarily sales of food and beverage) that, even after opening, may be subject to reduced capacity as a result of on-going restrictions; |
| • | the continued high level of membership retention and renewals (which has been evidenced throughout the pandemic); and |
| • | the implementation of extensive cost reduction measures that continue to support the timing of House re-openings and anticipated levels of capacity. |
3. |
Acquisitions |
4. |
Consolidated Variable Interest Entities |
July 4, 2021 (1) |
January 3, 2021 |
|||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
— | |||||||
Accounts receivable |
||||||||
Inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
Total current assets |
||||||||
Property and equipment, net |
||||||||
Operating lease assets |
||||||||
Other intangible assets, net |
||||||||
Other non-current assets |
||||||||
Total assets |
$ |
$ |
||||||
Accounts payable |
||||||||
Accrued liabilities |
||||||||
Indirect and employee taxes payable |
||||||||
Current portion of operating lease liabilities - sites trading less than one year |
||||||||
Current portion of operating lease liabilities - sites trading more than one year |
||||||||
Other current liabilities |
||||||||
Total current liabilities |
||||||||
Debt |
||||||||
Operating lease liabilities, net of current portion - sites trading less than one year |
||||||||
Operating lease liabilities, net of current portion - sites trading more than one year |
||||||||
Other non-current liabilities |
||||||||
Total liabilities |
$ |
$ |
||||||
Net assets |
$ |
$ |
||||||
(1) |
Amounts as of July 4, 2021 include balances related to SWNA following the Soho Works Acquisition, as this entity continues to be thinly capitalized. |
5. |
Equity Method Investments |
(in thousands) |
13 Weeks Ended |
26 Weeks Ended |
||||||||||||||
July 4, 2021 (1) |
June 28, 2020 |
July 4, 2021 (1) |
June 28, 2020 |
|||||||||||||
Revenues |
$ | $ | $ | $ | ||||||||||||
Operating loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net loss (2) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
(1) |
Includes the financial information of Cipura through May 10, 2021. |
(2) |
The net loss shown above relates entirely to continuing operations. |
(in thousands) |
As of |
|||||||
July 4, 2021 (1) |
January 3, 2021 |
|||||||
Current assets |
$ | $ | ||||||
Non-current assets |
||||||||
Total assets |
$ |
$ |
||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Total liabilities |
$ |
$ |
||||||
(1) |
Excludes the financial information of Cipura, which ceased to be an equity method investee on May 10, 2021 as a result of the Cipura Acquisition, as described in Note 3, Acquisitions. |
6. |
Leases |
(in thousands) Fiscal year ending |
Operating Leases |
Finance Leases |
||||||
Undiscounted lease payments |
||||||||
Remainder of 2021 |
$ | $ | ||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
Thereafter |
||||||||
Total undiscounted lease payments |
||||||||
Present value adjustment |
||||||||
Total net lease liabilities |
$ |
$ |
||||||
(in thousands) |
26 Weeks Ended |
|||||||
July 4, 2021 |
June 28, 2020 |
|||||||
Cash flows from operating activities |
||||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows from operating leases |
$ | ( |
) | $ | ( |
) | ||
Interest payments for finance leases |
( |
) | ( |
) | ||||
Cash flows from financing activities related to leases |
||||||||
Principal payments for finance leases |
$ | ( |
) | $ | ( |
) | ||
Supplemental disclosures of non-cash investing and financing activities: |
||||||||
Operating lease assets obtained in exchange for new operating lease liabilities |
$ | $ | ||||||
26 Weeks Ended |
||||||||
July 4, 2021 |
June 28, 2020 |
|||||||
| Weighted-average remaining lease term |
||||||||
| Finance leases |
||||||||
| Operating leases |
||||||||
| Weighted-average discount rate |
||||||||
| Finance leases |
% | % | ||||||
| Operating leases |
% | % | ||||||
(in thousands) |
Operating Leases Under |
|||
Fiscal year ending |
Construction |
|||
| Estimated total undiscounted lease payments |
||||
| Remainder of 2021 |
$ | |||
| 2022 |
||||
| 2023 |
||||
| 2024 |
||||
| 2025 |
||||
| Thereafter |
||||
| |
|
|||
| Total undiscounted lease payments expected to be capitalized |
$ |
|||
| |
|
|||
7. |
Revenue Recognition |
(in thousands) |
Next twelve months from July 4, 2021 |
Future periods |
||||||
| Membership and registration fees |
$ | $ | ||||||
| |
|
|
|
|||||
| Total future revenues |
$ |
$ |
||||||
| |
|
|
|
|||||
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
| Contract receivables |
$ | $ | ||||||
| Contract assets |
||||||||
| Contract liabilities |
||||||||
| Inventories, Prepaid Expenses and Other Current Assets |
(in thousands) |
April 4, 2021 |
January 3, 2021 |
||||||
Amounts owed by equity method investees |
$ | $ | ||||||
Prepayments and accrued income |
||||||||
Contract assets |
||||||||
Other receivables |
||||||||
Total prepaid expenses and other current assets |
$ |
$ |
||||||
9. |
Property and Equipment, Net |
10. |
Goodwill and Intangible Assets |
(in thousands) |
UK |
US |
Europe and RoW |
Total |
||||||||||||
January 3, 2021 |
$ |
$ |
$ |
$ |
||||||||||||
Cipura Acquisition (Note 3) |
— | — | ||||||||||||||
Line and Saguaro Acquisition (Note 3) |
— | — | ||||||||||||||
Foreign currency translation adjustment |
— | ( |
) | ( |
) | |||||||||||
July 4, 2021 |
$ |
$ |
$ |
$ |
||||||||||||
11. |
Accrued Liabilities and Other Current Liabilities |
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
Accrued interest |
$ | $ | ||||||
Hotel deposits |
||||||||
Trade, capital and other accruals |
||||||||
$ |
$ |
|||||||
12. |
Debt |
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
Revolving credit facilities, interest at (1) |
$ | $ | ||||||
Permira Senior Facility, interest at |
— | |||||||
US government-backed bank loan, interest at |
— | |||||||
Senior Secured Notes, interest at |
— | |||||||
Other loans (see additional description below) |
||||||||
Less: Current portion of long-term debt |
( |
) | ( |
) | ||||
Total long-term debt, net of current portion |
$ |
$ |
||||||
(1) |
The Company does not believe that there are any material potential effects on financial reporting of the market-wide migration away from LIBOR, which is expected to be phased out at the end of calendar year 2021, to alternative reference rates. The Company plans to either repay its outstanding debt balances with associated LIBOR rates prior to the end of calendar year 2021 or to replace the LIBOR benchmark rate with another benchmark rate, such as the SONIA. Refer to Note 22, Subsequent Events for further information. |
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
Term loan, interest at |
$ | $ | ||||||
Mezzanine loan, interest at |
||||||||
Total property mortgage loans |
$ |
$ |
||||||
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
Related party loans, unsecured, |
$ | $ | ||||||
Related party loans, unsecured, |
||||||||
Less: Current portion of related party loans |
( |
) | ( |
) | ||||
Total related party loans, net of current portion |
$ |
$ |
||||||
Currency |
Maturity date |
Principal balance as of July 4, 2021 |
Applicable interest rate as of July 4, 2021 |
|||||||||||||
Greek Street loan |
$ | % | ||||||||||||||
Soho House Hong Kong loan (1) |
% | |||||||||||||||
Compagnie de Phalsbourg credit facility |
% | |||||||||||||||
Optima Bank loan |
% | |||||||||||||||
Greek government loan |
% | |||||||||||||||
(1) |
The Company must comply with certain financial covenants, including the requirement that the Company maintain certain minimum EBITDA levels, calculated pursuant to the Soho House Hong Kong loan agreement; the minimum EBITDA requirement was not met as of January 3, 2021. In June 2021, the creditor of the Soho House Hong Kong Loan waived the existing covenant breach and the ongoing minimum EBITDA requirements until January 3, 2022. |
(in thousands) |
||||
| Remainder of 2021 |
$ | |||
| 2022 |
||||
| 2023 |
||||
| 2024 |
||||
| 2025 |
||||
| Thereafter |
||||
| |
|
|||
$ |
||||
| |
|
|||
13. |
Fair Value Measurements |
(in thousands) |
Carrying Value |
Fair Value |
||||||
| July 4, 2021 |
||||||||
| Related party loans |
$ | $ | ||||||
| Senior Secured Notes |
||||||||
| Property mortgage loans |
||||||||
| Other non-current debt |
||||||||
| |
|
|
|
|||||
$ |
$ |
|||||||
| |
|
|
|
|||||
| (in thousands) |
Carrying Value |
Fair Value |
||||||
| January 3, 2021 |
||||||||
| Related party loans |
$ | $ | ||||||
| Permira Senior Facility |
||||||||
| US government-backed bank loan |
||||||||
| Property mortgage loans |
