New York
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0-14818
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14-1541629
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||
(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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☐ |
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common shares, $0.01 par value per share
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KSPN
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NASDAQ Stock Market
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ITEM 2.02.
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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ITEM 9.01.
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FINANCIAL STATEMENTS AND EXHIBITS
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Exhibit No.
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Description
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99.1
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Kaspien Holding Inc. Press Release dated September 15, 2020.
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Dated: September 16, 2020
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Kaspien Holding Inc.
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||
By: |
/s/ Edwin Sapienza
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Name: Edwin Sapienza
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Title: Chief Financial Officer
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Exhibit No.
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Description
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Kaspien Holding Inc. press release date September 15, 2020
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Contact:
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Contact:
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Contact:
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Kaspien Holdings Inc.
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Kaspien, Inc
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Financial Relations Board
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Ed Sapienza
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Kunal Chopra
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Joseph Calabrese
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Chief Financial Officer
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Chief Executive Officer
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jcalabrese@fbir.com
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(509) 202-4261
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(425) 281-3566
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(212) 827-3772
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• |
Total revenue increased 23.5% to $42.3 million compared to $34.3 million in the second quarter of fiscal 2019. Increased retail sales were supported by strong growth in the Company’s subscriptions and dropship
businesses.
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• |
Gross profit for the quarter increased 43.3% to $4.4 million, or 10.5% of total revenue as compared to $3.1 million, or 9.0% of total revenue for the second quarter of 2019. The increase in Gross profit as a
percentage of total revenue was due to improved gross margins on the Amazon US Platform, improved operational efficiencies and the addition of new higher gross margin services.
|
• |
SG&A expenses for the quarter were $4.9 million, a decline of $1.8 million or 26.3% as compared to the second quarter of 2019. The decline in SG&A was due to a decline of $2.0 million in corporate
expenses. The decline in corporate expenses was related to the sale of the Company’s fye business in February 2020.
|
• |
Loss from continuing operations was $0.9 million compared to a loss from continuing operations of $3.8 million for the second quarter of fiscal 2019.
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• |
Net loss was $0.9 million, or $0.49 per share, compared to a net loss of $8.1 million, or $4.48 per share, for the same period last year.
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• |
Adjusted EBITDA (a non-GAAP measure) was $833,000 compared to a loss of $310,000 for the second quarter of fiscal 2019 (see note 1).
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• |
Total revenue for the twenty-six weeks ended August 1, 2020 increased 6.5% to $73.9 million, compared to $69.4 million for the same period last year driven by increased sales on the Amazon US Platform and
growth in the subscriptions business.
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• |
Gross profit for the twenty-six weeks ended August 1, 2020 increased 31.9% to $7.7 million, or 10.5% of total revenue as compared to $5.9 million, or 8.5% of total revenue for the comparable period of 2019. The
increase in Gross profit as a percentage of total revenue was due to improved gross margins on the Amazon US Platform, improved operational efficiencies and the addition of new higher gross margin services.
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• |
SG&A expenses for twenty-six weeks ended August 1, 2020 were $13.4 million a decline of $0.2 million as compared to the comparable period of 2019.
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• |
Loss from continuing operations was $5.7 million compared to $7.8 million for the twenty-six weeks ended August 3, 2019.
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• |
Net loss was $6.3 million, or $3.46 per share, for the twenty-six weeks ended August 1, 2020, compared to a net loss of $15.9 million, or $8.78 per share, for the same period last year.
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• |
Adjusted EBITDA (a non-GAAP measure) was a $544,000 compared to a loss of $1.4 million for the same period last year (see note 1).
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• |
Cash, cash equivalents and restricted cash as of August 1, 2020 was $8.6 million, compared to $9.9 million as of August 3, 2019.
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• |
Borrowings under the credit facility at the end of the second quarter were $2.2 million compared to $12.1 million at the end of the second quarter last year. As of August 1, 2020, $6.5 million was available
for borrowing.
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• |
Inventory was $20.6 million at the end of second quarter of 2020 as compared to $20.2 million at the end of the second quarter of 2019.
