|
|
|
||
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
ITEM 2.02. |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
|
ITEM 9.01. |
FINANCIAL STATEMENTS AND EXHIBITS
|
Exhibit No.
|
Description
|
99.1
|
Kaspien Holding Inc. Press Release dated December 13, 2022.
|
104
|
Cover Page Interactive Data File (formatted in iXBRL)
|
Dated: December 14, 2022
|
Kaspien Holding Inc.
|
||
By:
|
/s/ Edwin Sapienza
|
||
Name: Edwin Sapienza
|
|||
Title: Chief Financial Officer
|
Exhibit No.
|
Description
|
Kaspien Holding Inc. Press Release dated December 13, 2022.
|
|
104
|
Cover Page Interactive Data File (formatted in iXBRL)
|
● |
Net revenue decreased 9.4% to $29.1 million from $32.2 million in the comparable year-ago period. The decrease in net revenue was primarily attributable to declines in
Fulfillment by Amazon United States (“FBAUS”). Gross merchandise value (“GMV”) for the three months ended October 29, 2022 was $63.9 million as compared to $63.5 million for the three months ended October 30, 2021. Retail GMV decreased
7.8% to $30.4 million compared to $33.0 million in the comparable year-ago period. Subscription GMV increased 9.8% to $33.5 million, or 52.4% of total GMV, compared to $30.5 million, or 47.6% of total GMV, in the comparable year-ago period.
|
● |
Gross profit decreased 17.9% to $6.6 million or 22.6% of net revenue from $8.0 million or 24.9% of
net revenue in the comparable year-ago period. The decrease in gross profit was primarily attributable to a reduction in net revenue
for FBAUS, and a decrease in merchandise margin. The table below summarizes the year-over-year comparison of gross margin:
|
Thirteen Weeks Ended
|
Change
|
|||||||||||||||
(amounts in thousands)
|
October 29, 2022
|
October 30, 2021
|
$ |
|
%
|
|||||||||||
Merchandise margin
|
$
|
12,691
|
$
|
14,653
|
$
|
(1,962
|
)
|
-13.4
|
%
|
|||||||
% of net revenue
|
43.5
|
%
|
45.5
|
%
|
-2.1
|
%
|
||||||||||
Fulfillment fees
|
(3,888
|
)
|
(4,375
|
)
|
487
|
-11.1
|
%
|
|||||||||
Warehousing and freight
|
(2,228
|
)
|
(2,274
|
)
|
46
|
-2.0
|
%
|
|||||||||
Gross profit
|
$
|
6,575
|
$
|
8,004
|
$
|
(1,429
|
)
|
-17.9
|
%
|
|||||||
% of net revenue
|
22.6
|
%
|
24.9
|
%
|
● |
Selling, General & Administrative (“SG&A”) expenses were $9.3 million or 31.8% of net revenue
as compared to $10.0 million or 31.1% of net revenue in the comparable year-ago period. The decline in SG&A expenses was due to
a reduction in Selling expenses related to the decline in Net revenue and a $0.4 million reduction in General and administrative expenses.
|
● |
Loss from operations was $2.7 million, compared to a loss from operations of $2.0 million in the comparable year-ago period. The increase in operating loss resulted from the decline in net revenue and a reduction in merchandise margin.
|
● |
Net loss was $3.6 million, or $0.92 per diluted share, compared to a net loss of $0.9 million, or $0.36 per diluted share, in the comparable
year-ago period.
|
● |
Adjusted EBITDA loss (a non-GAAP metric reconciled below) was $2.3 million, compared to an adjusted EBITDA loss of $1.4 million in the comparable year-ago period.
|
● |
As of October 29, 2022, the Company had $0.8 million in cash, compared to $1.2 million as of January 30, 2021 and $1.8 million as of October 30, 2021.
|
● |
Cash used in operations during the thirteen weeks ended October 29, 2022 was $6.3 million, compared to $5.1 million in the comparable year-ago period.
|
● |
Inventory at quarter end was $37.4 million, compared to $30.0 million as of October 30, 2021.
|
● |
As of October 29, 2022, the Company had borrowings under its credit facility of $9.5 million and had $5.2 million available for borrowing.
|
● |
Net revenue decreased 11.9% to $94.8 million from $107.7 million in the comparable year-ago period. This decrease in net revenue was driven by declines in the Company’s FBAUS
segment.
