IPO Hits The Container Store's Earnings
Jan 08, 2014 03:19PM
● By Anonymous
The Container Store is a neat freaks best safe haven and has also become a safe bet for investors following its initial public offering in November.
The retailer is a local business to keep an eye on going into the New Year. In fact, The Container Store announced its financial results for the third quarter, posting an increase of net sales to $188.3 million, up 7.3% from last year.
“We are pleased with our operating results in the third quarter,” says The Container Store CEO and chairman Kip Tindell. “These results demonstrate the strength of our differentiated business model, brand awareness, unique employee-first culture and solid execution by the entire team at The Container Store.”
While sales gains remained strong, costs associated with its debut on the New York Stock Exchange as well as distributions to shareholders weighed down results.
Coppell’s own organization retailer reported a net loss of $25.1 million, or $1.39 a share, for the third quarter, down from a net loss of $15.6 million, or $5.32 a share, a year earlier. The interesting part is this quarter included $14.6 million in IPO-related stock-based expenses and an additional $15.6 million in payments to shareholders, down from $22.5 million of shareholder distribution a year ago.
However, it’s important to note that the company opened two new stores, ending the quarter with 63 stores in 22 states and the District of Columbia. Additionally, the retailer opened six new stores, including the relocation of one undersized, older format store for the year.
Overall, the company ended the quarter with $10. 8 million in cash and $368.5 million in total debt, which is mainly due to its 2007 buyout by Leonard & Partners.
Leonard Green currently owns 60% of the company and roughly 27% was sold to the public after its IPO. Additionally, about 13% of employees and insiders hold a stake in The Container Store.“During the third quarter we reached a significant milestone with our successful initial public offering,” Tindell states. “We couldn’t have been more thrilled, humbled and honored by the reception we received from the market. By taking this path, we are also able to facilitate broader employee ownership of The Container Store, increasing our ability to operate a business where everyone associated with it thrives. We look forward to continuing to deliver long-term value for all of our stakeholders.”