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Thirteen Weeks Ended
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Twenty-six Weeks Ended
|
|||||||||||||||||||||||||||||||
August 1,
2020 |
% to
Revenue |
August 3,
2019 |
% to
Revenue |
August 1,
2020 |
% to
Revenue |
August 3,
2019 |
% to
Revenue |
|||||||||||||||||||||||||
Net revenue
|
$
|
42,296
|
$
|
34,260
|
$
|
73,885
|
$
|
69,392
|
||||||||||||||||||||||||
Cost of sales
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37,873
|
89.5
|
%
|
31,173
|
91.0
|
%
|
66,151
|
89.5
|
%
|
63,528
|
91.5
|
%
|
||||||||||||||||||||
Gross profit
|
4,423
|
10.5
|
%
|
3,087
|
9.0
|
%
|
7,734
|
10.5
|
%
|
5,864
|
8.5
|
%
|
||||||||||||||||||||
Selling, general and administrative expenses
|
4,916
|
11.6
|
%
|
6,666
|
19.5
|
%
|
13,406
|
18.1
|
%
|
13,644
|
19.7
|
%
|
||||||||||||||||||||
Loss from continuing operations
|
(493
|
)
|
-1.2
|
%
|
(3,579
|
)
|
-10.4
|
%
|
(5,672
|
)
|
-7.7
|
%
|
(7,780
|
)
|
-11.2
|
%
|
||||||||||||||||
Interest expense
|
406
|
1.0
|
%
|
172
|
0.5
|
%
|
634
|
0.9
|
%
|
308
|
0.4
|
%
|
||||||||||||||||||||
Loss from continuing operations before income tax benefit
|
(899
|
)
|
-2.1
|
%
|
(3,751
|
)
|
-10.9
|
%
|
(6,306
|
)
|
-8.5
|
%
|
(8,088
|
)
|
-11.7
|
%
|
||||||||||||||||
Income tax expense
|
-
|
0.0
|
%
|
7
|
0.0
|
%
|
-
|
0.0
|
%
|
16
|
0.0
|
%
|
||||||||||||||||||||
Loss from continuing operations
|
(899
|
)
|
-2.1
|
%
|
(3,758
|
)
|
-11.0
|
%
|
(6,306
|
)
|
-8.5
|
%
|
(8,104
|
)
|
-11.7
|
%
|
||||||||||||||||
Loss from fye business, net of tax
|
-
|
0.0
|
%
|
(4,370
|
)
|
-12.8
|
%
|
-
|
0.0
|
%
|
(7,826
|
)
|
-11.3
|
%
|
||||||||||||||||||
Net loss
|
$
|
(899
|
)
|
-2.1
|
%
|
$
|
(8,128
|
)
|
-23.7
|
%
|
$
|
(6,306
|
)
|
-8.5
|
%
|
$
|
(15,930
|
)
|
-23.0
|
%
|
||||||||||||
Basic and diluted loss per common share:
|
||||||||||||||||||||||||||||||||
Basic and diluted loss per share
|
$
|
(0.49
|
)
|
$
|
(4.48
|
)
|
$
|
(3.46
|
)
|
$
|
(8.78
|
)
|
||||||||||||||||||||
Weighted average number of common shares outstanding - basic and diluted
|
1,825
|
1,816
|
1,823
|
1,815
|
||||||||||||||||||||||||||||
Diluted Income per common share:
|
||||||||||||||||||||||||||||||||
SELECTED BALANCE SHEET CAPTIONS:
|
|
|
||||||||||||||||||||||||||||||
(in thousands, except store data)
|
August 1,
2020
|
August 3,
2019
|
||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash
|
$
|
8,649
|
$
|
9,930
|
||||||||||||||||||||||||||||
Merchandise inventory
|
20,576
|
20,185
|
||||||||||||||||||||||||||||||
Fixed assets (net)
|
2,285
|
1,898
|
||||||||||||||||||||||||||||||
Accounts payable
|
9,857
|
9,285
|
||||||||||||||||||||||||||||||
Borrowings under line of credit
|
2,151
|
12,086
|
||||||||||||||||||||||||||||||
Long-term debt
|
4,401
|
-
|
1. |
Reconciliation of net loss to adjusted EBITDA:
|
Thirteen Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||
(amounts in thousands)
|
August 1,
2020 |
August 3,
2019 |
August 1,
2020 |
August 3,
2019 |
||||||||||||
Net loss
|
$
|
(899
|
)
|
$
|
(8,128
|
)
|
$
|
(6,306
|
)
|
$
|
(15,930
|
)
|
||||
Income tax expense
|
-
|
7
|
-
|
16
|
||||||||||||
Loss from fye business, net of tax
|
-
|
4,370
|
-
|
7,826
|
||||||||||||
Interest expense
|
406
|
172
|
634
|
308
|
||||||||||||
Loss from continuing operations
|
(493
|
)
|
(3,579
|
)
|
(5,672
|
)
|
(7,780
|
)
|
||||||||
Corporate SG&A expenses
|
810
|
2,833
|
5,209
|
5,560
|
||||||||||||
Depreciation expense
|
516
|
436
|
1,007
|
844
|
||||||||||||
Adjusted EBITDA
|
$
|
833
|
$
|
(310
|
)
|
$
|
544
|
$
|
(1,376
|
)
|
• Partner Obsession
• Insights Driven
• Simplicity
• Innovation
|
• Results
• Ownership
• Diversity and Teamwork
|
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