|
● |
Gross profit was $20.2 million or 21.3% of net revenue, compared to $26.6 million or 24.7% of net revenue over the comparable year-ago period. The decrease in gross profit was primarily attributable to a reduction in net revenue on the Amazon US platform, a decrease in merchandise margin and increased warehousing and freight expenses. The table below
summarizes the year-over-year comparison of gross margin:
|
Thirty-nine Weeks
|
Change
|
|||||||||||||||
(amounts in thousands)
|
October 29,
2022
|
October 30,
2021
|
$ |
|
%
|
|||||||||||
Merchandise margin
|
$
|
40,858
|
$
|
49,309
|
$
|
(8,451
|
)
|
-17.1
|
%
|
|||||||
% of net revenue
|
43.1
|
%
|
45.8
|
%
|
-2.8
|
%
|
||||||||||
Fulfillment fees
|
(13,110
|
)
|
(16,218
|
)
|
3,108
|
-19.2
|
%
|
|||||||||
Warehousing and freight
|
(7,593
|
)
|
(6,455
|
)
|
(1,138
|
)
|
17.6
|
%
|
||||||||
Gross profit
|
$
|
20,155
|
$
|
26,636
|
$
|
(6,481
|
)
|
-24.3
|
%
|
|||||||
% of net revenue
|
21.3
|
%
|
24.7
|
%
|
● |
SG&A expenses decreased 2.9% to $30.0 million or 31.6% of net revenue from $30.9 million or 28.7% of net revenue in the comparable year-ago period. The decrease in SG&A expenses was
primarily attributable to a $1.9 million decline in selling expenses partially offset by a $1.0 million increase in general and administrative expenses.
|
● |
Loss from operations totaled $9.8 million compared to a loss from operations of $4.3 million in the comparable year-ago period. The increased loss was due to lower Net revenue and gross margin.
|
● |
Net loss was $12.4 million, compared to a net loss of $2.2 million in the comparable year-ago period.
|
● |
Adjusted EBITDA loss (a non-GAAP metric reconciled below) was $8.9 million, compared to a loss of $3.2 million in the comparable year-ago period.
|
● |
Cash used in operations was $12.2 million, compared to $10.0 million in the comparable year-ago period.
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
(amounts in thousands)
|
October 29,
2022
|
October 30,
2021
|
October 29,
2022
|
October 30,
2021
|
||||||||||||
Net loss
|
$
|
(3,561
|
)
|
$
|
(886
|
)
|
$
|
(12,407
|
)
|
$
|
(2,221
|
)
|
||||
Income tax expense (benefit)
|
-
|
-
|
43
|
46
|
||||||||||||
Other (income) loss
|
-
|
(1,567
|
)
|
-
|
(3,530
|
)
|
||||||||||
Interest expense
|
881
|
439
|
2,544
|
1,455
|
||||||||||||
Loss from operations
|
(2,680
|
)
|
(2,014
|
)
|
(9,820
|
)
|
(4,250
|
)
|
||||||||
Depreciation expense
|
367
|
572
|
961
|
1,064
|
||||||||||||
Adjusted EBITDA
|
$
|
(2,313
|
)
|
$
|
(1,442
|
)
|
$
|
(8,859
|
)
|
$
|
(3,186
|
)
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||
October 29,
2022
|
October 30,
2021
|
October 29,
2022
|
October 30,
2021
|
|||||||||||||
Net revenue
|
$
|
29,145
|
$
|
32,172
|
$
|
94,843
|
$
|
107,680
|
||||||||
Cost of sales
|
22,570
|
24,168
|
74,688
|
81,044
|
||||||||||||
Gross profit
|
6,575
|
8,004
|
20,155
|
26,636
|
||||||||||||
Selling, general and administrative expenses
|
9,255
|
10,018
|
29,975
|
30,886
|
||||||||||||
Loss from operations
|
(2,680
|
)
|
(2,014
|
)
|
(9,820
|
)
|
(4,250
|
)
|
||||||||
Interest expense
|
881
|
439
|
2,544
|
1,455
|
||||||||||||
Other income
|
-
|
(1,567
|
)
|
-
|
(3,530
|
)
|
||||||||||
Loss before income tax expense
|
(3,561
|
)
|
(886
|
)
|
(12,364
|
)
|
(2,175
|
)
|
||||||||
Income tax expense
|
-
|
-
|
43
|
46
|
||||||||||||
Net loss
|
$
|
(3,561
|
)
|
$
