LONDON–(BUSINESS WIRE)–$SHCO–Soho House & Co Inc. (NYSE: SHCO) (“SHCO,” “Company,” “we” or “our”), a global membership platform that connects a vibrant, diverse, and global group of members, today announced results for the first quarter ended March 30, 2025.
First Quarter 2025 Highlights
- Total revenues of $282.9 million, 8.0% year-over-year growth
- Membership revenues grew to $112.9 million, a 14.1% increase year-over-year
-
In-House revenues of $112.4 million, up 1.9% year-over-year
- Revenue Per Available Room (“RevPAR”) was 4% higher year-over-year on a like-for-like basis
- Other revenues of $57.5 million, up 9.1% year-over-year driven by strong growth in Soho Home
- Net income attributable to Soho House & Co Inc. was $8.2 million or $0.04 per share
- Adjusted EBITDA was $47.0 million, an increase from $19.8 million in first quarter 2024
- Net income and Adjusted EBITDA amounts noted above include $22.9 million of business interruption insurance proceeds related to COVID-19 received this quarter
“Our strong quarterly performance gives me confidence that our strategic priorities are resonating with our members around the world, with first quarter total revenues growing by 8% and significant growth in Adjusted EBITDA,” said Andrew Carnie, CEO of Soho House & Co.
«We continue to elevate the Soho House member experience across our existing Houses globally, and with new openings including Soho Farmhouse Ibiza this summer. Our operational transformation is starting to gain real traction and we’re seeing early signs of this in profitability, giving us further confidence in the potential that lies ahead of us.»
«I want to thank our teams for their passion and commitment, and our members for their continued loyalty – especially those in Los Angeles who were affected by the devastating fires earlier this year.»
Transaction Update
As previously announced on December 19, 2024, the Company received an offer from a third-party consortium to take the Company private for $9.00 per share. The Company set up a Special Committee to assess the offer and the parties continue to assess the offer and a potential transaction, however no assurances can be given that the Special Committee’s assessment will result in any change in strategy, or if a transaction will be undertaken. The Company will make a further public comment regarding these matters at such time as there is a material development in the process.
Summary of Unaudited Financial Results for the Quarter Ended March 30, 2025
|
|
For the 13 Weeks Ended |
|
|||||
|
(in thousands, except shares and per share amount unless otherwise noted) |
March 30, 2025 |
|
|
March 31, 2024 |
|
||
|
|
(Unaudited) |
|
|||||
|
Total revenues |
$ |
282,864 |
|
|
$ |
261,944 |
|
|
Membership revenues |
|
112,911 |
|
|
|
98,949 |
|
|
In-House revenues |
|
112,419 |
|
|
|
110,270 |
|
|
Other revenues |
|
57,534 |
|
|
|
52,725 |
|
|
Operating income (loss) |
|
34,894 |
|
|
|
(24,327 |
) |
|
House-Level Contribution(1) |
|
52,320 |
|
|
|
49,471 |
|
|
House-Level Contribution margin (%)(1) |
|
24 |
% |
|
|
25 |
% |
|
Other Contribution(1) |
|
8,120 |
|
|
|
8,577 |
|
|
Other contribution margin (%)(1) |
|
12 |
% |
|
|
14 |
% |
|
Net income (loss) attributable to SHCO(2) |
|
8,168 |
|
|
|
(41,559 |
) |
|
Adjusted EBITDA(1)(2) |
|
46,962 |
|
|
|
19,806 |
|
|
Adjusted EBITDA margin (%)(1) |
|
17 |
% |
|
|
8 |
% |
|
Weighted average Class A and Class B Shares outstanding (basic) |
|
194,463,762 |
|
|
|
195,710,720 |
|
|
Weighted average Class A and Class B Shares outstanding (diluted) |
|
196,669,721 |
|
|
|
195,710,720 |
|
|
Basic income (loss) per share |
$ |
0.04 |
|
|
$ |
(0.21 |
) |
|
Diluted income (loss) per share |
$ |
0.04 |
|
|
$ |
(0.21 |
) |
|
(1) See “Non-GAAP Financial Measures” for reconciliations of Non-GAAP measures to GAAP measures. |
