TILE SHOP HOLDINGS, INC. [TTSH] Filings

10-Q 1 ttsh-20230930x10q.htm 10-Q ttsh-20230930x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________

FORM 10-Q

_____________________________

(Mark One)


x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from – to –

Commission file number: 001-35629

_____________________________

TILE SHOP HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

_____________________________


Delaware	45-5538095
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


14000 Carlson Parkway
Plymouth, Minnesota	55441
(Address of principal executive offices)	(Zip Code)

(763) 852-2950

(Registrant’s telephone number, including area code)

_____________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value

TTSH

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	x
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

As of October 30, 2023, there were 44,530,888 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.

Table of Contents

TILE SHOP HOLDINGS, INC.

Table of Contents


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Stockholders’ Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	27
Signatures		28

‎

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Tile Shop Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except per share data)



	September 30,		December 31,
	2023		2022
	(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	16,371	$	5,948
Restricted cash		655		1,811
Receivables, net		3,501		3,411
Inventories		98,710		120,952
Income tax receivable		435		3,859
Other current assets, net		10,352		10,422
Total Current Assets		130,024		146,403
Property, plant and equipment, net		65,133		71,095
Right of use asset		119,619		118,501
Deferred tax assets		4,470		6,536
Other assets		3,461		3,287
Total Assets	$	322,707	$	345,822

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	26,247	$	23,506
Income tax payable		113		3
Current portion of lease liability		27,214		27,866
Other accrued liabilities		32,756		31,916
Total Current Liabilities		86,330		83,291
Long-term debt		10,000		45,400
Long-term lease liability, net		103,786		103,353
Other long-term liabilities		3,836		5,009
Total Liabilities		203,952		237,053

Stockholders’ Equity:
Common stock, par value $0.0001; authorized: 100,000,000 shares; issued and outstanding: 44,561,554 and 44,377,445 shares, respectively		4		4
Preferred stock, par value $0.0001; authorized: 10,000,000 shares; issued and outstanding: 0 shares		-		-
Additional paid-in capital		128,582		127,997
Accumulated deficit		(9,745)		(19,180)
Accumulated other comprehensive loss		(86)		(52)
Total Stockholders' Equity		118,755		108,769
Total Liabilities and Stockholders' Equity	$	322,707	$	345,822

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

Tile Shop Holdings, Inc. and Subsidiaries

Consolidated Statements of Income

(dollars in thousands, except per share data)

(unaudited)



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net sales	$	92,112	$	97,154	$	292,688	$	307,230
Cost of sales		32,549		32,542		104,285		104,754
Gross profit		59,563		64,612		188,403		202,476
Selling, general and administrative expenses		56,734		59,109		173,715		182,459
Income from operations		2,829		5,503		14,688		20,017
Interest expense		(453)		(319)		(1,920)		(786)
Income before income taxes		2,376		5,184		12,768		19,231
Provision for income taxes		(532)		(1,361)		(3,333)		(4,981)
Net income	$	1,844	$	3,823	$	9,435	$	14,250

Income per common share:
Basic	$	0.04	$	0.08	$	0.22	$	0.28
Diluted	$	0.04	$	0.08	$	0.22	$	0.28

Weighted average shares outstanding:
Basic		43,522,768		50,423,923		43,385,316		50,674,870
Diluted		43,733,706		50,717,426		43,555,988		51,080,404

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

Tile Shop Holdings, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(dollars in thousands)

(unaudited)



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income	$	1,844	$	3,823	$	9,435	$	14,250
Currency translation adjustment		(3)		(46)		(34)		(87)
Other comprehensive income		(3)		(46)		(34)		(87)
Comprehensive income	$	1,841	$	3,777	$	9,401	$	14,163

See accompanying Notes to Consolidated Financial Statements.