||||||||
| Other non-current debt |
||||||||
| |
|
|
|
|||||
$ |
$ |
|||||||
| |
|
|
|
|||||
14. |
Share-Based Compensation |
(in thousands) |
13 Weeks Ended July 4, 2021 |
26 Weeks Ended July 4, 2021 |
||||||
SARs |
$ | $ | ||||||
Growth Shares |
||||||||
Total share-based compensation expense |
||||||||
Tax benefit for share-based compensation expense |
||||||||
Share-based compensation expense, net of tax |
$ |
$ |
||||||
15. |
Redeemable Preferred Shares |
16. |
C Ordinary Shares |
17. |
Loss Per Share and Shareholders’ Deficit |
13 Weeks Ended July 4, 2021 |
||||||||||||||||
(in thousands except share and per share amounts) |
A Ordinary Shares |
B Ordinary Shares |
C Ordinary Shares |
C2 Ordinary Shares |
||||||||||||
| Computation of basic and diluted loss per share |
||||||||||||||||
| Net loss attributable to Membership Collective Group Inc. |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Less: Cumulative May 2016 preferred shares undeclared dividends |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Less: Incremental accretion of May 2016 preferred shares to redemption value |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Add: Foreign currency remeasurement of redeemable preferred shares |
||||||||||||||||
| Less: Non-cash dividends on the Senior Preference Shares |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss adjusted for preferred shares dividends |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding for basic and diluted loss per share |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Basic and diluted loss per share |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
13 Weeks Ended June 28, 2020 |
||||||||||||||||
(in thousands except share and per share amounts) |
A Ordinary Shares |
B Ordinary Shares |
C Ordinary Shares |
C2 Ordinary Shares |
||||||||||||
| Computation of basic and diluted loss per share |
||||||||||||||||
| Net loss attributable to Membership Collective Group Inc. |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Less: Cumulative preferred shares undeclared dividends |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss adjusted for preferred shares dividends |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding for basic and diluted loss per share |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Basic and diluted loss per share |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
26 Weeks Ended July 4, 2021 |
||||||||||||||||
(in thousands except share and per share amounts) |
A Ordinary Shares |
B Ordinary Shares |
C Ordinary Shares |
C2 Ordinary Shares |
||||||||||||
| Computation of basic and diluted loss per share |
||||||||||||||||
| Net loss attributable to Membership Collective Group Inc. |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Less: Cumulative May 2016 preferred shares undeclared dividends |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Less: Incremental accretion of preferred shares to redemption value |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Add: Foreign currency remeasurement of redeemable preferred shares |
||||||||||||||||
| Less: Non-cash dividends on the Senior Preference Shares |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss adjusted for preferred shares dividends |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding for basic and diluted loss per share |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Basic and diluted loss per share |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
26 Weeks Ended June 28, 2020 |
||||||||||||||||
(in thousands except share and per share amounts) |
A Ordinary Shares |
B Ordinary Shares |
C Ordinary Shares |
C2 Ordinary Shares |
||||||||||||
| Computation of basic and diluted loss per share |
||||||||||||||||
| Net loss attributable to Membership Collective Group Inc. |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Less: Cumulative preferred shares undeclared dividends |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss adjusted for preferred shares dividends |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding for basic and diluted earnings per share |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Basic and diluted loss per share |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
18. |
Commitments and Contingencies |
19. |
Income Taxes |
20. |
Segments |
| • | UK, |
| • | North America, |
| • | Europe and RoW, |
| • | Soho House Design. |
(in thousands) |
13 Weeks Ended July 4, 2021 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Membership revenues |
$ |
$ |
$ |
$ |
— |
$ |
$ |
$ |
||||||||||||||||||||
| In-House revenues |
— |
— |
||||||||||||||||||||||||||
| Other revenues |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total segment revenue |
||||||||||||||||||||||||||||
| Elimination of equity accounted revenue |
( |
) | ( |
) |
( |
) |
— |
( |
) | — |
( |
) | ||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Consolidated revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in thousands) |
13 Weeks Ended June 28, 2020 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Membership revenues |
$ |
$ |
$ |
$ |
— |
$ |
$ |
$ |
||||||||||||||||||||
| In-House revenues |
— |
— |
— |
|||||||||||||||||||||||||
| Other revenues |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total segment revenue |
||||||||||||||||||||||||||||
| Elimination of equity accounted revenue |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | ||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Consolidated revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in thousands) |
26 Weeks Ended July 4, 2021 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Membership revenues |
$ |
$ |
$ |
$ |
— |
$ |
$ |
$ |
||||||||||||||||||||
| In-House revenues |
— |
— |
||||||||||||||||||||||||||
| Other revenues |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total segment revenue |
||||||||||||||||||||||||||||
| Elimination of equity accounted revenue |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | ||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Consolidated revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in thousands) |
26 Weeks Ended June 28, 2020 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Membership revenues |
$ |
$ |
$ |
$ |
— |
$ |
$ |
$ |
||||||||||||||||||||
| In-House revenues |
— |
— |
||||||||||||||||||||||||||
| Other revenues |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total segment revenue |
||||||||||||||||||||||||||||
| Elimination of equity accounted revenue |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | ||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Consolidated revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in thousands) |
13 Weeks Ended July 4, 2021 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Total consolidated segment revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| Total segment operating expenses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
| Share of equity method investments adjusted EBITDA |
— |
— |
||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Reportable segments adjusted EBITDA |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||
| Unallocated corporate overhead |
( |
) | ||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
| Consolidated adjusted EBITDA |
( |
) | ||||||||||||||||||||||||||
| Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
| Interest expense, net |
( |
) | ||||||||||||||||||||||||||
| Income tax expense |
( |
) | ||||||||||||||||||||||||||
| Gain on sale of property and other, net |
||||||||||||||||||||||||||||
| Share of loss of equity method investments |
( |
) | ||||||||||||||||||||||||||
| Foreign exchange |
( |
) | ||||||||||||||||||||||||||
| Pre-opening expenses |
( |
) | ||
| Non-cash rent |
||||
| Deferred registration fees, net |
( |
) | ||
| Share of equity method investments adjusted EBITDA |
( |
) | ||
| Share-based compensation expense |
( |
) | ||
| Other expenses, net |
( |
) | ||
| |
|
|||
| Net loss |
$ |
( |
) | |
| |
|
13 Weeks Ended June 28, 2020 |
||||||||||||||||||||||||||||
(in thousands) |
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
|||||||||||||||||||||
| Total consolidated segment revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| Total segment operating expenses |
( |
) | ( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
| Share of equity method investments adjusted EBITDA |
( |
) |
— |
— |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Reportable segments adjusted EBITDA |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
