e.l.f. Magnificence Broadcasts First Quarter Fiscal 2023 Outcomes

OAKLAND, Calif.–(BUSINESS WIRE)–e.l.f. Magnificence (NYSE: ELF) immediately introduced outcomes for the three months ended June 30, 2022.

“I’m pleased with the e.l.f. Magnificence group for reaching our fourteenth consecutive quarter of internet gross sales development,” mentioned Tarang Amin, e.l.f. Magnificence’s Chairman and Chief Govt Officer. “We proceed to considerably outperform our competitors. Within the first quarter, we have been the quickest rising high 5 colour cosmetics model and expanded our market share by 120 foundation factors, in accordance with Nielsen. We’re persevering with to lean into our strengths—our core worth proposition, innovation engine, and talent to draw and interact customers—and are happy to lift our Fiscal 2023 outlook.”

Three Months Ended June 30, 2022 Outcomes

For the three months ended June 30, 2022, in comparison with the three months ended June 30, 2021:

  • Web gross sales elevated 26% to $122.6 million, primarily pushed by energy in our nationwide and worldwide retailers.
  • Gross margin elevated roughly 390 foundation factors to 68%, primarily pushed by value will increase, value financial savings, and product combine, which helped to mitigate the affect of upper transportation prices within the quarter.
  • Promoting, basic and administrative bills (“SG&A”) elevated $10.8 million to $61.6 million or 50% of internet gross sales. Adjusted SG&A elevated $9.4 million to $55.0 million, or 45% of internet gross sales. The rise was primarily as a result of a rise in compensation and advantages and advertising and marketing and digital spend.
  • The provision for earnings taxes was $4.6 million.
  • Web earnings was $14.5 million on a GAAP foundation. Adjusted internet earnings (internet earnings excluding the gadgets recognized within the reconciliation desk under) was $21.1 million.
  • Diluted earnings per share have been $0.27 on a GAAP foundation. Adjusted diluted earnings per share (diluted earnings per share calculated with adjusted internet earnings excluding the gadgets recognized within the reconciliation desk under) have been $0.39.
  • Adjusted EBITDA (EBITDA excluding the gadgets recognized within the reconciliation desk under) was $31.7 million, or 26% of internet gross sales, up 46% 12 months over 12 months.

Stability Sheet

As of June 30, 2022, the Firm had $72.2 million in money and money equivalents and $89.7 million in long-term debt and finance lease obligations, as in comparison with $63.4 million in money and money equivalents and $95.3 million of long-term debt and finance lease obligations as of June 30, 2021.

Up to date Fiscal 2023 Outlook

The Firm is offering the next up to date outlook for fiscal 2023. The up to date outlook for fiscal 2023 displays an anticipated 14-16% year-over-year improve in internet gross sales, as in comparison with an anticipated 10-12% year-over-year improve beforehand.

 

Up to date Fiscal 2023 Outlook

Earlier Fiscal 2023 Outlook

Web gross sales

$448-456 million

$432-440 million

Adjusted EBITDA

$83.5-85.0 million

$80.5-82.0 million

Adjusted efficient tax charge

25-26%

27-28%

Adjusted internet earnings

$47.0-48.5 million

$43.5-45.5 million

Adjusted diluted earnings per share

$0.84-0.87

$0.78-0.81

Weighted common diluted shares excellent

56 million

56 million

Webcast Particulars

The Firm will maintain a webcast to debate the outcomes from its first quarter fiscal 2023 immediately, August 3, 2022, at 4:30 p.m. Jap Time. The webcast might be broadcast stay at https://investor.elfbeauty.com/news-and-events/occasions. For these unable to hearken to the stay broadcast, an archived model might be obtainable on the identical location.

About e.l.f. Magnificence

e.l.f. Magnificence, Inc. builds manufacturers designed to disrupt trade norms, form tradition and join communities by positivity, inclusivity and accessibility. Our deep dedication to scrub, cruelty free magnificence at an unbelievable worth has fueled the success of our flagship model e.l.f. Cosmetics since 2004 and pushed our portfolio growth. At the moment, our multi-brand portfolio contains e.l.f. Cosmetics, e.l.f. SKIN, pioneering clear magnificence model Properly Folks and Keys Soulcare, a groundbreaking life-style magnificence model created with Alicia Keys. Our household of manufacturers is offered on-line and throughout main magnificence, mass market and clear magnificence specialty retailers within the U.S., and has a rising worldwide presence.

