Q2 2021 Total and E-Commerce Revenue Up 181%
and 214%, Respectively
MONTREAL, Aug. 12, 2021 /CNW/ - LXRandCo, Inc. ("LXR" or
the "Company") (TSX: LXR) (TSX: LXR.WT), a North American socially
responsible, digital-first omni-channel retailer of authenticated
pre-owned luxury handbags and personal accessories, today reported
its financial results for the second quarter ended June 30, 2021 ("Q2 2021").
"Q2, which is usually our slowest quarter in the year, was
productive as we made excellent progress on our digital-first
strategy. Marking the bottom in our revenue decline momentum, we
posted growth in total net revenue of 181%, in e-commerce net
revenue of 214%, and at retail of 140% revenue versus Q2 last year.
Through this growth rebound, our average order value grew 2% to
$890 and we maintained steady gross
margins of 33%. In addition, in keeping with our digital-first
plan, we accelerated e-commerce investment by making key digital
people hires, and we increased digital marketing spend to build
greater brand awareness and increased market share, particularly in
Canada, where we grew the business
four-fold. In preparation for a more active second half of the
year, we have steadily increased our working capital investment in
product inventory at competitive gross margins." said Cam di Prata, the Company's CEO.
"We remain optimistic about the second half of the year. Given
our current momentum, we have modified our revenue outlook for the
full year from between $16 million
and $20 million to between
$17.5 million and $20.0 million. Estimated e-commerce net
revenue as a proportion of total net revenue remains at 50% to
65%. If we can attain the upper end of the revised revenue
estimates, it is our expectation that the second half of the year
will experience slightly negative to break-even Adjusted EBITDA."
added Cam di Prata.
Provided below are the financial highlights and a
discussion of the Company's financial results for the three–months,
which are to be read in conjunction with the Company's unaudited
interim condensed consolidated financial statements and
Management's Discussion and Analysis ("MD&A") for the
period.
Overview of Results for Q2 2021, compared to Q2
2020
Selected financial highlights include the following:
- Total net revenue increased 181% to $4.0
million. Adjusted net revenue growth, excluding the 2020
revenue from U.S. Partner Bankruptcies, increased 349%.
- E-commerce net revenue increased 214% to $2.5 million, and e-commerce average order value
increased 2% to $889 per transaction.
Adjusted e-commerce net revenue growth, excluding U.S. Partner
Bankruptcies, increased 260%.
- E-commerce penetration increased to 63% from 56%.
- Retail net revenue, which includes revenue from retail stores
and wholesale operations, was $1.5
million, an increase of 140%. At quarter-end, we had a
network of ten stores (eight of which were in operation), a
reduction of 49 stores versus Q2 2020.
- Gross profit margin was 32.8% compared to 33.6%.
- Owing primarily to increased e-commerce investment in people
and digital marketing spend, selling, general and administrative
("SG&A") expenses increased 82% to $2.5
million, representing 61% of net revenue versus 95% of net
revenue.
- Adjusted Net loss (a non-IFRS measure) was $1.1 million versus a loss of $0.9 million.
- Adjusted EBITDA (a non-IFRS measure) was a loss of $0.8 million versus a loss of $0.6 million.
- Free Cash Flow (a non-IFRS measure) was negative $1.2 million as compared to negative $0.7 million, reflecting primarily increased
working capital investment in product inventory.
- Cash availability at the end of Q2 2021 was $4.5 million as compared to $2.6 million in Q2 2020.
Discussion of the Three-Month Periods Ended June 30, 2021 and 2020
Unless otherwise indicated, all amounts are expressed in
Canadian dollars. Certain metrics, including those expressed on an
adjusted basis, are non-IFRS measures. See "Non-IFRS Measures"
further below. For a reconciliation of non-IFRS measures to their
most directly comparable measure calculated in accordance with
IFRS, see "Select Consolidated Financial Information" further
below.
