LOVESAC CO Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q) | MarketScreener

2022-09-10 02:02:51 By : Ms. Sophie HU

Impact of COVID-19 and Macro-Economic Factors

(1)For the calculation of basic and diluted net income per share, see Note 5 and Note 8 to our condensed financial statements.

Reconciliation of Non-GAAP Financial Measures

The following provides a reconciliation of Net income to EBITDA and Adjusted EBITDA for the periods presented:

weeks Twenty-six weeks Twenty-six weeks

(b)Other non-recurring expenses in the twenty-six weeks ended July 31, 2022 represents costs related to a legal settlement. There were no other non-recurring expenses in the thirteen weeks ended August 1, 2021.

(c)Represents the impairment of the right of use lease asset for one showroom.

How We Assess the Performance of Our Business

We consider a variety of financial and operating measures, including the following, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Retail Sales Per Selling Square Foot

Selling, General and Administrative Expenses

Basis of Presentation and Results of Operations

The following table sets forth, for the periods presented, our condensed statement of operations data as a percentage of total revenues:

Thirteen weeks ended July 31, 2022 Compared to the thirteen weeks ended August 1, 2021

Selling, general and administrative expenses

Depreciation and amortization expenses increased $1.5 million, or 92.0%, to $3.1 million in the thirteen weeks ended July 31, 2022 as compared to $1.6 million in the thirteen weeks ended August 1, 2021. The increase in depreciation and amortization expense principally relates to capital investments for new and remodeled showrooms.

Twenty-six weeks ended July 31, 2022 Compared to the twenty-six weeks ended August 1, 2021

Selling, general and administrative expenses

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