Be taught extra by visiting investor.elfbeauty.com.

Word Concerning non-GAAP Monetary Measures

This press launch contains references to non-GAAP measures, together with adjusted EBITDA, adjusted internet earnings and adjusted diluted earnings per share. The Firm presents these non-GAAP measures as a result of its administration makes use of them as supplemental measures in assessing its working efficiency, and believes they’re useful to traders, securities analysts and different events in evaluating the Firm’s efficiency. The non-GAAP measures included on this press launch aren’t measurements of monetary efficiency underneath GAAP they usually shouldn’t be thought-about as alternate options to measures of efficiency derived in accordance with GAAP. As well as, these non-GAAP measures shouldn’t be construed as an inference that the Firm’s future outcomes might be unaffected by uncommon or non-recurring gadgets. These non-GAAP measures have limitations as analytical instruments, and you shouldn’t think about such measures both in isolation or as substitutes for analyzing the Firm’s outcomes as reported underneath GAAP. The Firm’s definitions and calculations of those non-GAAP measures aren’t essentially akin to different equally titled measures utilized by different corporations as a result of totally different strategies of calculation.

Adjusted EBITDA excludes prices or positive aspects associated to restructuring of operations, stock-based compensation, loss on extinguishment of debt and different non-cash and non-recurring gadgets. Such different non-cash or non-recurring gadgets traditionally embody different authorized settlements, pre-launch prices to develop the Firm’s model, Keys Soulcare, third-party prices associated to M&A due diligence, and amortization of internal-use software program prices associated to cloud purposes. Adjusted SG&A excludes prices associated to stock-based compensation and different non-cash and non-recurring gadgets. Such different non-cash or non-recurring gadgets traditionally embody different authorized settlements, pre-launch prices to develop the Firm’s model, Keys Soulcare and third-party prices associated to M&A due diligence. Adjusted efficient tax charge is the tax charge when excluding the pre-tax affect of prices or positive aspects associated to restructuring of operations, stock-based compensation, different non-cash and non-recurring gadgets, amortization of acquired intangible belongings, in addition to the associated tax affect for these things, calculated using the statutory charge for the place the affect was incurred. Adjusted internet earnings excludes prices or positive aspects associated to restructuring of operations, stock-based compensation, loss on extinguishment of debt, different non-cash and non-recurring gadgets, amortization of acquired intangible belongings and the tax affect of the foregoing changes. Such different non-cash or non-recurring gadgets, which traditionally embody different authorized settlements, pre-launch prices to develop the Firm’s model and third-party prices associated to M&A due diligence.

With respect to the Firm’s expectations underneath “Up to date Fiscal 2023 Outlook” above, the Firm is just not in a position to present a quantitative reconciliation of the adjusted EBITDA, adjusted internet earnings and adjusted diluted earnings per share steerage non-GAAP measures to the corresponding internet earnings and diluted earnings per share GAAP measures with out unreasonable efforts. The Firm can not present significant estimates of the non-recurring costs and credit excluded from these non-GAAP measures as a result of forward-looking nature of those estimates and their inherent variability and uncertainty. For a similar causes, the Firm is unable to deal with the possible significance of the unavailable info.