|||||||
|
(2) Includes a total of $22.9 million in business interruption proceeds received and recognized during the 13 weeks ended March 30, 2025 related to the impacts of general business interruption (including lost revenues and additional costs incurred) in the UK due to the COVID-19 pandemic |
|||||||
We delivered the following highlights against our strategic priorities in the first quarter
1. Grow and Enhance Membership
- Key initiatives continue to improve member experience and service in our Houses, as illustrated by high member satisfaction scores
2. Operational Excellence to Drive Profitability
- We achieved first quarter 2025 Adjusted EBITDA of $47.0 million, with Adjusted EBITDA margins of 16.6%
- Adjusted EBITDA benefited from $22.9 million of business interruption and loss recovery insurance proceeds related to COVID-19 that we received in the quarter
- The Company was negatively impacted in the quarter from the Los Angeles wildfires, in respect of which the Company has submitted an insurance claim of $3 million but has not received any proceeds
- Like-for-like Food & Beverage margins at our Houses improved compared to the first quarter 2024
- Focus on driving accommodation performance resulted in 4% RevPAR growth in the first quarter 2025 versus the first quarter 2024
Membership Summary for the Quarter Ended March 30, 2025
|
|
As of |
|
|||||
|
|
March 30, 2025 |
|
|
March 31, 2024 |
|
||
|
|
(Unaudited) |
|
|||||
|
Total Members |
|
269,636 |
|
|
|
261,571 |
|
|
Soho House |
|
212,001 |
|
|
|
198,021 |
|
|
Frozen Members |
|
10,225 |
|
|
|
10,052 |
|
|
Soho Friends |
|
51,479 |
|
|
|
57,432 |
|
|
Soho Works |
|
6,156 |
|
|
|
6,118 |
|
|
Active App Users |
|
215,283 |
|
|
|
204,405 |
|
|
|
|
As of |
|
|||||
|
|
|
March 30, |
|
|
March 31, |
|
||
|
|
|
(Unaudited) |
|
|||||
|
Number of Soho Houses |
|
|
45 |
|
|
|
43 |
|
|
The Americas |
|
|
17 |
|
|
|
16 |
|
|
United Kingdom |
|
|
14 |
|
|
|
13 |
|
|
Europe/RoW |
|
|
14 |
|
|
|
14 |
|
|
Number of Soho House Members |
|
|
212,001 |
|
|
|
198,021 |
|
|
The Americas |
|
|
80,736 |
|
|
|
72,692 |
|
|
United Kingdom |
|
|
73,101 |
|
|
|
71,835 |
|
|
Europe/RoW |
|
|
45,440 |
|
|
|
42,678 |
|
|
All Other |
|
|
12,724 |
|
|
|
10,816 |
|
|
Number of Other Members |
|
|
57,635 |
|
|
|
63,550 |
|
|
The Americas |
|
|
15,714 |
|
|
|
17,037 |
|
|
United Kingdom |
|
|
34,583 |
|
|
|
38,114 |
|
|
Europe/RoW |
|
|
7,338 |
|
|
|
8,399 |
|
|
Number of Total Members |
|
|
269,636 |
|
|
|
261,571 |
|
|
Number of Active App Users |
|
|
215,283 |
|
|
|
204,405 |
|
Memberships
- Total Members grew 3.1% year-over-year to 269,636
- Total Soho House Members grew 7.1% year-over-year to 212,001
- Other Memberships including Soho Friends and Soho Works declined 9.3% year-over-year to 57,635 members.
Financing
- SHCO ended first quarter 2025 with Cash, cash equivalents and restricted cash of $155 million
Non-GAAP Financial Measures
This presentation contains certain financial measures, including Adjusted EBITDA, House-Level Contribution and Margin, Other Contribution and Margin, Net Debt and certain financial measures presented on a Constant Currency basis that are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (‘GAAP’). We refer to these measures as ‘non-GAAP financial measures.’ We use these non-GAAP financial measures when planning, monitoring and evaluating our performance. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues or net income (loss), in each case as recognized in accordance with GAAP. In addition, other companies may calculate one or more of these measures differently, which reduces the usefulness of any such measure as a comparative measure. See below for a definition of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures.