| Unallocated corporate overhead |
( |
) | ||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
| Consolidated adjusted EBITDA |
( |
) | ||||||||||||||||||||||||||
| Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
| Interest expense, net |
( |
) | ||||||||||||||||||||||||||
| Income tax benefit |
||||||||||||||||||||||||||||
| Loss on sale of property and other, net |
( |
) | ||||||||||||||||||||||||||
| Share of loss of equity method investments |
( |
) | ||||||||||||||||||||||||||
| Foreign exchange |
( |
) | ||||||||||||||||||||||||||
| Pre-opening expenses |
( |
) | ||||||||||||||||||||||||||
| Non-cash rent |
( |
) | ||||||||||||||||||||||||||
| Deferred registration fees, net |
||||||||||||||||||||||||||||
| Share of equity method investments adjusted EBITDA |
( |
) | ||||||||||||||||||||||||||
| Other expenses, net |
( |
) | ||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
| Net loss |
$ |
( |
) | |||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
(in thousands) |
26 Weeks Ended July 4, 2021 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Total consolidated segment revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| Total segment operating expenses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
| Share of equity method investments adjusted EBITDA |
( |
) |
— |
— |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Reportable segments adjusted EBITDA |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||
| Unallocated corporate overhead |
( |
) | ||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
| Consolidated adjusted EBITDA |
( |
) | ||||||||||||||||||||||||||
| Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
| Interest expense, net |
( |
) | ||||||||||||||||||||||||||
| Income tax benefit |
||||||||||||||||||||||||||||
| Gain on sale of property and other, net |
||||||||||||||||||||||||||||
| Share of loss of equity method investments |
( |
) | ||||||||||||||||||||||||||
| Foreign exchange (1) |
( |
) | ||||||||||||||||||||||||||
| Pre-opening expenses |
( |
) | ||||||||||||||||||||||||||
| Non-cash rent |
( |
) | ||||||||||||||||||||||||||
| Deferred registration fees, net |
||||||||||||||||||||||||||||
| Share of equity method investments adjusted EBITDA |
( |
) | ||||||||||||||||||||||||||
| Share-based compensation expense |
( |
) | ||||||||||||||||||||||||||
| Other expenses, net |
( |
) | ||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net loss |
$ |
( |
) | |||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) |
Includes the effect of a prior-period error correction, as discussed in Note 2, Summary of Significant Accounting Policies – Basis of Presentation. |
(in thousands) |
26 Weeks Ended June 28, 2020 |
|||||||||||||||||||||||||||
North America |
UK |
Europe & RoW |
Soho House Design |
Reportable Segment Total |
All Other |
Total |
||||||||||||||||||||||
| Total consolidated segment revenue |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
| Total segment operating expenses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
| Share of equity method investments adjusted |
||||||||||||||||||||||||||||
| EBITDA |
( |
) |
— |
— |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Reportable segments adjusted EBITDA |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
| Unallocated corporate overhead |
( |
) | ||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
| Consolidated adjusted EBITDA |
||||||||||||||||||||||||||||
| Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
| Interest expense, net |
( |
) | ||||||||||||||||||||||||||
| Income tax benefit |
||||||||||||||||||||||||||||
| Loss on sale of property and other, net |
( |
) | ||||||||||||||||||||||||||
| Share of loss of equity method investments |
( |
) | ||||||||||||||||||||||||||
| Foreign exchange |
( |
) | ||||||||||||||||||||||||||
| Pre-opening expenses |
( |
) | ||||||||||||||||||||||||||
| Non-cash rent |
( |
) | ||||||||||||||||||||||||||
| Deferred registration fees, net |
( |
) | ||||||||||||||||||||||||||
| Share of equity method investments adjusted EBITDA |
( |
) | ||||||||||||||||||||||||||
| Other expenses, net |
( |
) | ||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
| Net loss |
$ |
( |
) | |||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||
(in thousands) |
13 Weeks Ended |
26 Weeks Ended |
||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
| Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Depreciation and amortization |
||||||||||||||||
| Interest expense, net |
||||||||||||||||
| Income tax expense (benefit) |
( |
) | ( |
) | ( |
) | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| EBITDA |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| (Gain) loss on sale of property and other, net |
( |
) | ( |
) | ||||||||||||
| Share of loss of equity method investments |
||||||||||||||||
| Foreign exchange |
||||||||||||||||
| Pre-opening expenses (1) |
||||||||||||||||
| Non-cash rent |
( |
) | ||||||||||||||
| Deferred registration fees, net |
( |
) | ( |
) | ||||||||||||
| Share of equity method investments adjusted EBITDA |
||||||||||||||||
| Share-based compensation expense, net of tax |
— | — | ||||||||||||||
| Other expenses, net (2) |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
||||||
| |
|
|
|
|
|
|
|
|||||||||
(1) |
The entire balance of these costs is related to pre-opening activities for our Houses in each of the periods presented. |
(2) |
Represents other items included in operating expenses, which are outside the normal scope of the Company’s ordinary activities or non-cash, including expenses incurred in respect of membership credits of $IPO-related costs of $ |
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
| Long-lived assets by geography |
||||||||
| United Kingdom |
$ | $ | ||||||
| North America |
||||||||
| All other foreign countries |
||||||||
| |
|
|
|
|||||
| Total long-lived assets |
$ |
$ |
||||||
| |
|
|
|
|||||
21. |
Related Party Transactions |
(in thousands) |
July 4, 2021 |
January 3, 2021 |
||||||
| Soho House Toronto Partnership |
$ | ( |
) | $ | ( |
) | ||
| Soho House—Cipura (Miami), LLC |
— | |||||||
| Raycliff Red LLP |
( |
) | ( |
) | ||||
| Mirador Barcel S.L. |
||||||||
| Little Beach House Barcelona S.L. |
||||||||
| Mimea XXI S.L. |
||||||||
| |
|
|
|
|||||
$ |
( |
) |
$ |
( |
) | |||
| |
|
|
|
|||||
22. |
Subsequent Events |
| • | Affiliates of The Yucaipa Companies, LLC, and Messrs. Ron Burkle, Nick Jones, and Richard Caring exchanged their equity interests in Soho House Holdings Limited for |
| • | The other existing equity holders of Soho House Holdings Limited exchanged their equity interests for |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
| • | Membership: |
| • | Physical and digital spaces: |
| • | Design: |
| • | Services, products and experiences: |
| • | Innovation: |
| • | House Foundations: |
| • | Cities Without Houses |
| • | Soho House Digital Membership |
| • | Soho Friends |
| • | The ability to grow our member base. In-House Revenue growth. The impact of long-term member growth on Membership Revenues can be particularly impactful to our earnings given the lower direct expenses associated with incremental Membership Revenues relative to our other revenue streams. |
| • | Our ability to grow In-House RevenuesIn-House Revenues. We continue to actively develop the offerings in our Soho Houses and our other membership brands to improve overall experience and capture greater spend on food and beverage, accommodation, spa services, private events and our other goods and services. We believe that the pricing of our In-House offerings, which is reflective of the membership fees we receive from members who consume most of our In-House offerings, represents great value to our members for the level of quality provided, reinforcing the overall membership experience, rewarding brand loyalty and creating the opportunity for future revenue enhancement. Our proven ability to drive long-term member growth at existing Houses is also an important contributing factor in sustaining In-House Revenue growth. |
| • | Our ability to adjust membership pricing |
| • | Our ability to grow our membership brands and products |
As of |
||||||||
July 4, 2021 |
June 28, 2020 |
|||||||
(Unaudited) |
||||||||
| Number of Soho Houses |
30 |
26 |
||||||
| North America |
11 | 9 | ||||||
| United Kingdom |
11 | 10 | ||||||
| Europe/RoW |
8 | 7 | ||||||
| Number of Soho House Members |
111,910 |
120,082 |
||||||
| North America |
42,296 | 46,060 | ||||||
| United Kingdom |
45,277 | 46,961 | ||||||