Ahead-looking Statements

This press launch accommodates forward-looking statements inside the that means of the federal securities legal guidelines, together with these statements referring to the Firm’s outlook for fiscal 2023 underneath “Up to date Fiscal 2023 Outlook” above and people statements that the Firm is constant to lean into its strengths—its core worth proposition, innovation engine, and talent to draw and interact customers. Though the Firm believes that the expectations mirrored within the forward-looking statements are cheap, precise outcomes and the timing of chosen occasions might differ materially from these expectations. Elements that would trigger precise outcomes to vary materially from these within the ahead trying statements embody, amongst different issues, the dangers and uncertainties which might be described within the Firm’s most up-to-date Annual Report on Type 10-Okay, as up to date on occasion within the Firm’s SEC filings, in addition to the Firm’s skill to successfully compete with different magnificence corporations; the Firm’s skill to efficiently introduce new merchandise; the Firm’s skill to draw new retail clients and/or broaden enterprise with its present retail clients; the Firm’s skill to optimize shelf area at its key retail clients; the lack of any of the Firm’s key retail clients or if the overall enterprise efficiency of its key retail clients declines; the Firm’s skill to successfully handle its SG&A and different bills; and the uncertainty relating to the affect of the COVID-19 pandemic. Potential traders are urged to contemplate these components rigorously in evaluating the forward-looking statements. These forward-looking statements communicate solely as of the date hereof. Besides as required by regulation, the Firm assumes no obligation to replace or revise these forward-looking statements for any cause, even when new info turns into obtainable sooner or later.

e.l.f. Magnificence, Inc. and subsidiaries

Condensed consolidated statements of operations and complete earnings

(unaudited)

(in hundreds, besides share and per share knowledge)

 

 

 

Three months ended June 30,

 

 

 

2022

 

 

 

2021

 

Web gross sales

 

$

122,601

 

 

$

97,047

 

Value of gross sales

 

 

39,616

 

 

 

35,141

 

Gross revenue

 

 

82,985

 

 

 

61,906

 

Promoting, basic and administrative bills

 

 

61,555

 

 

 

50,749

 

Restructuring earnings

 

 

 

 

 

(14

)

Working earnings

 

 

21,430

 

 

 

11,171

 

Different expense, internet

 

 

(1,663

)

 

 

(162

)

Curiosity expense, internet

 

 

(663

)

 

 

(745

)

Loss on extinguishment of debt

 

 

 

 

 

(460

)

Earnings earlier than provision for earnings taxes

 

 

19,104

 

 

 

9,804

 

Earnings tax provision

 

 

(4,635

)

 

 

(1,528

)

Web earnings

 

$

14,469

 

 

$

8,276

 

Complete earnings

 

$

14,469

 

 

$

8,276

 

 

 

 

 

 

Web earnings per share:

 

 

 

 

Primary

 

$

0.28

 

 

$

0.16

 

Diluted

 

$

0.27

 

 

$

0.15

 

Weighted common shares excellent:

 

 

 

 

Primary

 

 

51,707,160

 

 

 

50,544,573

 

Diluted

 

 

53,834,732

 

 

 

53,408,443

 

e.l.f. Magnificence, Inc. and subsidiaries

Condensed consolidated stability sheets

(unaudited)

(in hundreds, besides share and per share knowledge)

 

 

 

June 30, 2022

 

March 31, 2022

 

June 30, 2021

Property

 

 

 

 

 

 

Present belongings:

 

 

 

 

 

 

Money and money equivalents

 

$

72,248

 

 

$

43,353

 

 

$

63,402

 

Accounts receivable, internet

 

 

52,281

 

 

 

45,567

 

 

 

43,127

 

Stock, internet

 

 

70,339

 

 

 

84,498

 

 

 

54,528

 

Pay as you go bills and different present belongings

 

 

21,772

 

 

 

19,611

 

 

 

21,674

 

Whole present belongings

 

 

216,640

 

 

 

193,029

 

 

 

182,731

 

Property and tools, internet

 

 

9,339

 

 

 

10,577

 

 

 

15,561

 

Intangible belongings, internet

 

 

84,132

 

 

 

86,163

 

 

 

92,256

 

Goodwill

 

 

171,620

 

 

 

171,620

 

 

 

171,620

 

Investments

 

 

2,875

 

 

 

2,875

 

 

 

2,875

 

Different belongings

 

 

29,251

 

 

 

30,368

 

 

 

33,349

 

Whole belongings

 

$

513,857

 

 

$

494,632

 

 

$

498,392

 

 

 

 

 

 

 

 

Liabilities and stockholders’ fairness

 

 

 

 

 

 

Present liabilities:

 

 

 

 

 

 

Present portion of long-term debt and capital lease obligations

 

$

5,793

 

 

$

5,786

 

 

$

32,247

 

Accounts payable

 

 

16,023

 

 

 

19,227

 

 

 

17,113

 

