DELAWARE, Ohio — Revenue rose 82% in the first quarter of 2022 for Franchise Group Inc. (FRG), owner of top 100 retailers WS Badcock and American Freight as well as Buddy’s.
Revenue for the quarter ended March 26 was $1.135 billion, compared to $621,345 million in the first quarter of 2021. The increase in revenue can likely be attributed to the addition of Badcock to the FRG lineup. , as the retailer was acquired in November. 2021.
Revenue was reported at $12,317 million, or 25 cents per fully diluted share. That figure was down 10.83% from $13,813 million in 2021, or 29 cents per fully diluted share. Total cash on hand was approximately $149.6 million and term debt outstanding was approximately $1.3 billion.
Outstanding term debt does not include repayments of net proceeds received from the sale of $94 million of WS Badcock Corp’s retail real estate portfolio. which closed on March 31. the sale of $18.5 million of Badcock’s corporate headquarters by the end of its second fiscal quarter, as well as an additional sale of other Badcock real estate for approximately $5.6 million by the end of its second fiscal quarter. end of fiscal 2022. It intends to use the net cash proceeds from these real estate sales to repay the remaining $175 million of Badcock acquisition financing.
“I am proud of FRG’s overall performance in the first quarter. FRG’s diversification across various discretionary and non-discretionary products and services has continued to serve us well,” said Brian Kahn, President and CEO of FRG. “I cannot stress enough the resilience and agility of our leadership teams while remaining true to the ethics and value propositions of our brands. Their collective success strengthens the foundations of FRG as we seek to diversify and grow further through strategic internal and external investment opportunities.
By segment, American Freight generated $241.416 million in revenue, a loss of $1.434 million; Badcock added $256.259 million to a loss of $2.859 million; and Buddy’s contributed $15.585 million for a gain of $2.564 million.
Franchise Group reaffirms its previously announced financial outlook for fiscal 2022 with revenue of approximately $4.45 billion, adjusted EBITDA of approximately $450 million and non-GAAP EPS of approximately $5 dollars per share. In formulating its outlook, FRG expects to reduce net debt to less than $1.1 billion by the end of its 2022 fiscal year. To calculate EPS, the company uses approximately 41 million weighted average shares outstanding.
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Thomas Lester is Retail Editor for Furniture Today and Digital Editor for Home Accents Today. A graduate of Emory & Henry College’s mass communication program, Lester spent a dozen years working for newspapers in Virginia and North Carolina covering a range of topics, from community news, government, education, ACC sports, professional baseball and more before joining Furniture Today. in 2013. Contact me with your story ideas, tips and more at tlester@furnituretoday.com.
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