We provide earnings guidance using both GAAP and non-GAAP financial measures. A reconciliation of the Company’s Adjusted EBITDA guidance to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that are made for future changes in foreign exchange and the other adjustments reflected in our reconciliation of historical non-GAAP financial measures, the amounts of which, could be material.
The information in this presentation should be read in conjunction with our Annual and Quarterly Reports on Form 10-K and Form 10-Q and other information that we file with the SEC. The reconciliations of non-GAAP financial measures are an integral part of the information presented herein. You can access these documents on our website, www.sohohouseco.com, free of charge, as well as any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The information contained on our website is not incorporated by reference into, and should not be considered a part of, this presentation.
In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC at www.sec.gov.
The non-GAAP financial measures we use herein are defined by us as follows:
ADJUSTED EBITDA. Adjusted EBITDA is a supplemental measure of our performance. Adjusted EBITDA is defined as Net income (loss) before Depreciation and amortization, Interest expense, net, Income tax (expense) benefit, adjusted to take account of the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These other items include, but are not limited to, Gain (loss) on sale of property and other, net, Share of loss (profit) of equity method investments, Foreign exchange, Share of equity method investments adjusted EBITDA, Share-based compensation expense, impairment of long-lived assets, and other applicable items. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses (income) that do not relate to ongoing business performance.
HOUSE-LEVEL CONTRIBUTION AND MARGIN. House-Level Contribution is defined as House Revenues less In-House operating expenses, which includes expense items such as food and beverage costs, labor costs, variable overheads and fixed costs, such as rent. It does not reflect the impact of depreciation, amortization, impairment, gain or loss on sale of property, general and administrative expenses or other applicable items. House-Level Contribution Margin is defined as House-Level Contribution as a percentage of our House Revenues and is a key determinant of our performance and profitability and our return on the investment we make in each of our Houses. Given that all costs associated with providing our members with the Soho House experience, including the costs associated with maintaining our Houses and providing services to members while in the Houses, are included in In-House operating expenses, we use House Revenues (inclusive of House Membership Revenues) in calculating House-Level Contribution and House-Level Contribution Margin to assess the overall profitability of our Houses. Accordingly, our management considers House-Level Contribution and House-Level Contribution Margin to be an important management measure to evaluate the performance of each House, and growth in aggregate House-Level Contribution allows us to leverage our general and administrative costs and improve overall profitability.
OTHER CONTRIBUTION AND MARGIN. Other Contribution is defined as Other revenues plus Non-House Membership Revenues less Other operating expenses, which includes expense items not related to the operation of Houses, such as labor costs, variable overheads and fixed costs, such as rent. It does not reflect the impact of depreciation, amortization, impairment, gain or loss on sale of property, general and administrative expenses, pre-opening expenses, foreign exchange gain/loss, Share-based compensation expense and other applicable items. Other Contribution Margin defined as Other Contribution as a percentage of our Other revenues and is a key determinant of our performance and profitability and our return on the investment in our non-House business. Our management considers Other Contribution and Contribution Margin to be an important management measure.
NET DEBT. Net Debt reflects the total debt, comprising long-term debt, property mortgage loans and related party loans, less cash, cash equivalents and restricted cash. Net Debt is an important measure to monitor leverage and evaluate the balance sheet. A limitation associated with using Net Debt is that it subtracts Cash and cash equivalents and Restricted cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. Management believes that investors may find it useful to monitor leverage and evaluate the balance sheet.
CONSTANT CURRENCY. Some of our financial and operational data that we disclose in this release is presented on a ‘constant currency’ basis to isolate the effect of currency changes during the period. Where we refer to a measure being calculated in ‘constant currency,’ we are calculating the dollar change and the percentage change as if the exchange rate that is being used in the current period was in effect for all prior periods presented. We believe that this calculation provides a more meaningful indication of actual year over year performance and eliminates any fluctuations from currency exchange rates.