Accrued bills and different present liabilities

 

 

39,916

 

 

 

40,004

 

 

 

33,617

 

Whole present liabilities

 

 

61,732

 

 

 

65,017

 

 

 

82,977

 

Lengthy-term debt and finance lease obligations

 

 

89,684

 

 

 

91,080

 

 

 

95,254

 

Deferred tax liabilities

 

 

13,538

 

 

 

9,593

 

 

 

17,750

 

Lengthy-term working lease obligations

 

 

14,637

 

 

 

15,744

 

 

 

19,053

 

Different long-term liabilities

 

 

817

 

 

 

769

 

 

 

736

 

Whole liabilities

 

 

180,408

 

 

 

182,203

 

 

 

215,770

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ fairness:

 

 

 

 

 

 

Frequent inventory, par worth of $0.01 per share; 250,000,000 shares approved as of June 30, 2022, March 31, 2022 and June 30, 2021; 52,424,445, 52,243,764 and 51,826,156 shares issued and excellent as of June 30, 2022, March 31, 2022 and June 30, 2021, respectively

 

 

517

 

 

 

515

 

 

 

508

 

Extra paid-in capital

 

 

801,992

 

 

 

795,443

 

 

 

779,137

 

Gathered deficit

 

 

(469,060

)

 

 

(483,529

)

 

 

(497,023

)

Whole stockholders’ fairness

 

 

333,449

 

 

 

312,429

 

 

 

282,622

 

Whole liabilities and stockholders’ fairness

 

$

513,857

 

 

$

494,632

 

 

$

498,392

 

e.l.f. Magnificence, Inc. and subsidiaries

Condensed consolidated statements of money flows

(unaudited)

(in hundreds)

 

 

 

Three months ended June 30,

 

 

 

2022

 

 

 

2021

 

Money flows from working actions:

 

 

 

 

Web earnings

 

$

14,469

 

 

$

8,276

 

Changes to reconcile internet earnings to internet money offered by working actions:

 

 

 

 

Depreciation and amortization

 

 

5,724

 

 

 

6,222

 

Restructuring earnings

 

 

 

 

 

(14

)

Inventory-based compensation expense

 

 

6,542

 

 

 

4,280

 

Amortization of debt issuance prices and low cost on debt

 

 

91

 

 

 

118

 

Deferred earnings taxes

 

 

3,945

 

 

 

4,271

 

Loss on extinguishment of debt

 

 

 

 

 

460

 

Different, internet

 

 

21

 

 

 

97

 

Modifications in working belongings and liabilities:

 

 

 

 

Accounts receivable

 

 

(6,727

)

 

 

(2,971

)

Inventories

 

 

14,158

 

 

 

2,320

 

Pay as you go bills and different belongings

 

 

(3,258

)

 

 

(7,131

)

Accounts payable and accrued bills

 

 

(3,442

)

 

 

(7,419

)

Different liabilities

 

 

(945

)

 

 

(1,017

)

Web money offered by working actions

 

 

30,578

 

 

 

7,492

 

 

 

 

 

 

Money flows from investing actions:

 

 

 

 

Buy of property and tools

 

 

(241

)

 

 

(2,336

)

Web money utilized in investing actions

 

 

(241

)

 

 

(2,336

)

 

 

 

 

 

Money flows from financing actions:

 

 

 

 

Proceeds from revolving line of credit score

 

 

 

 

 

26,480

 

Proceeds from long-term debt

 

 

 

 

 

25,581

 

Compensation of long-term debt

 

 

(1,250

)

 

 

(50,775

)

Debt issuance prices paid

 

 

 

 

 

(1,064

)

Money acquired from issuance of frequent inventory

 

 

2

 

 

 

463

 

Different, internet

 

 

(194

)

 

 

(207

)

Web money (utilized in) offered by financing actions

 

 

(1,442

)

 

 

478

 

 

 

 

 

 

Web improve in money and money equivalents

 

 

28,895

 

 

 

5,634

 

Money and money equivalents – starting of interval

 

 

43,353

 

 

 

57,768

 

Money and money equivalents – finish of interval

 

$

72,248

 

 