|
(886
|
)
|
$
|
(12,407
|
)
|
$
|
(2,221
|
)
|
||||
BASIC AND DILUTED LOSS PER SHARE:
|
||||||||||||||||
Basic and diluted loss per common share
|
$
|
(0.92
|
)
|
$
|
(0.36
|
)
|
$
|
(4.15
|
)
|
$
|
(0.92
|
)
|
||||
Weighted average number of common shares outstanding – basic and diluted
|
3,865
|
2,491
|
2,990
|
2,404
|
October 29,
2022
|
January 29,
2022
|
October 30,
2021
|
||||||||||
ASSETS
|
Unaudited
|
Unaudited
|
||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
769
|
$
|
1,218
|
$
|
1,754
|
||||||
Restricted cash
|
1,158
|
1,158
|
1,158
|
|||||||||
Accounts receivable
|
2,796
|
2,335
|
2,566
|
|||||||||
Merchandise inventory
|
37,353
|
29,277
|
30,248
|
|||||||||
Prepaid expenses and other current assets
|
706
|
649
|
760
|
|||||||||
Total current assets
|
42,782
|
34,637
|
36,486
|
|||||||||
Restricted cash
|
1,601
|
2,447
|
2,732
|
|||||||||
Fixed assets, net
|
2,140
|
2,335
|
2,251
|
|||||||||
Operating lease right-of-use assets
|
1,678
|
2,144
|
2,284
|
|||||||||
Intangible assets, net
|
-
|
-
|
-
|
|||||||||
Cash Surrender Value
|
3,563
|
4,154
|
4,413
|
|||||||||
Other assets
|
682
|
965
|
1,074
|
|||||||||
TOTAL ASSETS
|
$
|
52,446
|
$
|
46,682
|
$
|
49,240
|
||||||
LIABILITIES
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts payable
|
$
|
12,648
|
$
|
6,271
|
$
|
6,743
|
||||||
Short-term borrowings
|
9,494
|
9,966
|
5,858
|
|||||||||
Accrued expenses and other current liabilities
|
1,962
|
2,362
|
2,685
|
|||||||||
Current portion of operating lease liabilites
|
634
|
649
|
636
|
|||||||||
Total current liabilities
|
24,738
|
19,248
|
15,922
|
|||||||||
Operating lease liabilities
|
1,253
|
1,608
|
1,764
|
|||||||||
Long-term debt
|
9,163
|
4,356
|
4,161
|
|||||||||
Other long-term liabilities
|
13,590
|
14,185
|
15,515
|
|||||||||
TOTAL LIABILITIES
|
48,744
|
39,397
|
37,362
|
|||||||||
SHAREHOLDERS' EQUITY
|
||||||||||||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)
|
-
|
-
|
-
|
|||||||||
Common stock ($0.01 par value; 200,000,000 shares authorized; 5,321,985, 3,902,985 and 3,902,985 shares issued, respectively)
|
53
|
39
|
39
|
|||||||||
Additional paid-in capital
|
263,766
|
359,220
|
359,100
|
|||||||||
Treasury stock at cost 467,069, 1,410,378 and 1,410,378 shares, respectively)
|
(125,906
|
)
|
(230,170
|
)
|
(230,170
|
)
|
||||||
Accumulated other comprehensive loss
|
(910
|
)
|
(910
|
)
|
(2,007
|
)
|
||||||
Accumulated deficit
|
(133,301
|
)
|
(120,894
|
)
|
(115,084
|
)
|
||||||
TOTAL SHAREHOLDERS' EQUITY
|
3,702
|
7,285
|
11,878
|
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
52,446
|
$
|
46,682
|
$
|
49,240
|
Document and Entity Information |
Dec. 13, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Dec. 13, 2022 |
Entity File Number | 0-14818 |
Entity Registrant Name | Kaspien Holdings Inc. |
Entity Central Index Key | 0000795212 |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 14-1541629 |
Entity Address, Address Line One | 2818 N. Sullivan Rd. |
Entity Address, Address Line Two | Ste 130 |
Entity Address, City or Town | Spokane Valley |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 99216 |
City Area Code | 855 |
Local Phone Number | 300-2710 |
Title of 12(b) Security | Common shares, $0.01 par value per share |
Trading Symbol | KSPN |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
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