Net Revenue
For Q2 2021, total net revenue increased by 181.5% to
$4.0 million from $1.4 million in Q2 2020. During this period,
approximately 62.7% of our total net revenue was generated from
e-commerce and 37.3% from retail activities (stores and wholesale
channels combined), as compared to 56.1% and 43.9%, respectively,
in the same period in 2020. During Q2 2021, approximately 67.3% of
our net revenue was generated in the U.S., with the balance coming
from Canada, as compared to 76.5%
from the U.S. in Q2 2020. This shift in revenue mix was due to the
geographic impact of the U.S. Partner Bankruptcies, which reduced
our U.S. business substantially in Q2 2021, and to the
increased share in e-commerce revenue as compared
to Q2 2020.
Included in total net revenue for Q2 2020 is non-recurring
net revenue from retail partners affected by the U.S. Partner
Bankruptcies of $0.5 million.
Excluding the impact of U.S. Partner Bankruptcies, total net
revenue in Q2 2021 increased by 349.2% versus the same period
in 2020.
E-commerce
E-commerce penetration increased to 62.7% from 56.1% in
Q2 2020. During this period, e-commerce net revenue was
$2.5 million, an increase of 214.3%
compared to prior period.
Included in e-commerce net revenue for Q2 2020 is non-recurring
net revenue from retail partners affected by the U.S. Partner
Bankruptcies of $0.1 million.
Excluding the impact of the U.S. Partner Bankruptcies, e-commerce
net revenue in Q2 2021 increased by 259.6% versus the same
period in 2020.
E-commerce AOV in Q2 2021 was $889, an increase of 2.2% versus the comparable
period last year.
Retail
For Q2 2021, retail net revenue (which includes net revenue from
stores and wholesale channels) increased 139.5% to $1.5 million as compared to $0.6 million in Q2 2020. The increase
highlights the progressive recovery from the adverse impact of
COVID-19 on our and our channel partner's retail activities, as
well as permanent store closures relating to the U.S. Partner
Bankruptcies. Despite the growth, we recognize the continued
adverse economic impact of COVID-19 as an ongoing risk in 2021. As
at June 30, 2021, our retail store
network consisted of ten stores, of which only eight were open as
compared to 59 stores as at June 30,
2020, 39 of them being operational. During Q2 2021, we did
not open or close any stores (Q2 2020 – 12 closures).
Discontinued Net Revenue from U.S. Partner
Bankruptcies
In Q2 2021, we generated no revenue from partners affected
by the U.S. Partner Bankruptcies (2020—$0.5 million total net
revenue and $0.1 million e-commerce
net revenue, respectively). As these partners have permanently
ceased their operations, we are actively working to replace this
lost revenue through a combination of increased e-commerce activity
and the addition of other retail channel partners.
To facilitate greater comparability, the financial table
"Revenue by Channel (Excluding Impact of the U.S. Partner
Bankruptcies)" provided below sets forth the net revenue by channel
excluding the impact of U.S. Partner Bankruptcies.
Revenue by Channel (Excluding Impact of U.S. Partner
Bankruptcies1)
|
|
|
For the
three-months ended June 30,
|
($)
|
2021
|
2020
|
Increase/
(Decrease)
|
Total net
revenue
|
4,026,028
|
1,430,284
|
181.5%
|
Less: Revenue from
U.S. Bankrupt Partners
|
-
|
533,942
|
n/a
|
Adjusted Total net
revenue
|
4,026,028
|
896,342
|
349.2%
|
|
|
|
|
|
|
|
|
E-commerce net
revenue
|
2,522,682
|
802,658
|
214.3%
|
Less: Revenue from
U.S. Bankrupt Partners
|
-
|
101,191
|
n/a
|
Adjusted e-commerce
net revenue
|
2,522,682
|
701,467
|
259.6%
|
|
|
|
|
Total and E-commerce LTM Net Revenue
As we emerge from the effects of the pandemic, we monitor our
LTM net revenue, which adjusts for the effects of seasonality and
provides a trailing full-year assessment of revenue momentum and
growth. The following table provides an overview of historical
total and e-commerce net revenue on a quarterly and LTM basis. As
highlighted below, our full-year net revenue target is between
$17.5 million and $20 million, with over 50% of total net revenue
to come from our digital channels.
______________________
1
|
Revenue from U.S.