$

63,402

 

e.l.f. Magnificence, Inc. and subsidiaries

Reconciliation of GAAP internet earnings to non-GAAP adjusted EBITDA

(unaudited)

(in hundreds)

 

 

 

Three months ended June 30,

 

 

 

2022

 

 

2021

 

Web earnings

 

$

14,469

 

$

8,276

 

Curiosity expense, internet

 

 

663

 

 

745

 

Earnings tax provision

 

 

4,635

 

 

1,528

 

Depreciation and amortization

 

 

4,693

 

 

5,121

 

EBITDA

 

$

24,460

 

$

15,670

 

Restructuring earnings (a)

 

 

 

 

(14

)

Inventory-based compensation

 

 

6,542

 

 

4,280

 

Loss on extinguishment of debt (b)

 

 

 

 

460

 

Different non-cash and non-recurring gadgets (c)

 

 

679

 

 

1,302

 

Adjusted EBITDA

 

$

31,681

 

$

21,698

 

(a) Restructuring earnings throughout the three months ended June 30, 2021, pertains to the closure of the Firm’s manufacturing plant, together with impairment of belongings, the disposal of extra stock available on the plant, the termination of producing staff and sub lease earnings.

(b) Loss on extinguishment of debt contains the write-off of present debt issuance prices and sure charges paid associated to the amended credit score settlement.

(c) Represents varied non-cash or non-recurring gadgets, which traditionally embody different authorized settlements, pre-launch prices to develop the Firm’s model, Keys Soulcare, third-party prices associated to M&A due diligence, and amortization of internal-use software program prices associated to cloud purposes.

e.l.f. Magnificence, Inc. and subsidiaries

Reconciliation of GAAP SG&A to non-GAAP adjusted SG&A

(unaudited)

(in hundreds)

 

 

Three months ended June 30,

 

 

2022

 

 

 

2021

 

Promoting, basic and administrative bills

$

61,555

 

 

$

50,749

 

Inventory-based compensation

 

(6,549

)

 

 

(4,190

)

Different non-cash and non-recurring gadgets (a)

 

 

 

 

(997

)

Adjusted promoting, basic and administrative bills

$

55,006

 

 

$

45,562

 

(a) Represents varied non-cash or non-recurring gadgets, which traditionally embody different authorized settlements, pre-launch prices to develop the Firm’s model, Keys Soulcare, and third-party prices associated to M&A due diligence.

e.l.f. Magnificence, Inc. and subsidiaries

Reconciliation of GAAP internet earnings to non-GAAP adjusted internet earnings

(unaudited)

(in hundreds, besides share and per share knowledge)

 

 

 

Three months ended June 30,

 

 

 

2022

 

 

 

2021

 

Web earnings

 

$

14,469

 

 

$

8,276

 

Restructuring earnings (a)

 

 

 

 

 

(14

)

Inventory-based compensation

 

 

6,542

 

 

 

4,280

 

Different non-cash and non-recurring gadgets (b)

 

 

 

 

 

997

 

Loss on extinguishment of debt (c)

 

 

 

 

 

460

 

Amortization of acquired intangible belongings (d)

 

 

2,031

 

 

 

2,031

 

Tax Impression (e)

 

 

(1,917

)

 

 

(1,745

)

Adjusted internet earnings

 

$

21,125

 

 

$

14,285

 

 

 

 

 

 

Weighted common variety of shares excellent – diluted

 

 

53,834,732

 

 

 

53,408,443

 

Adjusted diluted earnings per share

 

$

0.39

 

 

$

0.27

 

(a) Restructuring earnings throughout the three months ended June 30, 2021, pertains to the closure of the Firm’s manufacturing plant, together with impairment of belongings, the disposal of extra stock available on the plant, the termination of producing staff and sub lease earnings.

(b) Represents varied non-cash or non-recurring gadgets, which traditionally embody different authorized settlements, pre-launch prices to develop the Firm’s model, Keys Soulcare, and third-party prices associated to M&A due diligence.

(c) Loss on extinguishment of debt contains the write-off of present debt issuance prices and sure charges paid associated to the amended credit score settlement.

(d) Represents amortization expense of acquired intangible belongings consisting of buyer relationships and emblems.

(e) Represents the tax affect of the above changes.

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