| Europe/RoW |
19,750 | 21,770 | ||||||
| All Other |
4,587 | 5,291 | ||||||
| Number of Other Members |
15,930 |
129 |
||||||
| North America |
3,268 | 0 | ||||||
| United Kingdom |
12,012 | 129 | ||||||
| Europe/RoW |
650 | 0 | ||||||
| Number of Active App Users |
94,678 |
71,956 |
||||||
13-Weeks Ended |
13-Weeks Ended |
26-Weeks Ended |
26-Weeks Ended |
|||||||||||||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||||||||||||||
Actuals |
Actuals |
Constant Currency (1) |
Actuals |
Actuals |
Constant Currency (1) |
|||||||||||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||||||||||||||
| Operating Loss |
(46,860 |
) |
(58,089 |
) |
(46,860 |
) |
(66,096 |
) |
(110,420 |
) |
(85,241 |
) |
(110,420 |
) |
(94,464 |
) | ||||||||||||||||
| Operating Loss Margin |
(38 | )% | n/m | (38 | )% | n/m | (56 | )% | (43 | )% | (56 | )% | (43 | )% | ||||||||||||||||||
| House-Level Contribution |
16,743 |
18,040 |
16,743 |
20,526 |
26,866 |
37,392 |
26,866 |
41,437 |
||||||||||||||||||||||||
| House-Level Contribution margin |
19 | % | 38 | % | 19 | % | 38 | % | 19 | % | 23 | % | 19 | % | 23 | % | ||||||||||||||||
| Other Contribution |
(3,779 |
) |
(9,791 |
) |
(3,779 |
) |
(11,141 |
) |
(15,503 |
) |
(9,189 |
) |
(15,503 |
) |
(10,183 |
) | ||||||||||||||||
| Other Contribution Margin |
(10 | )% | (100 | )% | (10 | )% | (100 | )% | (29 | )% | (25 | )% | (29 | )% | (25 | )% | ||||||||||||||||
| Adjusted EBITDA |
(12,556 |
) |
(19,680 |
) |
(12,556 |
) |
(22,393 |
) |
(35,348 |
) |
(28,623 |
) |
(35,348 |
) |
(31,720 |
) | ||||||||||||||||
| As a percentage of Total Revenue |
(10 | )% | (35 | )% | (10 | )% | (35 | )% | (18 | )% | (14 | )% | (18 | )% | (14 | )% | ||||||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Constant Currency change % (1) |
|||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
June 28, 2020, Constant Currency (1) |
||||||||||||||||||
Actuals |
||||||||||||||||||||
(Dollar amounts in thousands) |
Change % |
(Dollar amounts in thousands) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
| Revenues |
||||||||||||||||||||
| Membership Revenues |
44,863 | 44,456 | 1 | % | 50,583 | (11 | )% | |||||||||||||
| In-House Revenues |
45,793 | 3,111 | n/m | 3,540 | n/m | |||||||||||||||
| Other Revenues |
33,423 | 9,437 | |
n/m |
|
10,738 | n/m | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Revenues |
124,079 | 57,004 | |
n/m |
|
64,861 | 91 | % | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Expenses |
||||||||||||||||||||
| In-House operating expenses (exclusive of depreciation and amortization) |
(70,430 | ) | (29,194 | ) | |
n/m |
|
(33,218 | ) | |
n/m |
| ||||||||
| Other operating expenses (exclusive of depreciation and amortization) |
(40,685 | ) | (19,561 | ) | |
n/m |
|
(22,257 | ) | 83 | % | |||||||||
| General and administrative expenses |
(19,500 | ) | (15,702 | ) | (24 | )% | (17,866 | ) | (9 | )% | ||||||||||
| Pre-opening expenses |
(6,493 | ) | (5,701 | ) | (14 | )% | (6,487 | ) | 0 | % | ||||||||||
| Depreciation and amortization |
(21,905 | ) | (16,176 | ) | (35 | )% | (18,406 | ) | (19 | )% | ||||||||||
| Other |
(11,926 | ) | (28,759 | ) | 59 | % | (32,723 | ) | 64 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Operating Expenses |
(170,939 | ) | (115,093 | ) | (49 | )% | (130,957 | ) | (31 | )% | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Loss |
(46,860 | ) | (58,089 | ) | 19 | % | (66,096 | ) | 29 | % | ||||||||||
| Other (Expense) Income |
||||||||||||||||||||
| Interest Expense, net |
(17,018 | ) | (17,897 | ) | 5 | % | (20,364 | ) | 16 | % | ||||||||||
| Gain (Loss) on sale of property and other, net |
6,903 | (12 | ) | n/m | (14 | ) | n/m | |||||||||||||
| Share of loss of equity method investments |
(130 | ) | (2,136 | ) | 94 | % | (2,430 | ) | 95 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total other (expense) income, net |
(10,245 | ) | (20,045 | ) | 49 | % | (22,808 | ) | 55 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Loss Before Income Taxes |
(57,105 | ) | (78,134 | ) | 27 | % | (88,904 | ) | 36 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Income tax benefit |
(3 | ) | 277 | |
n/m |
|
315 | |
n/m |
| ||||||||||
| Net Loss |
(57,108 | ) | (77,857 | ) | 27 | % | (88,589 | ) | 36 | % | ||||||||||
| Net income attributable to noncontrolling interest |
1,121 | 1,707 | (34 | )% | 1,942 | (42 | )% | |||||||||||||
| Net loss attributable to Membership Collective Group Inc. |
(55,987 | ) | (76,150 | ) | 26 | % | (86,647 | ) | 35 | % | ||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
Dollar amounts in thousands |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Total Revenues |
$ | 124,079 | $ | 57,004 | |
n/m |
|
91 | % | |||||||
| North America |
$ | 53,833 | $ | 26,710 | n/m | n/m | ||||||||||
| United Kingdom |
$ | 39,613 | $ | 13,155 | |
n/m |
|
|
n/m |
| ||||||
| Europe/RoW |
$ | 12,649 | $ | 6,913 | 83 | % | 61 | % | ||||||||
| Soho House Design |
$ | 4,107 | $ | 2,786 | 47 | % | 30 | % | ||||||||
| All Other |
$ | 13,877 | $ | 7,440 | 87 | % | 64 | % | ||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Membership Revenues |
$ | 44,863 | $ | 44,456 | 1 | % | (11 | )% | ||||||||
| North America |
$ | 21,365 | $ | 24,585 | (13 | )% | (13 | )% | ||||||||
| United Kingdom |
$ | 14,423 | $ | 12,800 | 13 | % | (1 | )% | ||||||||
| Europe/RoW |
$ | 4,032 | $ | 4,595 | (12 | )% | (23 | )% | ||||||||
| All Other |
$ | 5,043 | $ | 2,476 | |
n/m |
|
79 | % | |||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| In-House Revenues |
$ | 45,793 | $ | 3,111 | n/m | |
n/m |
| ||||||||
| North America |
$ | 24,147 | $ | 971 | n/m | |
n/m |
| ||||||||
| United Kingdom |
$ | 17,830 | $ | — | n/m | n/m | ||||||||||
| Europe/RoW |
$ | 3,816 | $ | 2,140 | 78 | % | 57 | % | ||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Other Revenues |
$ | 33,423 | $ | 9,437 | n/m | n/m | ||||||||||
| North America |
$ | 8,321 | $ | 1,154 | n/m | n/m | ||||||||||
| United Kingdom |
$ | 7,360 | $ | 355 | n/m | |
n/m |
| ||||||||
| Europe/RoW |
$ | 4,801 | $ | 178 | n/m | |
n/m |
| ||||||||
| Soho House Design |
$ | 4,107 | $ | 2,786 | 47 | % | 30 | % | ||||||||
| All Other |
$ | 8,834 | $ | 4,964 | 78 | % | 56 | % | ||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| In-House Operating Expenses |
$ | (70,430 | ) | $ | (29,194 | ) | n/m | n/m | ||||||||
| Percent of total House revenues |
(81 | )% | (62 | )% | (19 | )% | ||||||||||
| Operating Loss |
$ | (46,860 | ) | $ | (58,089 | ) | 19 | % | 29 | % | ||||||
| Operating Loss Margin |
(38 | )% | n/m | 64 | % | |||||||||||
| House-Level Contribution |
$ | 16,743 | $ | 18,040 | (7 | )% | (18 | )% | ||||||||
| House-Level Contribution Margin |
19 | % | 38 | % | (19 | )% | ||||||||||
| House-Level Contribution-by segment: |
||||||||||||||||
| North America |
11,116 | 10,694 | 4 | % | (9 | )% | ||||||||||
| United Kingdom |
1,655 | 3,583 | (54 | )% | (59 | )% | ||||||||||
| Europe/RoW |
(1,382 | ) | 431 | n/m | n/m | |||||||||||
| All Other |
5,354 | 3,332 | 61 | % | 41 | % | ||||||||||
| House-Level Contribution Margin-by segment: |
||||||||||||||||
| North America |
24 | % | 41 | % | ||||||||||||
| United Kingdom |
5 | % | 29 | % | ||||||||||||
| Europe/RoW |
(18 | )% | 6 | % | ||||||||||||
| All Other |
n/m | n/m | ||||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Other Operating Expenses |
(40,685 | ) | (19,561 | ) | n/m | 83 | % | |||||||||
| Percentage of total Other Revenues |
n/m | n/m | ||||||||||||||
| Operating Loss |
(46,860 | ) | (58,089 | ) | 19 | % | 29 | % | ||||||||
| Operating Loss Margin |
(38 | )% | n/m | 64 | % | |||||||||||
| Other Contribution |
(3,779 | ) | (9,791 | ) | 61 | % | 66 | % | ||||||||
| Other Contribution Margin |
(10 | )% | (100 | )% | 90 | % | ||||||||||
| Other Contribution-by segment: |
||||||||||||||||
| North America |
2,093 | (1,939 | ) | n/m | n/m | |||||||||||
| United Kingdom |
(1,952 | ) | (1,729 | ) | (13 | )% | 1 | % | ||||||||
| Europe/RoW |
1,514 | (1,413 | ) | n/m | n/m | |||||||||||
| Soho House Design |
(2,203 | ) | (1,016 | ) | n/m | 91 | % | |||||||||
| Other |
(3,231 | ) | (3,694 | ) | 13 | % | 23 | % | ||||||||
| Other Contribution Margin-by segment: |
||||||||||||||||
| North America |
25 | % | n/m | |||||||||||||
| United Kingdom |
(18 | )% | n/m | |||||||||||||
| Europe/RoW |
32 | % | n/m | |||||||||||||
| Soho House Design |
(54 | )% | (36 | )% | ||||||||||||
| Other |
(27 | )% | (69 | )% | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| General and Administrative Expenses |
19,500 | 15,702 | 24 | % | 9 | % | ||||||||||
