Restoration Hardware Holdings, Inc. Reports Record First Quarter Fiscal 2013 Financial Results
Q1 Net Revenues Increased 38%; Q1 Comparable Store Sales Increased
41%; Q1 Adjusted Diluted EPS of
Company Provides Q2 Guidance of Revenue Growth Between 28% and
30%, Adjusted Diluted EPS of
Company Increases Fiscal 2013 Guidance to Revenue Growth Between
23% and 27% from
First Quarter Highlights
-
Net revenues increased 38% on top of an 18% increase for the same
period last year
- Comparable store sales increased 41% on top of 26% growth for the same period last year
- Direct revenues increased 38% on top of a 20% increase for the same period last year
-
Adjusted operating income increased to
$4.6 million from an operating loss of$0.6 million for the same period last year; GAAP operating income of$0.5 million from an operating loss of$2.1 million for the same period last year -
Adjusted net income increased to
$2.3 million from a net loss of$1.3 million for the same period last year; GAAP net loss of$0.2 million from a net loss of$3.7 million for the same period last year -
Adjusted diluted earnings per share reached
$0.06 ; GAAP diluted earnings per share of$0.00
Mr. Alberini commented, “We are receiving overwhelming support and
interest from the landlord community, with offers for leases with more
favorable terms that are typically available only to anchor tenants in
several of the most prestigious shopping centers in
Mr. Friedman continued, "Also announced today, is our intent to launch
two new businesses,
First Quarter Fiscal 2013 Financial Results
Revenue - Net revenues for the first quarter of fiscal 2013
increased 38% to
- Comparable store sales increased 41% for the first quarter of fiscal 2013. This growth compares to an increase of 26% in comparable store sales for the first quarter of fiscal 2012.
-
As of
May 4, 2013 , the Company operated a total of 70 retail stores, consisting of 62 Galleries, 5 Full Line Design Galleries and 3 Baby & Child Galleries, as well as 14 outlet stores throughoutthe United States andCanada . This compares to a total of 74 retail stores, consisting of 70 Galleries, 2 Full Line Design Galleries and 2 Baby & Child Galleries, as well as 10 outlet stores open at the end of the first quarter of fiscal 2012. -
Direct revenues increased 38% to
$142.0 million for the first quarter of fiscal 2013. This growth is on top of the 20% increase in direct revenues for the first quarter of fiscal 2012.
Operating Income (Loss)* - Adjusted operating income for the
first quarter of fiscal 2013 increased to
EBITDA* - Adjusted EBITDA for the first quarter of fiscal 2013
increased 82% to
Net Income (Loss)* - Adjusted net income increased to
Earnings Per Share* - Adjusted diluted EPS increased to
Outlook
The Company is providing the following guidance for the second quarter of fiscal 2013:
-
Net revenues in the range of
$375 million to $380 million -
Adjusted net income in the range of
$15.7 million to $16.5 million -
Adjusted diluted EPS in the range of
$0.40 to $0.42
The Company is increasing its guidance for the fiscal year ending
-
Net revenues in the range of
$1.47 billion to $1.51 billion -
Adjusted net income in the range of
$55.8 million to $58.2 million -
Adjusted diluted EPS in the range of
$1.41 to $1.47
The Company’s adjusted net income and adjusted diluted earnings per
share guidance does not include (i) non-cash stock-based compensation
charges, which for the second quarter are estimated to be
Conference Call and Webcast Information
About
RH (
*Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses the following non-GAAP financial measures: adjusted operating income, EBITDA, adjusted EBITDA, adjusted net income, pro forma EPS and adjusted diluted EPS (collectively the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures used by the Company in this press release may be different from the methods used by other companies.