While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues or net income (loss), in each case as recognized in accordance with GAAP. In addition, other companies may calculate one or more of these measures differently, which reduces the usefulness of any such measure as a comparative measure.
A reconciliation of Net income (loss) to Adjusted EBITDA for the 13 weeks ending March 30, 2025 and March 31, 2024 is set forth below:
|
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
|
March 30, |
|
|
March 31, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
|
Actuals |
|
|
|
|
||||||||||
|
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||
|
Net income (loss) |
|
$ |
7,513 |
|
|
$ |
(41,858 |
) |
|
n/m |
|
|
n/m |
|
||
|
Depreciation and amortization |
|
|
24,014 |
|
|
|
25,494 |
|
|
|
(6 |
)% |
|
|
(6 |
)% |
|
Interest expense, net |
|
|
21,375 |
|
|
|
21,199 |
|
|
|
1 |
% |
|
|
1 |
% |
|
Income tax expense (benefit) |
|
|
6,742 |
|
|
|
(3,226 |
) |
|
n/m |
|
|
n/m |
|
||
|
EBITDA |
|
|
59,644 |
|
|
|
1,609 |
|
|
n/m |
|
|
n/m |
|
||
|
(Gain) Loss on sale of property and other, net |
|
|
(2 |
) |
|
|
(65 |
) |
|
|
97 |
% |
|
|
97 |
% |
|
Share of income of equity method investments |
|
|
(734 |
) |
|
|
(377 |
) |
|
|
(95 |
)% |
|
|
(94 |
)% |
|
Foreign exchange (gain) loss, net (2) |
|
|
(21,521 |
) |
|
|
5,481 |
|
|
n/m |
|
|
n/m |
|
||
|
Share of equity method investments adjusted EBITDA |
|
|
1,937 |
|
|
|
1,740 |
|
|
|
11 |
% |
|
|
11 |
% |
|
Share-based compensation expense |
|
|
2,360 |
|
|
|
8,039 |
|
|
|
(71 |
)% |
|
|
(71 |
)% |
|
Expenses related to ERP implementation(3) |
|
|
1,416 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
|
Expenses related to the evaluation of certain strategic transactions(4) |
|
|
1,760 |
|
|
|
1,494 |
|
|
|
18 |
% |
|
|
18 |
% |
|
Impairment of long-lived assets(5) |
|
|
2,102 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
|
Expenses related to shareholder activism(6) |
|
|
— |
|
|
|
1,885 |
|
|
n/m |
|
|
n/m |
|
||
|
Adjusted EBITDA |
|
$ |
46,962 |
|
|
$ |
19,806 |
|
|
n/m |
|
|
n/m |
|
||
|
||||||||||||||||
A reconciliation of Operating income (loss) to House-Level Contribution & Other Contribution for the 13 weeks ending March 30, 2025 and March 31, 2024 is set forth below:
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
March 30, |
|
|
March 31, |
|
|
Change % |
|
|
March 31, 2024 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
|
Operating income (loss) |
$ |
34,894 |
|
|
$ |
(24,327 |
) |
|
n/m |
|
|
$ |
(24,568 |
) |
|
n/m |
|
||
|
General and administrative |
|
36,448 |
|
|
|
34,372 |
|
|
|
6 |
% |
|
|
34,432 |
|
|
|
6 |
% |
|
Pre-opening expenses |
|
2,035 |
|
|
|
5,746 |
|
|
|
(65 |
)% |
|
|
5,756 |
|
|
|
(65 |
)% |
|
Depreciation and amortization |
|
24,014 |
|
|
|
25,494 |
|
|
|
(6 |
)% |
|
|
25,538 |
|
|
|
(6 |
)% |
|
Share-based compensation |
|
2,360 |