Partner Bankruptcies means net revenue pertaining to Stage Stores,
Lord & Taylor, Stein Mart Stores and Century 21, all no longer
in operation.
|
|
Total net
revenue
|
E-commerce net
revenue
|
|
E-commerce
penetration
|
Actuals
($):
|
Quarterly
|
LTM
|
Quarterly
|
LTM
|
|
LTM
|
Q1 2019
|
8,756,063
|
38,982,959
|
604,023
|
2,294,094
|
|
6%
|
Q2 2019
|
8,558,435
|
38,254,627
|
959,525
|
2,654,334
|
|
7%
|
Q3 2019
|
8,314,615
|
36,493,740
|
985,288
|
3,057,856
|
|
8%
|
Q4 2019
|
14,440,173
|
40,069,286
|
1,175,652
|
3,724,488
|
|
9%
|
Q1 2020
|
6,097,604
|
37,410,827
|
975,592
|
4,096,057
|
|
11%
|
Q2 2020
|
1,430,284
|
30,282,676
|
802,658
|
3,939,190
|
|
13%
|
Q3 2020
|
2,857,718
|
24,825,779
|
885,669
|
3,839,571
|
|
15%
|
Q4 2020
|
3,391,813
|
13,777,419
|
1,715,804
|
4,379,723
|
|
32%
|
Q1 2021
|
2,602,071
|
10,281,886
|
1,572,640
|
4,976,771
|
|
48%
|
Q2 2021
|
4,026,028
|
12,877,630
|
2,522,682
|
6,696,795
|
|
52%
|
|
|
|
|
|
|
|
Q4
2021Target
|
|
17,500,000
—
|
|
|
|
50% —
65%
|
|
|
20,000,000
|
|
|
|
|
Gross Profit and Gross Margin
Gross profit in Q2 2021 increased by 174.4% to $1.3 million as compared to $0.5 million in Q2 2020. The increase in gross
profit is attributable to the increase in total net revenue
discussed above, offset by a charge of approximately $20,000 due to a break-in and theft in one of our
store locations.
Gross profit margin in Q2 2021 was relatively steady at 32.8%
compared to 33.6% in Q2 2020. Excluding the theft incident, gross
profit margin for Q2 was 33.3%.
SG&A Expenses
In Q2 2021, SG&A expenses increased by 81.6% to
$2.5 million, compared to
$1.4 million in Q2 2020. This
increase was primarily due to increased investment in our digital
activities, which included new digital team hires as well as an
increase in promotional digital marketing spend as compared to a
reduced employee expense base in Q2 2020 due to employee furloughs
brought on by the pandemic.
On June 30, 2021, we employed 54
people across our ten retail stores, and our two office locations
in Montreal, Canada and
Tokyo, Japan. At the end of Q2
2020, our employee headcount was 95, with most of our employee base
furloughed. Given the significant loss in net revenue from the
pandemic, we have been proactive in reducing SG&A costs and in
restructuring operations. This decrease in headcount is mainly the
result of a streamlined retail salesforce resulting from store
closures, U.S. Partner Bankruptcies, and other terminations.
Net Loss
In Q2 2021, net loss improved to $1.6
million from a net loss of $1.7
million in Q2 2020. This was primarily due to the increase
in revenue, offset by increased SG&A costs as discussed above,
as compared to Q2 2020.
Adjusted Net Loss
In Q2 2021, Adjusted Net Loss was $1.1
million as compared to an Adjusted Net Loss of $0.9 million in Q2 2020. This negative variance
was primarily due to foreign exchange adjustments. The table on
page 7 sets forth the reconciliation of Net Loss to Adjusted Net
Loss.
Adjusted EBITDA
In Q2 2021, Adjusted EBITDA was a loss of $0.8 million as compared to an Adjusted EBITDA
loss of $0.6 million in Q2 2020. This
negative variance was primarily due to adjustments pertaining to
foreign exchange and the disposition of non-core store fixtures.
The table on page 7 sets forth the reconciliation of Net Loss to
Adjusted EBITDA.