For more information on the non-GAAP financial measures, please see the
Reconciliation of GAAP to non-GAAP Financial Measures tables in this
press release. These accompanying tables have more details on the GAAP
financial measures that are most directly comparable to non-GAAP
financial measures and the related reconciliations between these
financial measures. With respect to the Company’s adjusted net income
and adjusted diluted
Forward-Looking Statements
This release contains forward-looking statements within the meaning of
the federal securities laws including statements related to the expected
benefits to our sales, earnings, capital investment amounts and ROIC of
anticipated new tenant deals with landlords, potential new markets for
our stores, the anticipated timing of the launch of RH Leather and RH
Rugs, the anticipating timing of the inaugural exhibition for RH
Contemporary Art and the launch of our new online Contemporary Art
platform, our intention to launch two new businesses,
FINANCIAL STATEMENTS
AND RELATED INFORMATION
TABLE OF CONTENTS
Page 6. Condensed Consolidated Statements of Operations
Page 7. Condensed Consolidated Balance Sheets
Page 8. Condensed Consolidated Statements of Cash Flows
Page 9. Operating Metrics and Other Data
Page 10. Reconciliation of Adjusted Income Statement Items
Page 11. Reconciliation of Net Loss to Operating Income (Loss) and Adjusted Operating Income (Loss)
Page 12. Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Page 13. Reconciliation of GAAP Net Loss to Adjusted Net Income (Loss)
Page 14. Reconciliation of Net Loss Per Share to Adjusted Net Income (Loss) Per Share
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
May 4, |
% of Net |
April 28, |
% of Net |
|||||||||||
Net revenues | $ | 301,337 | 100.0 | % | $ | 217,914 | 100.0 | % | ||||||
Cost of goods sold | 199,460 | 66.2 | % | 142,646 | 65.5 | % | ||||||||
Gross profit | 101,877 | 33.8 | % | 75,268 | 34.5 | % | ||||||||
Selling, general and administrative expenses | 101,366 | 33.6 | % | 77,365 | 35.5 | % | ||||||||
Income (loss) from operations | 511 | 0.2 | % | (2,097 | ) | -1.0 | % | |||||||
Interest expense | (840 | ) | -0.3 | % | (1,575 | ) | -0.7 | % | ||||||
Loss before income taxes | (329 | ) | -0.1 | % | (3,672 | ) | -1.7 | % | ||||||
Income tax expense (benefit) | (168 | ) | -0.1 | % | 56 | — | % | |||||||
Net loss | $ | (161 | ) | — | % | $ | (3,728 | ) | -1.7 | % | ||||
Weighted-average shares used in computing basic and diluted net loss per share | 38,076,026 | 1,000 | ||||||||||||
Basic and diluted net loss per share | $ | — | $ | (3,728 | ) | |||||||||
Pro forma weighted-average shares used in computing pro forma basic and diluted net loss per share [a] | 36,971,500 | |||||||||||||
Pro forma basic and diluted net loss per share | $ | (0.10 | ) |
[a] On a pro forma basis, basic and diluted shares outstanding for the
three months ended
RESTORATION HARDWARE HOLDINGS, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
May 4, |
February 2, |
April 28, |
|||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 9,669 | $ | 8,354 | $ | 10,205 | |||
Merchandise inventories | 365,716 | 353,329 | 269,995 | ||||||
Other current assets | 176,053 | 131,075 | 87,577 | ||||||
Total current assets | 551,438 | 492,758 | 367,777 | ||||||
Property and equipment—net | 123,091 | 111,406 | 85,927 | ||||||
Goodwill and other intangibles | 172,125 | 172,724 | 174,506 | ||||||
Other assets | 12,968 | 12,725 | 4,849 | ||||||
Total assets | $ | 859,622 | $ | 789,613 | $ | 633,059 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Accounts payable and accrued expenses | $ | 179,420 | $ | 145,353 | $ | 128,447 | |||
Other current liabilities | 75,761 | 74,071 | 61,360 | ||||||
Total current liabilities | 255,181 | 219,424 | 189,807 | ||||||
Revolving line of credit and term loan | 113,994 | 82,501 | 140,263 | ||||||
Other long term liabilities | 35,397 | 36,077 | 55,825 | ||||||
Total liabilities | 404,572 | 338,002 | 385,895 | ||||||
Stockholders’ equity | 455,050 | 451,611 | 247,164 | ||||||
Total liabilities and stockholders’ equity | $ | 859,622 | $ | 789,613 | $ | 633,059 | |||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
