By Christina Mlynski
The Container Store is a neat freaks best safe haven and hasbralso become a safe bet for investors following its initial public offering inbrNovember.
The retailer is a localbrbusiness to keep an eye on going into the New Year. In fact, The ContainerbrStore announced its financial results for the third quarter, posting anbrincrease of net sales to $188.3 million, up 7.3% from last year.
“We are pleased with our operating results in the thirdbrquarter,” says The Container Store CEO and chairman Kip Tindell. “These resultsbrdemonstrate the strength of our differentiated business model, brand awareness,brunique employee-first culture and solid execution by the entire teambrat The Container Store.”
While sales gains remained strong, costs associated with itsbrdebut on the New York Stock Exchange as well as distributions to shareholdersbrweighed down results.
Coppell's own organization retailer reported a net loss ofbr$25.1 million, or $1.39 a share, for the third quarter, down from a net loss ofbr$15.6 million, or $5.32 a share, a year earlier. The interesting part is thisbrquarter included $14.6 million in IPO-related stock-based expenses and an additionalbr$15.6 million in payments to shareholders, down from $22.5 million ofbrshareholder distribution a year ago.
However, it's important to note that the company opened twobrnew stores, ending the quarter with 63 stores in 22 states and the District ofbrColumbia. Additionally, the retailer opened six new stores, including thebrrelocation of one undersized, older format store for the year.
Overall, the company ended the quarter with $10. 8 millionbrin cash and $368.5 million in total debt, which is mainly due to its 2007brbuyout by Leonard & Partners.
Leonard Green currently owns 60% of the company and roughlybr27% was sold to the public after its IPO. Additionally, about 13% of employeesbrand insiders hold a stake in The Container Store.
“During the third quarter we reached abrsignificant milestone with our successful initial public offering,” Tindell states.br“We couldn’t have been more thrilled, humbled and honored by the reception webrreceived from the market. By taking this path, we are also able to facilitatebrbroader employee ownership of The Container Store, increasing our abilitybrto operate a business where everyone associated with it thrives. We lookbrforward to continuing to deliver long-term value for all of our stakeholders.”