|
|
|
8,039 |
|
|
|
(71 |
)% |
|
|
8,053 |
|
|
|
(71 |
)% |
|
Foreign exchange (gain) loss, net |
|
(21,521 |
) |
|
|
5,481 |
|
|
n/m |
|
|
|
5,491 |
|
|
n/m |
|
||
|
Loss on impairment of long-lived assets |
|
2,102 |
|
|
|
— |
|
|
n/m |
|
|
|
– |
|
|
n/m |
|
||
|
Business interruption proceeds, net |
|
(22,899 |
) |
|
|
— |
|
|
n/m |
|
|
|
– |
|
|
n/m |
|
||
|
Other, net |
|
3,007 |
|
|
|
3,243 |
|
|
|
(7 |
)% |
|
|
3,249 |
|
|
|
(7 |
)% |
|
Non-House membership revenues |
|
(8,564 |
) |
|
|
(8,277 |
) |
|
|
(3 |
)% |
|
|
(8,291 |
) |
|
|
(3 |
)% |
|
Other revenues |
|
(57,534 |
) |
|
|
(52,725 |
) |
|
|
(9 |
)% |
|
|
(52,788 |
) |
|
|
(9 |
)% |
|
Other operating expenses |
|
57,978 |
|
|
|
52,425 |
|
|
|
11 |
% |
|
|
52,516 |
|
|
|
10 |
% |
|
House-Level Contribution |
$ |
52,320 |
|
|
$ |
49,471 |
|
|
|
6 |
% |
|
$ |
49,388 |
|
|
|
6 |
% |
|
Operating profit (loss) margin |
|
12 |
% |
|
|
(9 |
)% |
|
|
|
|
|
(9 |
)% |
|
|
|
||
|
House-Level contribution margin |
|
24 |
% |
|
|
25 |
% |
|
|
|
|
|
25 |
% |
|
|
|
||
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
March 30, |
|
|
March 31, |
|
|
Change % |
|
|
March 31, 2024 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
|
Operating income (loss) |
$ |
34,894 |
|
|
$ |
(24,327 |
) |
|
n/m |
|
|
$ |
(24,568 |
) |
|
n/m |
|
||
|
General and administrative |
|
36,448 |
|
|
|
34,372 |
|
|
|
6 |
% |
|
|
34,432 |
|
|
|
6 |
% |
|
Pre-opening expenses |
|
2,035 |
|
|
|
5,746 |
|
|
|
(65 |
)% |
|
|
5,756 |
|
|
|
(65 |
)% |
|
Depreciation and amortization |
|
24,014 |
|
|
|
25,494 |
|
|
|
(6 |
)% |
|
|
25,538 |
|
|
|
(6 |
)% |
|
Share-based compensation |
|
2,360 |
|
|
|
8,039 |
|
|
|
(71 |
)% |
|
|
8,053 |
|
|
|
(71 |
)% |
|
Foreign exchange loss, net |
|
(21,521 |
) |
|
|
5,481 |
|
|
n/m |
|
|
|
5,491 |
|
|
n/m |
|
||
|
Loss on impairment of long-lived assets |
|
2,102 |
|
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
|
Business interruption proceeds, net |
|
(22,899 |
) |
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
|
Other, net |
|
3,007 |
|
|
|
3,243 |
|
|
|
(7 |
)% |
|
|
3,249 |
|
|
|
(7 |
)% |
|
House membership revenues |
|
(104,347 |
) |
|
|
(90,672 |
) |
|
|
(15 |
)% |
|
|
(90,748 |
) |
|
|
(15 |
)% |
|
In-House revenues |
|
(112,419 |
) |
|
|
(110,270 |
) |
|
|
(2 |
)% |
|
|
(110,374 |
) |
|
|
(2 |
)% |
|
In-House operating expenses |
|
164,446 |
|
|
|
151,471 |
|
|
|
9 |
% |
|
|
151,734 |
|
|
|
8 |
% |
|
Total Other Contribution |
$ |
8,120 |
|
|
$ |
8,577 |
|
|
|
(5 |
)% |
|
$ |
8,563 |
|
|
|
(5 |
)% |
|
Operating profit (loss) margin |
|
12 |
% |
|
|
(9 |
)% |
|
|
|
|
|
(9 |
)% |
|
|
|
||
|
Other Contribution Margin |
|
12 |
% |
|
|
14 |
% |
|
|
|
|
|
14 |
% |
|
|
|
||
|
|||||||||||||||||||
Condensed Unaudited Consolidated Statements of Operations for the 13 weeks ended March 30, 2025 and March 31, 2024:
|
|
For the 13 Weeks Ended |
|
|||||||
|