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Table of Contents

Tile Shop Holdings, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

(dollars in thousands)

(unaudited)



	Common stock
	Shares	Amount		Additional ‎paid-in ‎capital		Accumulated ‎deficit		Accumulated ‎other ‎comprehensive ‎income (loss)		Total
Balance at June 30, 2022	52,270,922	$	5	$	127,298	$	5,714	$	(29)	$	132,988
Cancellation of restricted shares	(77,292)		-		-		-		-		-
Stock based compensation	-		-		563		-		-		563
Tax withholdings related to net share settlements of stock based compensation awards	(14,678)		-		(48)		-		-		(48)
Repurchases of common stock	(4,094,592)		-		-		(15,545)		-		(15,545)
Foreign currency translation adjustments	-		-		-		-		(46)		(46)
Net income	-		-		-		3,823		-		3,823
Balance at September 30, 2022	48,084,360	$	5	$	127,813	$	(6,008)	$	(75)	$	121,735

Balance at June 30, 2023	44,567,055	$	4	$	128,257	$	(11,589)	$	(83)	$	116,589
Issuance of common stock upon exercise of options	1,790		-		4		-		-		4
Stock based compensation	-		-		366		-		-		366
Tax withholdings related to net share settlements of stock based compensation awards	(7,291)		-		(45)		-		-		(45)
Foreign currency translation adjustments	-		-		-		-		(3)		(3)
Net income	-		-		-		1,844		-		1,844
Balance at September 30, 2023	44,561,554	$	4	$	128,582	$	(9,745)	$	(86)	$	118,755

See accompanying Notes to Consolidated Financial Statements.

‎

Table of Contents

Tile Shop Holdings, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

(dollars in thousands)

(unaudited)



	Common stock
	Shares	Amount		Additional ‎paid-in ‎capital		Accumulated ‎deficit		Accumulated ‎other ‎comprehensive ‎income (loss)		Total
Balance at December 31, 2021	51,963,377	$	5	$	126,920	$	(4,713)	$	12	$	122,224
Issuance of restricted shares	592,396		-		-		-		-		-
Cancellation of restricted shares	(258,038)		-		-		-		-		-
Stock based compensation	-		-		1,617		-		-		1,617
Tax withholdings related to net share settlements of stock based compensation awards	(118,783)		-		(724)		-		-		(724)
Repurchases of common stock	(4,094,592)		-		-		(15,545)		-		(15,545)
Foreign currency translation adjustments	-		-		-		-		(87)		(87)
Net income	-		-		-		14,250		-		14,250
Balance at September 30, 2022	48,084,360	$	5	$	127,813	$	(6,008)	$	(75)	$	121,735

Balance at December 31, 2022	44,377,445	$	4	$	127,997	$	(19,180)

TILE SHOP HOLDINGS, INC. [TTSH] Filings
10-Q	[2023-11-03]
10-Q	[2023-08-03]
10-Q	[2023-05-04]
10-K	[2023-03-02]
10-Q	[2022-11-03]
10-Q	[2022-08-04]
10-Q	[2022-05-06]
10-K	[2022-03-03]
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-07]
10-K	[2021-03-11]
10-Q	[2020-11-09]
10-Q	[2020-08-06]
10-Q	[2020-05-08]
10-K	[2020-03-13]
10-Q	[2019-11-04]
10-Q	[2019-08-02]
10-Q	[2019-05-09]
10-K	[2019-02-26]
10-Q	[2018-10-26]
10-Q	[2018-08-01]
10-Q	[2018-04-27]
10-K	[2018-02-21]
10-Q	[2017-10-26]
10-Q	[2017-08-04]
10-Q	[2017-04-27]
10-K	[2017-02-24]
10-Q	[2016-10-27]
10-Q	[2016-08-05]
10-Q	[2016-04-28]
10-K	[2016-02-26]
10-Q	[2015-10-28]
10-Q	[2015-08-04]
10-Q	[2015-05-01]
10-K	[2015-02-27]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
10-Q	[2014-05-09]
10-K	[2014-02-28]
10-Q	[2013-11-06]
10-Q	[2013-08-08]
S-1	[2013-05-24]
10-Q	[2013-05-10]
10-K	[2013-03-18]
S-1	[2012-11-28]
10-Q	[2012-11-09]