May 4, |
April 28, |
|||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net loss | $ | (161 | ) | $ | (3,728 | ) | ||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 6,630 | 6,424 | ||||||||||
Stock-based compensation expense | 3,631 | 387 | ||||||||||
Other non-cash items | 168 | 147 | ||||||||||
Change in assets and liabilities: | ||||||||||||
Merchandise inventories | (12,437 | ) | (24,039 | ) | ||||||||
Accounts payable, accrued expenses, and other | (17,454 | ) | 11,842 | |||||||||
Net cash used in operating activities | (19,623 | ) | (8,967 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Capital expenditures | (9,737 | ) | (6,193 | ) | ||||||||
Net cash used in investing activities | (9,737 | ) | (6,193 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Net borrowings under line of credit | 31,493 | 17,963 | ||||||||||
Payments on capital leases | (840 | ) | (1,110 | ) | ||||||||
Net cash provided by financing activities | 30,653 | 16,853 | ||||||||||
Effects of foreign currency exchange rate translation | 22 | - | ||||||||||
Net increase in cash and cash equivalents | 1,315 | 1,693 | ||||||||||
Cash and cash equivalents | ||||||||||||
Beginning of period | 8,354 | 8,512 | ||||||||||
End of period | $ | 9,669 | $ | 10,205 | ||||||||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||
OPERATING METRICS AND OTHER DATA | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
May 4, |
April 28, |
|||||||
Growth in net revenues: | ||||||||
Stores [a] | 39 | % | 16 | % | ||||
Direct | 38 | % | 20 | % | ||||
Total | 38 | % | 18 | % | ||||
Retail [b]: | ||||||||
Comparable store sales change [c] | 41 | % | 26 | % | ||||
Retail stores open at beginning of period | 71 | 74 | ||||||
Stores opened | 2 | 3 | ||||||
Stores closed | 3 | 3 | ||||||
Retail stores open at end of period | 70 | 74 | ||||||
Retail sales per leased selling square foot [d] | $ | 284 | $ | 200 | ||||
Total leased square footage at end of period (in thousands) | 796 | 802 | ||||||
Total leased selling square footage at end of period (in thousands) [e] | 521 | 522 | ||||||
Direct: | ||||||||
Catalogs circulated (in thousands) [f] | — | 14,906 | ||||||
Catalog pages circulated (in millions) [f] | — | 7,363 | ||||||
Direct as a percentage of net revenues [g] | 47 | % | 47 | % |
[a] Store data represents retail stores plus outlet stores. Net revenues
for outlet stores for the three months ended
[b] Retail data have been calculated based upon retail stores, which includes our Baby & Child stores, and excludes outlet stores.
[c] Comparable store sales have been calculated based upon retail stores that were open at least fourteen full months as of the end of the reporting period and did not change square footage by more than 20% between periods. If a store is closed for seven days during a month, that month will be excluded from comparable store sales. Comparable store net revenues exclude revenues from outlet stores.
[d] Retail sales per leased selling square foot is calculated by dividing total net revenues for all retail stores, comparable and non-comparable, by the average leased selling square footage for the period.
[e] Leased selling square footage is retail space at our stores used to sell our products. Leased selling square footage excludes backrooms at retail stores used for storage office space or similar matters. Leased selling square footage excludes exterior sales space located outside a store, such as courtyards, gardens and rooftops. Leased selling square footage includes approximately 4,500 square feet related to one owned store location.
[f] The catalogs and catalog pages circulated from period to period do not take into account different page sizes per catalog distributed. Page sizes and page counts vary for different catalog mailings and we sometimes mail different versions of a catalog at the same time. Accordingly, period to period comparisons of catalogs circulated and catalog pages circulated do not take these variations into account.
[g] Direct revenues include sales through our catalogs and websites.