(in thousands, except for per share data) |
March 30, 2025 |
|
|
March 31, 2024 |
|
||||
|
Revenues |
|
|
|
|
|
|
|
||
|
Membership revenues |
$ |
|
112,911 |
|
|
$ |
|
98,949 |
|
|
In-House revenues |
|
|
112,419 |
|
|
|
|
110,270 |
|
|
Other revenues |
|
|
57,534 |
|
|
|
|
52,725 |
|
|
Total revenues |
|
|
282,864 |
|
|
|
|
261,944 |
|
|
Operating expenses |
|
|
|
|
|
|
|
||
|
In-House operating expenses |
|
|
(164,446 |
) |
|
|
|
(151,471 |
) |
|
Other operating expenses |
|
|
(57,978 |
) |
|
|
|
(52,425 |
) |
|
General and administrative expenses |
|
|
(36,448 |
) |
|
|
|
(34,372 |
) |
|
Pre-opening expenses |
|
|
(2,035 |
) |
|
|
|
(5,746 |
) |
|
Depreciation and amortization |
|
|
(24,014 |
) |
|
|
|
(25,494 |
) |
|
Share-based compensation |
|
|
(2,360 |
) |
|
|
|
(8,039 |
) |
|
Foreign exchange gain (loss), net |
|
|
21,521 |
|
|
|
|
(5,481 |
) |
|
Loss on impairment of long-lived assets |
|
|
(2,102 |
) |
|
|
|
— |
|
|
Business interruption proceeds, net |
|
|
22,899 |
|
|
|
|
— |
|
|
Other, net |
|
|
(3,007 |
) |
|
|
|
(3,243 |
) |
|
Total operating expenses |
|
|
(247,970 |
) |
|
|
|
(286,271 |
) |
|
Operating income (loss) |
|
|
34,894 |
|
|
|
|
(24,327 |
) |
|
Other (expense) income |
|
|
|
|
|
|
|
||
|
Interest expense, net |
|
|
(21,375 |
) |
|
|
|
(21,199 |
) |
|
Gain (loss) on sale of property and other, net |
|
|
2 |
|
|
|
|
65 |
|
|
Share of income of equity method investments |
|
|
734 |
|
|
|
|
377 |
|
|
Total other expense, net |
|
|
(20,639 |
) |
|
|
|
(20,757 |
) |
|
Income (loss) before income taxes |
|
|
14,255 |
|
|
|
|
(45,084 |
) |
|
Income tax (expense) benefit |
|
|
(6,742 |
) |
|
|
|
3,226 |
|
|
Net income (loss) |
|
|
7,513 |
|
|
|
|
(41,858 |
) |
|
Net loss attributable to non-controlling interests |
|
|
655 |
|
|
|
|
299 |
|
|
Net income (loss) attributable to Soho House & Co Inc. |
$ |
|
8,168 |
|
|
$ |
|
(41,559 |
) |
|
Net income (loss) per share attributable to Class A and Class B common stock |
|
|
|
|
|
|
|
||
|
Basic |
$ |
|
0.04 |
|
|
$ |
|
(0.21 |
) |
|
Diluted |
|
|
0.04 |
|
|
|
|
(0.21 |
) |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
||
|
Basic |
|
|
194,464 |
|
|
|
|
195,711 |
|
|
Diluted |
|
|
196,670 |
|
|
|
|
195,711 |
|
Condensed Unaudited Consolidated Statements of Cash flows for the 13 weeks ended March 30, 2025 and March 31, 2024:
|
|
For the 13 Weeks Ended |
|
|||||
|
(in thousands) |
March 30, 2025 |
|
|
March 31, 2024 |
|
||
|
Cash flows from operating activities |
|
|
|
|
|
||
|
Net income (loss) |
$ |
7,513 |
|
|
$ |
(41,858 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
|
|
||
|
Depreciation and amortization |
|
24,014 |
|
|
|
25,494 |
|
|
Non-cash share-based compensation |
|
2,267 |
|
|
|
7,336 |
|
|
Deferred tax expense (benefit) |
|
(183 |
) |
|
|
(2,948 |
) |
|
(Gain) loss on sale of property and other, net |
|
(2 |
) |
|
|
(65 |
) |
|
Share of (income) loss of equity method investments |
