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Franchise Group, Inc. announced the results of its second quarter ended June 27, 2020. For the second quarter of 2020, total reported revenue for Franchise Group was $512.6 million, GAAP Net Loss was $21.7 million or $0.62 per share, Proforma Adjusted EBITDA was $62.7 million and Non-GAAP EPS was $0.53 per share. In calculating GAAP EPS, the Company utilized approximately 35 million weighted average fully diluted shares of common stock outstanding for the second quarter. In calculating Non-GAAP EPS and formulating guidance, the Company utilized approximately 40 million fully diluted shares of common stock outstanding which accounts for the recent underwritten public offering of 4.8 million shares. The net proceeds from the follow-on offering closed after the end of the quarter and is not included in the end of quarter cash balance of $105.5 million. Total outstanding debt at the end of the second quarter was $740.6 million.<\/p>\n
During the second quarter of 2020, Franchise Group priced an approximate $106 million follow-on offering of common stock, reduced debt by $70.9 million and declared another quarterly dividend of $0.25 per share. The Company’s business model was extremely resilient during the height of Covid-19 and was able to exceed its plan for the quarter due to strong revenue and continued achievement of operational efficiencies. <\/p>\n
Brian Kahn, Franchise Group’s President and CEO stated, “Our businesses continued to benefit from the shift in consumer spending. Our associates have maintained their dedication to our businesses and have again delivered robust financial results despite difficult circumstances. Our performance through fiscal July, to begin the third quarter, continues to demonstrate resilience and is allowing us to further raise guidance for the full fiscal year.”<\/p>\n
The Company has four reportable segments: American Freight; The Vitamin Shoppe; Liberty Tax and Buddy’s. The following table summarizes revenue, net loss and proforma adjusted EBITDA by these segments. A reconciliation of Proforma Adjusted EBITDA to the most comparable GAAP measure is included below.<\/p>\n
| <\/td>\n | For the Three Months<\/strong><\/td>\n<\/tr>\n| <\/td>\n | Ended June 27, 2020<\/strong><\/td>\n<\/tr>\n | <\/td>\n | <\/td>\n | <\/td>\n | Proforma<\/strong> | <\/strong><\/td>\n <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | <\/td>\n | <\/td>\n | <\/td>\n | Adjusted<\/strong> | <\/strong><\/td>\n <\/td>\n | <\/td>\n | Net<\/strong><\/td>\n<\/tr>\n | <\/td>\n | Revenue<\/strong><\/td>\n | <\/td>\n | EBITDA<\/strong> | <\/strong><\/td>\n <\/td>\n | <\/td>\n | Income\/(Loss)<\/strong><\/td>\n<\/tr>\n | <\/td>\n | (In thousands)<\/strong><\/td>\n<\/tr>\n | American Freight<\/td>\n | $<\/td>\n | 234,427<\/td>\n | <\/td>\n | $<\/td>\n | 40,384<\/td>\n | <\/td>\n | <\/td>\n | $<\/td>\n | (6,747<\/td>\n | )<\/td>\n<\/tr>\n | Vitamin Shoppe<\/td>\n | <\/td>\n | 237,735<\/td>\n | <\/td>\n | <\/td>\n | 16,292<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | (3,961<\/td>\n | )<\/td>\n<\/tr>\n | Liberty Tax<\/td>\n | <\/td>\n | 15,073<\/td>\n | <\/td>\n | <\/td>\n | (538<\/td>\n | )<\/td>\n | <\/td>\n | <\/td>\n | (7,322<\/td>\n | )<\/td>\n<\/tr>\n | Buddy’s<\/td>\n | <\/td>\n | 25,392<\/td>\n | <\/td>\n | <\/td>\n | 7,037<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | 1,522<\/td>\n | <\/td>\n<\/tr>\n | Corporate<\/td>\n | <\/td>\n | –<\/td>\n | <\/td>\n | <\/td>\n | (452<\/td>\n | )<\/td>\n | <\/td>\n | <\/td>\n | (5,434<\/td>\n | )<\/td>\n<\/tr>\n | Total<\/td>\n | $<\/td>\n | 512,627<\/td>\n | <\/td>\n | $<\/td>\n | 62,723<\/td>\n | <\/td>\n | <\/td>\n | $<\/td>\n | (21,942<\/td>\n | )<\/td>\n<\/tr>\n | Net income (loss) attributable to non-controlling interest<\/td>\n | <\/td>\n | <\/td>\n | 269<\/td>\n | <\/td>\n<\/tr>\n | Net income (loss) attributable to Franchise Group, Inc.<\/td>\n | <\/td>\n | $<\/td>\n | (21,673<\/td>\n | )<\/td>\n<\/tr>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | Outlook <\/strong>(1)<\/sup><\/strong><\/p>\n For fiscal 2020, we believe we will exceed our previous guidance of $240 million of Proforma Adjusted EBITDA and $2.60 of Non-GAAP EPS and now expect Proforma Adjusted EBITDA to exceed $255 million and Non-GAAP EPS of over $2.70. Please note that our $2.70 of Non-GAAP EPS includes approximately $0.30 pro forma dilution from our recent follow-on offering and excludes any assumption for acquisitions, divestitures or refranchising activity.<\/p>\n |