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED INCOME STATEMENT ITEMS | ||||||||||||||||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||
Reported
May 4, 2013 |
Adjustments |
Adjusted
May 4, 2013 |
% of Net Revenues |
Reported
April 28, 2012 |
Adjustments |
Adjusted
April 28, 2012 |
% of Net Revenues | |||||||||||||||||||||||
Net revenues | $ | 301,337 | $ | — | $ | 301,337 | 100.0 | % | $ | 217,914 | $ | — | $ | 217,914 | 100.0 | % | ||||||||||||||
Cost of goods sold | 199,460 | — | 199,460 | 66.2 | % | 142,646 | — | 142,646 | 65.5 | % | ||||||||||||||||||||
Gross profit | 101,877 | — | 101,877 | 33.8 | % | 75,268 | — | 75,268 | 34.5 | % | ||||||||||||||||||||
Selling, general and administrative expenses [a] | 101,366 | (4,090 | ) | 97,276 | 32.3 | % | 77,365 | (1,464 | ) | 75,901 | 34.8 | % | ||||||||||||||||||
Income (loss) from operations | 511 | 4,090 | 4,601 | 1.5 | % | (2,097 | ) | 1,464 | (633 | ) | -0.3 | % | ||||||||||||||||||
Interest expense | (840 | ) | — | (840 | ) | -0.3 | % | (1,575 | ) | — | (1,575 | ) | -0.7 | % | ||||||||||||||||
Income (loss) before income taxes | (329 | ) | 4,090 | 3,761 | 1.2 | % | (3,672 | ) | 1,464 | (2,208 | ) | -1.0 | % | |||||||||||||||||
Income tax expense (benefit) [b] | (168 | ) | 1,672 | 1,504 | 0.5 | % | 56 | (939 | ) | (883 | ) | -0.4 | % | |||||||||||||||||
Net income (loss) [c] | $ | (161 | ) | $ | 2,418 | $ | 2,257 | 0.7 | % | $ | (3,728 | ) | $ | 2,403 | $ | (1,325 | ) | -0.6 | % | |||||||||||
EBITDA [d] | $ | 7,141 | $ | 11,231 | $ | 4,327 | $ | 6,159 | ||||||||||||||||||||||
Weighted-average shares used in computing basic net income (loss) per share [e] | 38,076,026 | 38,076,026 | 1,000 | 36,971,500 | ||||||||||||||||||||||||||
Weighted-average shares used in computing diluted net income (loss) per share [e] | 38,076,026 | 38,671,785 | 1,000 | 36,971,500 | ||||||||||||||||||||||||||
Basic net income (loss) per share | $ | — | $ | 0.06 | $ | (3,728 | ) | $ | (0.04 | ) | ||||||||||||||||||||
Diluted net income (loss) per share | $ | — | $ | 0.06 | $ | (3,728 | ) | $ | (0.04 | ) |
[a] The adjustments for selling, general, and administrative expenses include management and pre-initial public offering board fees, non-cash and other one-time compensation, secondary offering costs and lease termination costs. See table titled “Reconciliation of GAAP Net Loss to Adjusted Net Income (Loss)” for additional details.
[b] Assumes a normalized tax rate of 40% for all periods presented. See table titled “Reconciliation of GAAP Net Loss to Adjusted Net Income (Loss)” for additional details.
[c] Adjusted net income (loss) is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define adjusted net income (loss) as consolidated net loss less non-recurring and other items. Adjusted net income (loss) is included in this press release because management believes that adjusted net income (loss) provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter.
[d] EBITDA and Adjusted EBITDA are supplemental measures of financial
performance that are not required by, or presented in accordance with,
GAAP. We define EBITDA as consolidated net income (loss) before
depreciation and amortization, interest expense and provision for income
taxes. Adjusted EBITDA reflects further adjustments to EBITDA to
eliminate the impact of certain items including non-cash or other items
that we do not consider representative of our ongoing financial
performance. EBITDA and Adjusted EBITDA are included in this press
release because they are key metrics used by management, our
[e] On an adjusted basis for the three months ended
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||
RECONCILIATION OF NET LOSS TO OPERATING INCOME (LOSS) | ||||||||
AND ADJUSTED OPERATING INCOME (LOSS) | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
May 4, |
April 28, |
|||||||
Net loss | $ | (161 | ) | $ | (3,728 | ) | ||
Interest expense | 840 | 1,575 | ||||||
Income tax expense (benefit) | (168 | ) | 56 | |||||
Operating income (loss) | 511 | (2,097 | ) | |||||
Management and pre-IPO board fees [a] | — | 889 | ||||||
Non-cash compensation [b] | 3,323 | — | ||||||
Secondary offering fees [c] | 767 | — | ||||||
Lease termination costs [d] | — | 575 | ||||||
Adjusted operating income (loss) | $ | 4,601 | $ | (633 | ) |
[a] Includes fees and expenses paid in accordance with our management
services agreement with
[b] Includes a non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman.
[c] Represents legal and other professional fees incurred in connection with our secondary offering.
[d] Includes lease termination costs for retail stores that were closed prior to their respective lease termination dates.