|
(734 |
) |
|
|
(377 |
) |
|
Amortization of debt issuance costs |
|
695 |
|
|
|
703 |
|
|
Loss on impairment of long-lived assets and intangible assets |
|
2,102 |
|
|
|
— |
|
|
PIK interest |
|
10,240 |
|
|
|
9,614 |
|
|
Distributions from equity method investees |
|
129 |
|
|
|
— |
|
|
Foreign exchange (gain) loss, net |
|
(21,521 |
) |
|
|
5,481 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
||
|
Accounts receivable |
|
(1,952 |
) |
|
|
(1,156 |
) |
|
Inventories |
|
747 |
|
|
|
(1,803 |
) |
|
Operating leases, net |
|
(152 |
) |
|
|
2,040 |
|
|
Other operating assets |
|
(9,466 |
) |
|
|
(26,423 |
) |
|
Deferred revenue |
|
(3,468 |
) |
|
|
(6,941 |
) |
|
Accounts payable and accrued and other liabilities |
|
12,591 |
|
|
|
37,092 |
|
|
Net cash provided by operating activities |
|
22,820 |
|
|
|
6,189 |
|
|
Cash flows from investing activities |
|
|
|
|
|
||
|
Purchase of property and equipment |
|
(15,295 |
) |
|
|
(19,706 |
) |
|
Purchase of intangible assets |
|
(4,660 |
) |
|
|
(4,580 |
) |
|
Property and casualty insurance proceeds received |
|
1,650 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
(18,305 |
) |
|
|
(24,286 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
||
|
Repayment of borrowings |
|
(5,994 |
) |
|
|
(312 |
) |
|
Principal payments on finance leases |
|
(101 |
) |
|
|
(67 |
) |
|
Distributions to non-controlling interests |
|
(2,358 |
) |
|
|
— |
|
|
Net cash (used in) provided by financing activities |
|
(8,453 |
) |
|
|
(379 |
) |
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
|
2,274 |
|
|
|
(629 |
) |
|
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
(1,664 |
) |
|
|
(19,105 |
) |
|
Cash, cash equivalents and restricted cash |
|
|
|
|
|
||
|
Beginning of period |
|
156,318 |
|
|
|
161,106 |
|
|
End of period |
$ |
154,654 |
|
|
$ |
142,001 |
|
Condensed Unaudited Consolidated Statements of Cash flows for the 13 weeks ended March 30, 2025 and March 31, 2024 (Continued):
|
|
For the 13 Weeks Ended |
|
|||||
|
(in thousands) |
March 30, 2025 |
|
|
March 31, 2024 |
|
||
|
Cash, cash equivalents and restricted cash are comprised of: |
|
|
|
|
|
||
|
Cash and cash equivalents |
$ |
150,081 |
|
|
$ |
139,765 |
|
|
Restricted cash |
|
4,573 |
|
|
|
2,236 |
|
|
Cash, cash equivalents and restricted cash as of March 30, 2025 and March 31, 2024 |
$ |
154,654 |
|
|
$ |
142,001 |
|
|
Supplemental disclosures: |
|
|
|
|
|
||
|
Cash paid for interest, net of capitalized interest |
$ |
9,184 |
|
|
$ |
10,235 |
|
|
Cash paid for income taxes |
|
55 |
|
|
|
1,360 |
|
|
Supplemental disclosures of non-cash investing and financing activities: |
|
|
|
|
|
||
|
Operating lease assets obtained in exchange for new operating lease liabilities |
|
1,967 |
|
|
|
19,450 |
|
|
Acquisitions of property and equipment under finance leases |
|
– |
|
|
|
198 |
|
|
Prepaid capital expenditures |