| Percent of Total Revenues |
16 | % | 28 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Pre-opening expenses |
6,493 | 5,701 | 14 | % | 0 | % | ||||||||||
| Percent of Total Revenues |
5 | % | 10 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Depreciation and Amortization |
21,905 | 16,176 | 35 | % | 19 | % | ||||||||||
| Percent of Total Revenue |
18 | % | 28 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Other |
11,926 | 28,759 | (59 | )% | (64 | )% | ||||||||||
| Percentage of Total Revenues |
10 | % | 50 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Interest Expense, Net |
17,018 | 17,897 | (5 | )% | (16 | )% | ||||||||||
| Percentage of Total Revenues |
14 | % | 31 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Adjusted EBITDA |
(12,556 | ) | (19,680 | ) | 36 | % | 44 | % | ||||||||
| Percentage of Total Revenues |
(10 | )% | (35 | )% | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
June 28, 2020, Constant Currency (1) |
|||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
|||||||||||||||||||
Actuals |
||||||||||||||||||||
(Dollar amounts in thousands) |
Change % |
(Dollar amounts in thousands) |
Constant Currency change % (1) |
|||||||||||||||||
(Unaudited) |
||||||||||||||||||||
| Revenues |
||||||||||||||||||||
| Membership Revenues |
85,356 | 92,208 | (7 | )% | 102,185 | (16 | )% | |||||||||||||
| In-House Revenues |
62,052 | 70,982 | (13 | )% | 78,662 | (21 | )% | |||||||||||||
| Other Revenues |
49,072 | 35,366 | 39 | % | 39,193 | 25 | % | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Revenues |
196,480 | 198,556 | (1 | )% | 220,040 | (11 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Expenses |
||||||||||||||||||||
| In-House operating expenses (exclusive of depreciation and amortization) |
(116,239 | ) | (124,663 | ) | 7 | % | (138,152 | ) | 16 | % | ||||||||||
| Other operating expenses (exclusive of depreciation and amortization) |
(68,878 | ) | (45,690 | ) | (51 | )% | (50,634 | ) | (36 | )% | ||||||||||
| General and administrative expenses |
(36,005 | ) | (39,849 | ) | 10 | % | (44,161 | ) | 18 | % | ||||||||||
| Pre-opening expenses |
(11,318 | ) | (11,388 | ) | 1 | % | (12,620 | ) | 10 | % | ||||||||||
| Depreciation and amortization |
(39,750 | ) | (31,125 | ) | (28 | )% | (34,493 | ) | (15 | )% | ||||||||||
| Other |
(34,710 | ) | (31,082 | ) | (12 | )% | (34,444 | ) | (1 | )% | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Operating Expenses |
(306,900 | ) | (283,797 | ) | (8 | )% | (314,504 | ) | 2 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Loss |
(110,420 | ) | (85,241 | ) | (30 | )% | (94,464 | ) | (17 | )% | ||||||||||
| Other (Expense) Income |
||||||||||||||||||||
| Interest Expense, net |
(46,622 | ) | (35,653 | ) | (31 | )% | (39,511 | ) | (18 | )% | ||||||||||
| Gain (loss) on sale of property and other, net |
6,903 | (11 | ) | n/m | (12 | ) | n/m | |||||||||||||
| Share of loss of equity method investments |
(826 | ) | (2,312 | ) | 64 | % | (2,562 | ) | 68 | % | ||||||||||
| Total other (expense) income, net |
(40,545 | ) | (37,976 | ) | (7 | )% | (42,085 | ) | 4 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Loss Before Income Taxes |
(150,965 | ) | (123,217 | ) | (23 | )% | (136,549 | ) | (11 | )% | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Income tax benefit |
820 | 380 | n/m | 421 | 95 | % | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Loss |
(150,145 | ) | (122,837 | ) | (22 | )% | (136,128 | ) | (10 | )% | ||||||||||
| Net income attributable to noncontrolling interest |
3,679 | 3,056 | 20 | % | 3,387 | 9 | % | |||||||||||||
| Net loss attributable to Membership Collective Group Inc. |
(146,466 | ) | (119,781 | ) | (22 | )% | (132,741 | ) | (10 | )% | ||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
Unaudited |
||||||||||||||||
| Total Revenues |
$ | 196,480 | $ | 198,556 | (1 | )% | (11 | )% | ||||||||
| North America |
92,265 | 90,509 | 2 | % | 2 | % | ||||||||||
| United Kingdom |
54,025 | 61,784 | (13 | )% | (21 | )% | ||||||||||
| Europe/RoW |
18,645 | 21,184 | (12 | )% | (21 | )% | ||||||||||
| Soho House Design |
8,460 | 7,830 | 8 | % | (3 | )% | ||||||||||
| All Other |
23,085 | 17,249 | 34 | % | 21 | % | ||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
Unaudited |
||||||||||||||||
| Membership Revenues |
$ | 85,356 | $ | 92,208 | (7 | )% | (16 | )% | ||||||||
| North America |
41,672 | 50,598 | (18 | )% | (18 | )% | ||||||||||
| United Kingdom |
28,054 | 27,265 | 3 | % | (7 | )% | ||||||||||
| Europe/RoW |
8,086 | 8,860 | (9 | )% | (18 | )% | ||||||||||
| All Other |
7,544 | 5,485 | 38 | % | 24 | % | ||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| In-House Revenues |
$ | 62,052 | $ | 70,982 | (13 | )% | (21 | )% | ||||||||
| North America |
38,403 | 32,892 | 17 | % | 17 | % | ||||||||||
| United Kingdom |
17,891 | 26,022 | (31 | )% | (38 | )% | ||||||||||
| Europe/RoW |
5,758 | 12,068 | (52 | )% | (57 | )% | ||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Other Revenues |
$ | 49,072 | $ | 35,366 | 39 | % | 25 | % | ||||||||
| North America |
12,190 | 7,019 | 74 | % | 74 | % | ||||||||||
| United Kingdom |
8,080 | 8,497 | (5 | )% | (14 | )% | ||||||||||
| Europe/RoW |
4,801 | 256 | n/m | n/m | ||||||||||||
| Soho House Design |
8,460 | 7,830 | 8 | % | (3 | )% | ||||||||||
| All Other |
15,541 | 11,764 | 32 | % | 19 | % | ||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
(Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| In-House Operating Expenses |
$ | 116,239 | $ | 124,663 | (7 | )% | (16 | )% | ||||||||
| Percent of total House revenues |
19 | % | 23 | % | (4 | )% | ||||||||||
| Operating Loss |
$ | (110,420 | ) | $ | (85,241 | ) | (30 | )% | (17 | )% | ||||||
| Operating Loss Margin |
(56 | )% | (43 | )% | (13 | )% | ||||||||||
| House-Level Contribution |
$ | 26,867 | $ | 37,392 | (28 | )% | (35 | )% | ||||||||
| House-Level Contribution Margin |
19 | % | 23 | % | (4 | )% | ||||||||||
| House-Level Contribution-by segment: |
||||||||||||||||
| North America |
17,695 | 22,515 | (21 | )% | (29 | )% | ||||||||||
| United Kingdom |
6,062 | 9,087 | (33 | )% | (40 | )% | ||||||||||
| Europe/RoW |
(3,297 | ) | 1,420 | n/m | n/m | |||||||||||
| All Other |
6,407 | 4,370 | 47 | % | 32 | % | ||||||||||
| House-Level Contribution Margin-by segment: |
||||||||||||||||
| North America |
22 | % | 27 | % | (5 | )% | ||||||||||
| United Kingdom |
13 | % | 17 | % | (4 | )% | ||||||||||
| Europe/RoW |
(24 | )% | 7 | % | (31 | )% | ||||||||||
| All Other |
n/m | n/m | n/m | |||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Other Operating Expenses |
68,878 | 45,690 | 51 | % | 36 | % | ||||||||||
| Percentage of total Other Revenues |
(29 | )% | (25 | )% | (4 | )% | ||||||||||
| Operating Loss |
$ | (110,420 | ) | $ | (85,241 | ) | (30 | )% | (17 | )% | ||||||
| Operating Loss Margin |
(56 | )% | (43 | )% | (13 | )% | ||||||||||
| Other Contribution |
(15,503 | ) | (9,189 | ) | (69 | )% | (52 | )% | ||||||||
| Other Contribution Margin |
(29 | )% | (25 | )% | (4 | )% | ||||||||||
| Other Contribution-by segment: |
||||||||||||||||
| North America |
2,719 | (1,580 | ) | n/m | n/m | |||||||||||
| United Kingdom |
(4,796 | ) | 485 | n/m | n/m | |||||||||||
| Europe/RoW |
825 | (2,570 | ) | n/m | n/m | |||||||||||
| Soho House Design |
(4,801 | ) | (578 | ) | n/m | n/m | ||||||||||
| Other |
(9,450 | ) | (4,946 | ) | (91 | )% | (72 | )% | ||||||||
| Other Contribution Margin-by segment: |
||||||||||||||||
| North America |
22 | % | (23 | )% | ||||||||||||
| United Kingdom |
(38 | )% | 6 | % | ||||||||||||
| Europe/RoW |
17 | % | n/m | |||||||||||||
| Soho House Design |
(57 | )% | (7 | )% | ||||||||||||
| Other |
(48 | )% | (38 | )% | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| General and Administrative Expenses |
36,005 | 39,849 | (10 | )% | (18 | )% | ||||||||||
| Percent of Total Revenues |
18 | % | 20 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Pre-opening expenses |
11,318 | 11,388 | (1 | )% | (10 | )% | ||||||||||
| Percent of Total Revenues |
6 | % | 6 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Depreciation and Amortization |
39,750 | 31,125 | 28 | % | 15 | % | ||||||||||
| Percent of Total Revenue |
20 | % | 16 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Other |
34,710 | 31,082 | 12 | % | 1 | % | ||||||||||
| Percentage of Total Revenues |
18 | % | 16 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Interest Expense, Net |
46,622 | 35,653 | 31 | % | 18 | % | ||||||||||
| Percentage of Total Revenues |
24 | % | 18 | % | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actual |