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
May 4, |
April 28, |
|||||||
Net loss | $ | (161 | ) | $ | (3,728 | ) | ||
Depreciation and amortization | 6,630 | 6,424 | ||||||
Interest expense | 840 | 1,575 | ||||||
Income tax expense (benefit) | (168 | ) | 56 | |||||
EBITDA [a] | 7,141 | 4,327 | ||||||
Management and pre-IPO board fees [b] | — | 889 | ||||||
Non-cash compensation [c] | 3,323 | 387 | ||||||
Secondary offering fees [d] | 767 | — | ||||||
Lease termination costs [e] | — | 575 | ||||||
Other [f] | — | (19 | ) | |||||
Adjusted EBITDA [a] | $ | 11,231 | $ | 6,159 |
[a] EBITDA and Adjusted EBITDA are supplemental measures of financial
performance that are not required by, or presented in accordance with,
GAAP. We define EBITDA as consolidated net income (loss) before
depreciation and amortization, interest expense and provision for income
taxes. Adjusted EBITDA reflects further adjustments to EBITDA to
eliminate the impact of certain items including non-cash or other items
that we do not consider representative of our ongoing financial
performance. EBITDA and Adjusted EBITDA are included in this press
release because they are key metrics used by management, our
[b] Includes fees and expenses paid in accordance with our management
services agreement with
[c] The three months ended
[d] Represents legal and other professional fees incurred in connection with our secondary offering.
[e] Includes lease termination costs for retail stores that were closed prior to their respective lease termination dates.
[f] Represents certain other items which management believes are not
indicative of our ongoing operating performance, which includes foreign
exchange gains and losses for the three months ended
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED NET INCOME (LOSS) | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
May 4, |
April 28, |
|||||||
GAAP net loss | $ | (161 | ) | $ | (3,728 | ) | ||
Adjustments (pre-tax): | ||||||||
Management and pre-IPO board fees [a] | $ | — | $ | 889 | ||||
Non-cash compensation [b] | 3,323 | — | ||||||
Secondary offering fees [c] | 767 | — | ||||||
Lease termination costs [d] | — | 575 | ||||||
Subtotal adjusted items | 4,090 | 1,464 | ||||||
Impact of income tax items [e] | (1,672 | ) | 939 | |||||
Adjusted net income (loss) [f] | $ | 2,257 | $ | (1,325 | ) |
[a] Represents fees paid in accordance with our management services
agreement with
[b] Includes a non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman.
[c] Represents legal and other professional fees incurred in connection with our secondary offering.
[d] Includes lease termination costs for retail stores that were closed prior to their respective lease termination dates.
[e] Assumes a normalized tax rate of 40% for all periods presented.
[f] Adjusted net income (loss) is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define adjusted net income (loss) as consolidated net loss less non-recurring and other items. Adjusted net income (loss) is included in this press release because management believes that adjusted net income (loss) provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter.
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||
RECONCILIATION OF NET LOSS PER SHARE TO | ||||||||
ADJUSTED NET INCOME (LOSS) PER SHARE | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
May 4, |
April 28, |
|||||||
Diluted net loss per share [a] | $ | — | $ | (0.10 | ) | |||
EPS impact of adjustments (pre-tax): | ||||||||
Management and pre-IPO board fees [b] | $ | — | $ | 0.02 | ||||
Non-cash compensation [c] | 0.09 | — | ||||||
Secondary offering fees [d] | 0.02 | — | ||||||
Lease termination costs [e] | — | 0.02 | ||||||
Subtotal adjusted items | 0.11 | 0.04 | ||||||
Impact of income tax items [f] | (0.05 | ) | 0.02 | |||||
Adjusted diluted net income (loss) per share [g] | 0.06 | $ | (0.04 | ) |
[a] Pro forma diluted net loss per share for the three months ended
[b] Represents fees paid in accordance with our management services
agreement with
[c] Includes a non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman.
[d] Represents legal and other professional fees incurred in connection with our secondary offering.
[e] Includes lease termination costs for retail stores that were closed prior to their respective lease termination dates.
[f] Assumes a normalized tax rate of 40% for all periods presented.
[g] Adjusted diluted net income (loss) per share is a supplemental measure of financial performance that is not required by, or presented in accordance with GAAP. We define adjusted net income (loss) per share as consolidated net loss less non-recurring and other items divided by the Company’s post-initial public offering share count. Adjusted net income (loss) per share is included in this press release because management believes that adjusted net income (loss) per share provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter.
Source:
Restoration Hardware Holdings, Inc.
Cammeron McLaughlin,
415-945-4998
VP, Investor Relations
cmclaughlin@restorationhardware.com