|
6,338 |
|
|
|
– |
|
|
Accrued capital expenditures |
|
12,439 |
|
|
|
7,764 |
|
Condensed Consolidated Balance Sheets as of March 30, 2025 (Unaudited) and December 29, 2024:
|
|
As of |
|
|||||
|
(in thousands, except for par value and share data) |
March 30, 2025 |
|
|
December 29, 2024 |
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets |
|
|
|
|
|
||
|
Cash and cash equivalents |
$ |
150,081 |
|
|
$ |
152,716 |
|
|
Restricted cash |
|
4,573 |
|
|
|
3,602 |
|
|
Accounts receivable, net |
|
82,501 |
|
|
|
78,890 |
|
|
Inventories |
|
55,005 |
|
|
|
54,419 |
|
|
Prepaid expenses and other current assets |
|
110,967 |
|
|
|
98,774 |
|
|
Total current assets |
|
403,127 |
|
|
|
388,401 |
|
|
Property and equipment, net |
|
604,388 |
|
|
|
598,270 |
|
|
Operating lease assets |
|
1,144,842 |
|
|
|
1,135,810 |
|
|
Goodwill |
|
200,291 |
|
|
|
195,295 |
|
|
Other intangible assets, net |
|
104,904 |
|
|
|
102,610 |
|
|
Equity method investments |
|
12,622 |
|
|
|
13,217 |
|
|
Deferred tax assets |
|
5,525 |
|
|
|
5,306 |
|
|
Other non-current assets |
|
4,679 |
|
|
|
4,603 |
|
|
Total non-current assets |
|
2,077,251 |
|
|
|
2,055,111 |
|
|
Total assets |
$ |
2,480,378 |
|
|
$ |
2,443,512 |
|
|
Liabilities and Shareholders’ Deficit |
|
|
|
|
|
||
|
Current liabilities |
|
|
|
|
|
||
|
Accounts payable |
$ |
81,557 |
|
|
$ |
75,987 |
|
|
Accrued liabilities |
|
102,219 |
|
|
|
98,482 |
|
|
Current portion of deferred revenue |
|
134,929 |
|
|
|
134,360 |
|
|
Indirect and employee taxes payable |
|
30,937 |
|
|
|
33,889 |
|
|
Current portion of debt, net of debt issuance costs |
|
29,657 |
|
|
|
34,618 |
|
|
Current portion of operating lease liabilities – sites trading less than one year |
|
1,308 |
|
|
|
371 |
|
|
Current portion of operating lease liabilities – sites trading more than one year |
|
58,988 |
|
|
|
57,078 |
|
|
Other current liabilities |
|
45,873 |
|
|
|
39,377 |
|
|
Total current liabilities |
|
485,468 |
|
|
|
474,162 |
|
|
Debt, net of current portion and debt issuance costs |
|
675,421 |
|
|
|
656,868 |
|
|
Property mortgage loans, net of debt issuance costs |
|
137,686 |
|
|
|
137,385 |
|
|
Operating lease liabilities, net of current portion – sites trading less than one year |
|
64,225 |
|
|
|
90,081 |
|
|
Operating lease liabilities, net of current portion – sites trading more than one year |
|
1,244,283 |
|
|
|
1,210,637 |
|
|
Finance lease liabilities |
|
79,435 |
|
|
|
77,255 |
|
|
Financing obligation |
|
76,964 |
|
|
|
76,900 |
|
|
Deferred revenue, net of current portion |
|
26,506 |
|
|
|
23,697 |
|
|
Deferred tax liabilities |
|
2,229 |
|
|
|
2,286 |
|
|
Other non-current liabilities |
|
25,448 |
|
|
|
23,699 |
|
|
Total non-current liabilities |
|
2,332,197 |
|
|
|
2,298,808 |
|
|
Total liabilities |
|
2,817,665 |
|
|
|
2,772,970 |
|
Contacts
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