Constant Currency (1) |
|||||||||||||
| (Dollar amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
| Adjusted EBITDA |
(35,348 | ) | (28,623 | ) | (23 | )% | (11 | )% | ||||||||
| Percentage of Total Revenues |
(18 | )% | (14 | )% | ||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
13-Weeks Ended |
Percent Change |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
Actuals |
Constant Currency (1) |
|||||||||||||
Actuals |
Actuals |
|||||||||||||||
| |
|
|
|
|||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||
| Net Loss |
(57,108 | ) | (77,857 | ) | 27 | % | 36 | % | ||||||||
| Depreciation and Amortization |
21,905 | 16,176 | 35 | % | 19 | % | ||||||||||
| Interest Expense, net |
17,018 | 17,897 | (5 | )% | (16 | )% | ||||||||||
| Income tax expense (benefit) |
3 | (277 | ) | n/m | n/m | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| EBITDA |
(18,182 | ) | (44,061 | ) | 59 | % | 64 | % | ||||||||
| (Gain) loss on sale of property and other, net |
(6,903 | ) | 12 | n/m | n/m | |||||||||||
| Share of loss of equity method investments |
130 | 2,136 | 94 | % | 95 | % | ||||||||||
| Foreign exchange (2) |
1,055 | 4,903 | 78 | % | 81 | % | ||||||||||
| Share of equity method investments adjusted EBITDA |
1,456 | 498 | n/m | n/m | ||||||||||||
| Share-based compensation expense |
2,548 | — | n/m | n/m | ||||||||||||
| Membership credits expense (3) |
1,404 | 8,175 | 83 | % | 85 | % | ||||||||||
| COVID-19 related charges (4) |
(272 | ) | 1,739 | n/m | n/m | |||||||||||
| Corporate financing and restructuring costs (5) |
6,208 | 505 | n/m | n/m | ||||||||||||
| Abandoned project and site closure costs |
— | 6,413 | 100 | % | 100 | % | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
(12,556 | ) | (19,680 | ) | 36 | % | 44 | % | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
| (2) | The increase in foreign exchange period on period is driven by an increase in non-USD denominated borrowings, which have increased since the preceding period, foreign exchange volatility, and an out of period adjustment as described in Note 2 of the Company’s condensed consolidated financial statements included elsewhere in this document. |
| (3) | Beginning on March 14, 2020, due to the COVID-19 pandemic, we issued membership credits to active members of our closed Houses to be redeemed for certain Soho Home products and services. Membership credits were a one-time goodwill gesture, issued as a marketing offer to active members. The expense represents our best estimate of the cost in fulfilling the membership credits. |
| (4) | Represent items of additional expense incurred in order to comply with health and safety protocols while keeping certain Houses open during the pandemic. In 2021, we received a government grant related to business rates in the UK which reduced our COVID related expenses. |
| (5) | Our Corporate financing and restructuring costs vary significantly each year and period presented based on financing and restructuring being undertaken. Such costs do not relate to normal, recurring, cash operating expenses. In the second quarter 2021, these costs consisted of IPO-related costs of $6,205 incurred during this quarter. In the second quarter 2020, we incurred costs of $505 related to our internal restructuring initiative to simplify the business in terms of headcount and cost structure. |
July 4, 2021 |
June 28, 2020 |
Change % |
June 28, 2020 Constant Currency (1) |
Constant Currency Change % (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| |
|
|||||||||||||||||||
| Operating Loss |
(46,860 | ) | (58,089 | ) | 19 | % | (66,096 | ) | 29 | % | ||||||||||
| General and Administrative |
19,500 | 15,702 | 24 | % | 17,866 | 9 | % | |||||||||||||
| Pre-opening expenses |
6,493 | 5,701 | 14 | % | 6,487 | 0 | % | |||||||||||||
| Depreciation and Amortization |
21,905 | 16,176 | 35 | % | 18,406 | 19 | % | |||||||||||||
| Other |
11,926 | 28,759 | (59 | )% | 32,723 | (64 | )% | |||||||||||||
| Non-House Membership Revenue |
(3,483 | ) | (333 | ) | n/m | (379 | ) | n/m | ||||||||||||
| Other Revenues |
(33,423 | ) | (9,437 | ) | n/m | (10,738 | ) | n/m | ||||||||||||
| Other Operating Expenses |
40,685 | 19,561 | n/m | 22,257 | 83 | % | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| House-Level Contribution |
16,743 | 18,040 | (7 | )% | 20,526 | (18 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Loss Margin |
(38 | )% | n/m | n/m | ||||||||||||||||
| House-Level Contribution Margin |
19 | % | 38 | % | (19 | )% | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
July 4, 2021 |
June 28, 2020 |
Change% |
March 29, 2020 Constant Currency (1) |
Constant Currency Change% (1) |
||||||||||||||||
| Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Membership Revenues |
44,863 | 44,456 | 1 | % | 50,583 | (11 | )% | |||||||||||||
| Less: Non-House Membership Revenue |
(3,483 | ) | (333 | ) | n/m | (379 | ) | n/m | ||||||||||||
| Add: In-House Revenues |
45,793 | 3,111 | n/m | 3,540 | n/m | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total House Revenues |
87,173 | 47,234 | 85 | % | 53,744 | 62 | % | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Less: In-House Operating Expenses |
||||||||||||||||||||
| In-House Operating Expenses |
70,430 | 29,194 | n/m | 33,218 | n/m | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| House-Level Contribution |
16,743 | 18,040 | (7 | )% | 20,526 | (18 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
| |||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
Change% |
June 28, 2020 Constant Currency (1) |
Constant Currency Change% (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Operating Loss |
(46,860 | ) | (58,089 | ) | 19 | % | (66,096 | ) | 29 | % | ||||||||||
| General and Administrative |
19,500 | 15,702 | 24 | % | 17,866 | 9 | % | |||||||||||||
| Pre-opening expenses |
6,493 | 5,701 | 14 | % | 6,487 | 0 | % | |||||||||||||
| Depreciation and Amortization |
21,905 | 16,176 | 35 | % | 18,406 | 19 | % | |||||||||||||
| Other |
11,926 | 28,759 | (59 | )% | 32,723 | (64 | )% | |||||||||||||
| House Membership Revenues |
(41,380 | ) | (44,123 | ) | (6 | )% | (50,205 | ) | (18 | )% | ||||||||||
| In-House Revenues |
(45,793 | ) | (3,111 | ) | n/m | (3,540 | ) | n/m | ||||||||||||
| In-House Operating Expenses |
70,430 | 29,194 | n/m | 33,218 | n/m | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Other Contribution |
(3,779 | ) | (9,791 | ) | 61 | % | (11,141 | ) | 66 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Loss Margin |
(38 | )% | n/m | n/m | ||||||||||||||||
| Other Contribution Margin |
(10 | )% | (100 | )% | (100 | )% | ||||||||||||||
| (1) See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
|
|||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
Change% |
June 28, 2020 Constant Currency (1) |
Constant Currency Change% (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Other Contribution |
||||||||||||||||||||
| Non-House Membership Revenue |
3,483 | 333 | n/m | 379 | n/m | |||||||||||||||
| Other Revenues |
33,423 | 9,437 | n/m | 10,738 | n/m | |||||||||||||||
| Less: Other Operating Expenses |
40,685 | 19,561 | n/m | 22,257 | 83 | % | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Other Contribution |
(3,779 | ) | (9,791 | ) | 61 | % | (11,141 | ) | 66 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
Percent Change |
|||||||||||||||
| ADJUSTED EBITDA |
July 4, 2021 Actuals |
June 28, 2020 Actuals |
Actuals |
Constant Currency (1) |
||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||
| Net Loss |
(150,145 | ) | (122,837 | ) | (22 | )% | (10 | )% | ||||||||
| Depreciation and Amortization |
39,750 | 31,125 | 28 | % | 15 | % | ||||||||||
| Interest Expense, net |
46,622 | 35,653 | 31 | % | 18 | % | ||||||||||
| Income tax benefit |
(820 | ) | (380 | ) | n/m | 95 | % | |||||||||
| |
|
|
|
|
|
|
|
|||||||||
| EBITDA |
(64,593 | ) | (56,439 | ) | (14 | )% | (3 | )% | ||||||||
| (Gain) loss on sale of property and other, net |
(6,903 | ) | 11 | n/m | n/m | |||||||||||
| Share of loss of equity method investments |
826 | 2,312 | 64 | % | 68 | % | ||||||||||
| Foreign exchange (2) |
15,922 | 5,294 | n/m | n/m | ||||||||||||
| Share of equity method investments adjusted EBITDA |
2,327 | 1,708 | (36 | )% | (23 | )% | ||||||||||
| Share-based compensation expense |
4,677 | — | n/m | n/m | ||||||||||||
| Membership credits expense (3) |
4,154 | 8,175 | 49 | % | 54 | % | ||||||||||
| COVID-19 related charges (4) |
(241 | ) | 2,901 | n/m | n/m | |||||||||||
| Corporate financing and restructuring costs (5) |
