Tile Shop Holdings, Inc. (TTS) has reported 92.79 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.27 million, or $0.01 a share in the quarter, compared with $3.79 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.80 million, or $0.07 a share compared with $3.98 million or $0.08 a share, a year ago. Revenue during the quarter grew 6.54 percent to $76.61 million from $71.91 million in the previous year period. Gross margin for the quarter contracted 80 basis points over the previous year period to 69.61 percent. Total expenses were 97.85 percent of quarterly revenues, up from 90.37 percent for the same period last year. That has resulted in a contraction of 748 basis points in operating margin to 2.15 percent.
Operating income for the quarter was $1.65 million, compared with $6.93 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.51 million compared with $14.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 88 basis points in the quarter to 18.94 percent from 19.81 percent in the last year period.
"2016 was an outstanding year of growth and achievement across all of our key initiatives,” said Chris Homeister, chief executive officer. "The fourth quarter was at the low end of our expectations, driven by both lower revenue and abnormally high costs associated with employee benefits. We are extremely pleased with delivering a year with approximately 8% comparable store sales growth, increased gross margin and 41% growth in earnings per share. We are eager to build upon our continued success from 2016 as we work to deliver another year of significant growth in sales, operating margins and earnings per share in 2017."
Tile Shop Holdings, Inc. projects revenue to be in the range of $350 million to $370 million for financial year 2017. For fiscal year 2017, Tile Shop Holdings, Inc. expects net income to be in the range of $25 million to $29 million. For the fiscal year 2017, Tile Shop Holdings, Inc. forecasts adjusted net income to be in the range of $26 million to $29 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.49 to $0.56. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.50 to $0.57 on adjusted basis.
Debt comes down significantly
Tile Shop Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $29.11 million as on Dec. 31, 2016, down 48.68 percent or $27.61 million from $56.72 million on Dec. 31, 2015. Total debt was 10.97 percent of total assets as on Dec. 31, 2016, compared with 23.11 percent on Dec. 31, 2015. Debt to equity ratio was at 0.21 as on Dec. 31, 2016, down from 0.49 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.95 for the quarter from 14.34 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