8,483 | 1,002 | n/m | n/m | ||||||||||||
| Abandoned project and site closure costs |
— | 6,413 | 100 | % | 100 | % | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
(35,348 | ) | (28,623 | ) | (23 | )% | (11 | )% | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
| (2) | The increase in foreign exchange period on period is driven by an increase in non-USD denominated borrowings, which have increased since the preceding period, foreign exchange volatility, and an out of period adjustment as described in Note 2 of the Company’s condensed consolidated financial statements included elsewhere in this document. |
| (3) | Beginning on March 14, 2020, due to the COVID-19 pandemic, we issued membership credits to active members of our closed Houses to be redeemed for certain Soho Home products and services. Membership credits were a one-time goodwill gesture, issued as a marketing offer to active members. The expense represents our best estimate of the cost in fulfilling the membership credits. |
| (4) | Represent items of additional expense incurred in order to comply with health and safety protocols while keeping certain Houses open during the pandemic. In 2021, we received a government grant related to business rates in the UK which reduced our COVID related expenses. |
| (5) | Our Corporate financing and restructuring costs vary significantly each year and period presented based on financing and restructuring being undertaken. Such costs do not relate to normal, recurring, cash operating expenses. In first half 2021, these costs consisted of certain items relating to acquiring shareholdings of joint ventures and non-controlling interests not held by the Company of $250 and refinancing fees and IPO-related costs totalling $8,233. In first half 2020, we commenced an internal restructuring to simplify the business in terms of headcount and cost structure, incurring costs of $1,002. |
July 4, 2021 |
June 28, 2020 |
Change % |
June 28, 2020 Constant Currency (1) |
Constant Currency Change % (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Operating Loss |
(110,420 | ) | (85,241 | ) | (30 | )% | (94,464 | ) | (17 | )% | ||||||||||
| General and Administrative |
36,005 | 39,849 | (10 | )% | 44,161 | (18 | )% | |||||||||||||
| Pre-opening expenses |
11,318 | 11,388 | (1 | )% | 12,620 | (10 | )% | |||||||||||||
| Depreciation and Amortization |
39,750 | 31,125 | 28 | % | 34,493 | 15 | % | |||||||||||||
| Other |
34,710 | 31,082 | 12 | % | 34,444 | 1 | % | |||||||||||||
| Non-House Membership Revenue |
(4,303 | ) | (1,135 | ) | n/m | (1,258 | ) | n/m | ||||||||||||
| Other Revenues |
(49,072 | ) | (35,366 | ) | 39 | % | (39,193 | ) | 25 | % | ||||||||||
| Other Operating Expenses |
68,878 | 45,690 | 51 | % | 50,634 | 36 | % | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| House-Level Contribution |
26,866 | 37,392 | (28 | )% | 41,437 | (35 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Loss Margin |
(56 | )% | (43 | )% | (43 | )% | ||||||||||||||
| House-Level Contribution Margin |
19 | % | 23 | % | 23 | % | ||||||||||||||
| |
|
|
|
|
|
|||||||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
July 4, 2021 |
June 28, 2020 |
Change % |
March 29, 2020 Constant Currency (1) |
Constant Currency Change % (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Membership Revenues |
85,356 | 92,208 | (7 | )% | 102,185 | (16 | )% | |||||||||||||
| Less: Non-House Membership |
(4,303 | ) | (1,135 | ) | n/m | (1,258 | ) | n/m | ||||||||||||
| Add: In-House Revenues |
62,052 | 70,982 | (13 | )% | 78,662 | (21 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total House Revenues |
143,105 | 162,055 | (12 | )% | 179,589 | (20 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Less: In-House Operating Expenses |
||||||||||||||||||||
| In-House Operating Expenses |
116,239 | 124,663 | (7 | )% | 138,152 | (16 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| House-Level Contribution |
26,866 | 37,392 | (28 | )% | 41,437 | (35 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
| |||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
Change % |
June 28, 2020 Constant Currency (1) |
Constant Currency Change % (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Operating Loss |
(110,420 | ) | (85,241 | ) | (30 | )% | (94,464 | ) | (17 | )% | ||||||||||
| General and Administrative |
36,005 | 39,849 | (10 | )% | 44,161 | (18 | )% | |||||||||||||
| Pre-opening expenses |
11,318 | 11,388 | (1 | )% | 12,620 | (10 | )% | |||||||||||||
| Depreciation and Amortization |
39,750 | 31,125 | 28 | % | 34,493 | 15 | % | |||||||||||||
| Other |
34,710 | 31,082 | 12 | % | 34,444 | 1 | % | |||||||||||||
| House Membership Revenues |
(81,053 | ) | (91,073 | ) | (11 | )% | (100,927 | ) | (20 | )% | ||||||||||
| In-House Revenues |
(62,052 | ) | (70,982 | ) | (13 | )% | (78,662 | ) | (21 | )% | ||||||||||
| In-House Operating Expenses |
116,239 | 124,663 | (7 | )% | 138,152 | (16 | )% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Other Contribution |
(15,503 | ) | (9,189 | ) | (69 | )% | (10,183 | ) | (52 | )% | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Loss Margin |
(56 | )% | (43 | )% | (43 | )% | ||||||||||||||
| Other Contribution Margin |
(29 | )% | (25 | )% | (25 | )% | ||||||||||||||
| (1) See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
| |||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
Change % |
June 28, 2020 Constant Currency (1) |
Constant Currency Change % (1) |
||||||||||||||||
Actuals |
||||||||||||||||||||
| |
|
|||||||||||||||||||
(Unaudited, dollar amounts in thousands) |
||||||||||||||||||||
| Other Contribution |
||||||||||||||||||||
| Non-House Membership Revenue |
4,303 | 1,135 | n/m | 1,258 | n/m | |||||||||||||||
| Other Revenues |
49,072 | 35,366 | 39 | % | 39,193 | 25 | % | |||||||||||||
| Less: Other Operating Expenses |
68,878 | 45,690 | 51 | % | 50,634 | 36 | % | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Other Contribution |
(15,503 | ) | (9,189 | ) | (69 | )% | (10,183 | ) | (52 | )% | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | See “Non-GAAP Financial Measures” for an explanation of our constant currency results. |
26-Weeks Ended |
||||||||
July 4, 2021 |
June 28, 2020 |
|||||||
(Unaudited, dollar amounts in thousands) |
||||||||
| Net cash (used in) generated by |
||||||||
| Net cash used in operating activities |
(94,220 | ) | (14,695 | ) | ||||
| Net cash used in investing activities |
(50,028 | ) | (67,166 | ) | ||||
| Net cash provided by financing activities |
140,983 | 168,490 | ||||||
| Effect of exchange rates on cash and cash equivalents |
242 | (2,924 | ) | |||||
| |
|
|
|
|||||
| Net (decrease) increase in cash and cash equivalents |
(3,023 | ) | 83,705 | |||||
| |
|
|
|
|||||
| • | actions taken (or not taken) by our employees relating to health, safety, construction, welfare, or otherwise; |
| • | security or data breaches or incidents, fraudulent activities associated with our membership database or electronic payment systems or unauthorized access to or use or disclosure of confidential, sensitive or PII; |
| • | litigation and legal claims, regardless of the merits or the outcome; |
| • | third-party misappropriation, dilution, infringement or other violation of our intellectual property; and |
| • | illegal activity targeted at us or others. |
| • | make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations under our credit facilities, including restrictive covenants, could result in an event of default under such facilities; |
| • | increase our vulnerability to adverse economic and industry conditions, which could place us at a competitive disadvantage compared to our competitors that have proportionately less indebtedness; |
| • | require the dedication of a substantial portion of our cash flow from operations towards the payment of amounts due on our indebtedness, thereby reducing the availability of such cash flow to fund working capital, capital expenditures, acquisitions, joint ventures and development or other corporate purposes; |
| • | increase our cost of borrowing and cause us to incur substantial fees from time to time in connection with debt amendments or refinancing; |
| • | increase our exposure to rising interest rates because a portion of our borrowings is at variable interest rates; |
| • | limit our flexibility in planning for, or reacting to, changes in our business and our industry; |
| • | place us at a competitive disadvantage compared to our competitors that are less highly leveraged and that, therefore, may be able to take advantage of opportunities that our leverage prevents us from exploiting, including acquiring new assets; |
| • | restrict us from making strategic acquisitions or cause us to make non-strategic divestitures to service or repay such indebtedness; and |
| • | limit our ability to borrow additional funds, or dispose of assets to raise funds, if needed, for working capital, capital expenditures, acquisitions, and other corporate purposes. |
| • | incur indebtedness or guarantees or engage in sale and leaseback transactions; |
| • | incur liens; |
| • | engage in mergers, acquisitions and asset sales; |
| • | alter the business conducted today by the company and its restricted subsidiaries; |
| • | make investments and loans; |
| • | declare dividends or other distributions; |
| • | enter into agreements limiting restricted subsidiary distributions; and |
| • | engage in certain transactions with affiliates. |
| • | limited in how we conduct our business; |
| • | unable to raise additional debt or equity financing on terms acceptable to us, or at all, to operate during general economic or business downturns; or |
| • | unable to compete effectively or to take advantage of new business opportunities. |
| • | construction delays or cost overruns (including with respect to labor and materials) that may increase project costs; |
| • | obtaining zoning, occupancy, and other required permits or authorizations; |
| • | changes in economic conditions that may result in weakened or lack of demand or negative project returns; |
| • | governmental restrictions on the size or kind of development; |
| • | lack of availability of rooms or spaces for revenue-generating activities during construction, modernization or renovation projects; |
| • | environmental conditions of properties being developed; |
| • | force majeure events, including earthquakes, tornadoes, hurricanes, floods or tsunamis; and |
| • | design defects that could increase costs. |
| • | sensitive data regarding our business, including intellectual property, personal information (including PII), and other confidential and proprietary data, could be stolen; |
| • | our electronic communications systems, including email and other methods, could be disrupted, delayed, or damaged, and our ability to conduct our business operations could be seriously damaged until such systems can be restored; |
| • | our ability to process customer orders and our distribution channels could be disrupted, interrupted or damaged, resulting in delays in revenue recognition, harm to our relationships with customers and prospective customers and harm to our reputation; |
| • | accidental release or loss of or access to information maintained in our or third-party service providers’ information systems and networks, including PII of our employees and our members, may occur; and |
| • | PII relating to various parties, including members, customers, employees and business partners, could be compromised, and we may be found to be in violation of applicable data privacy, security and protection laws, rules, regulations, industry standards, policies or contractual obligations. |
| • | changes in the valuation of our deferred tax assets and liabilities; |
| • | expected timing and amount of the release of any tax valuation allowances; |
| • | tax effects of stock-based compensation; |
| • | costs related to intercompany restructurings; |
| • | changes in tax laws, regulations and double taxation agreements, or in the interpretation, administration, or application thereof (in particular, as a result of Brexit); or |
| • | lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates. |
| • | being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of operation” disclosure; |
| • | not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting; |
| • | reduced disclosure obligations regarding executive compensation; and |
| • | exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. |
| • | so long as the Voting Group owns at least 35% of our total outstanding shares of common stock, it will be entitled to designate nine directors for nomination, of which Yucaipa shall have the right to designate seven directors for nomination, Mr. Caring shall have the right to designate one director for nomination and Mr. Jones shall have the right to designate one director for nomination; |
| • | so long as the Voting Group owns less than 35% but at least 15% of our total outstanding shares of common stock, it will be entitled to designate six directors for nomination, of which Yucaipa shall have the right to designate four directors for nomination, Mr. Caring shall have the right to designate one director for nomination and Mr. Jones shall have the right to designate one director for nomination; |
| • | so long as the Voting Group owns less than 15% but at least 9% of our total outstanding shares of common stock, it will be entitled to designate three directors for nomination, of which Yucaipa shall have the right to designate one director for nomination, Mr. Caring shall have the right to designate one director for nomination and Mr. Jones shall have the right to designate one director for nomination; and |
| • | in the event that the Voting Group owns less than 9% of our total outstanding shares of common stock, neither the Voting Group nor any member will be entitled to designate any individuals for nomination for election to the Board; provided, however, that in the event at any time either Mr. Caring or Mr. Jones (in the case of Mr. Jones, at such time as Mr. Jones is not also our Chief Executive Officer) (including their respective affiliates and family members) shall own less than 5% of the shares of our outstanding common stock, such member shall no longer have the nominee designation rights set forth above and such designation shall instead be made by Yucaipa, unless, in each case, any individual member of the Voting Group owns more than 5% of our total outstanding common stock (at such time after the Voting Group owns less than 9% of our total outstanding shares of common stock), in which case such member will be entitled to nominate one director for election (though no other Voting Group member shall have any obligation to vote in favor of such nomination). In addition, for so long as Mr. Jones serves as our Chief Executive Officer, he shall remain a director on our Board. |
| • | Once the Voting Group owns less than 15% of the shares of our total outstanding shares of common stock, all remaining shares of Class B common stock will automatically convert on a one-for-one |
| • | a Board that is composed of a majority of independent directors, as defined under the listing rules of the NYSE; |
| • | a compensation committee that is composed entirely of independent directors; and |
| • | a nominating and corporate governance committee that is composed entirely of independent directors. |
| • | market conditions in the broader stock market; |
| • | actual or anticipated fluctuations in our quarterly financial and operating results; |
| • | introduction of new products or services by us or our competitors; |
| • | issuance of new or changed securities analysts’ reports or recommendations; |
| • | results of operation that vary from expectations of securities analysis and investors; |
| • | guidance, if any, that we provide to the public, any changes in such guidance or our failure to meet such guidance; |
| • | strategic actions by us or our competitors; |
| • | announcement by us, our competitors or our vendors of significant contracts or acquisitions; |
| • | sales, or anticipated sales, of large blocks of our common stock; |
| • | additions or departures of key personnel; |
| • | regulatory, legal or political developments; |
| • | tax developments; |
| • | public responses to press releases or other public announcements by us or third parties, including our filings with the SEC; |
| • | litigation and governmental investigations; |
| • | changing economic conditions; |
| • | changes in accounting principles; |
| • | default under agreements governing our indebtedness; |
| • | exchange rate fluctuations; and |
| • | other events or factors, including those from natural or man-made disasters, war, acts of terrorism or responses to these events. |
| * | Filed herewith. |
| Membership Collective Group Inc. | ||||||
| Date: August 26, 2021 | By: | /s/ Nick Jones | ||||
| Nick Jones | ||||||
| Chief Executive Officer | ||||||
| Date: August 26, 2021 | By: | /s/ Humera Afzal | ||||
| Humera Afzal | ||||||
| Chief Financial Officer | ||||||