Free Cash Flow
In Q2 2021, Free Cash Flow was negative $1.2 million as compared to negative $0.7 million in Q2 2020. This negative variance
of $0.5 million resulted from a lower
net loss of $0.2 million and an
increase in non-cash charges of $0.3
million (primarily stock-based compensation), offset by a
decrease in non-cash working capital of $1.0
million due primarily to increased investment in product
inventory. The table below sets forth the computation of Free Cash
Flow for the period.
|
For the
three-months ended June 30,
|
($)
|
2021
|
2020
|
Increase
(decrease)
|
Net loss from
continuing operations
|
(1,580,635)
|
(1,741,391)
|
160,756
|
Non-cash
items:
|
|
|
|
Depreciation of
property and equipment
|
63,864
|
93,522
|
(29,658)
|
Amortization of
intangible assets
|
12,143
|
40,492
|
(28,349)
|
Amortization of
deferred financing costs
|
7,124
|
1,252
|
5,872
|
Stock-based
compensation expense
|
299,987
|
(292,473)
|
592,460
|
Gain on disposal of
property and equipment
|
(1,250)
|
—
|
(1,250)
|
Write-off of property
and equipment
|
|
169,578
|
(169,578)
|
Unrealized foreign
exchange loss
|
8,836
|
12,454
|
(3,618)
|
|
390,704
|
24,825
|
365,879
|
|
(1,189,931)
|
(1,716,566)
|
526,635
|
Net change in
non-cash working capital balances
|
(32,427)
|
994,985
|
(1,027,412)
|
Cash flows used in
operating activities
|
(1,222,358)
|
(721,581)
|
(500,777)
|
|
|
|
|
Less: Acquisitions of
property and equipment
|
(9,998)
|
—
|
(9,998)
|
Free cash
flow
|
(1,232,356)
|
(721,581)
|
(510,775)
|
Key Financial and Operating Information
The following table summarizes our recent results of operations
for the periods indicated. The selected consolidated financial
information set out below has been derived from our unaudited
interim condensed consolidated financial statements and related
notes. The selected unaudited interim condensed consolidated
financial information set out below for the periods below is
unaudited.
Consolidated statements of loss and comprehensive
loss
(in Canadian dollars)
|
For the
three-months ended June
30,
|
|
For the six-months
ended
June
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
Net
revenue
|
4,026,028
|
1,430,284
|
|
6,628,099
|
7,527,888
|
Cost of
sales
|
2,706,517
|
949,401
|
|
4,488,570
|
5,130,655
|
Gross
profit
|
1,319,511
|
480,883
|
|
2,139,529
|
2,397,233
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling, general and
administrative expenses
|
2,457,759
|
1,353,488
|
|
3,659,267
|
5,300,680
|
Amortization and
depreciation expenses
|
76,007
|
134,014
|
|
167,807
|
354,690
|
Loss from
operating activities
|
(1,214,255)
|
(1,006,619)
|
|
(1,687,545)
|
(3,258,137)
|
Other income and
expenses
|
|
|
|
|
|
Finance
costs
|
133,596
|
156,183
|
|
314,238
|
323,240
|
Foreign exchange loss
(gain)
|
214,214
|
578,589
|
|
444,316
|
(865,840)
|
Loss before income
taxes
|
(1,562,065)
|
(1,741,391)
|
|
(2,446,099)
|
(2,715,537)
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
Current
|
18,570
|
—
|
|
18,570
|
—
|
|
18,570
|
—
|
|
18,570
|
—
|
Net
loss
|
(1,580,635)
|
(1,741,391)
|
|
(2,464,669)
|
(2,715,537)
|
|
For the
three-months ended
June
30,
|
|
For the six-months
ended
June
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Reconciliation of
Net Loss to Adjusted Net Loss
|
|
|
|
|
|
Net Loss
|
(1,580,635)
|
(1,741,391)
|
|
(2,464,669)
|
(2,715,537)
|
Adjustments to Net
Loss:
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
214,214
|
578,589
|
|
444,316
|
(865,840)
|
Gain on disposal of
property and equipment
|
(1,250)
|
—
|
|
(1,250)
|
—
|
Write-off of property
and equipment
|
—
|
169,578
|
|
—
|
169,578
|
Stock-based
compensation
|
299,988
|
57,528
|
|
99,237
|
497,910
|
Store closing
costs
|
—
|
1,580
|
|
—
|
12,065
|
Adjusted Net
Loss
|
(1,067,683)
|
(934,116)
|
|
(1,922,366)
|
(2,901,824)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three-months ended
June
30,
|
|
For the six-months
ended
June
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
|
|
|
|
Net Loss
|
(1,580,635)
|
(1,741,391)
|
|
(2,464,669)
|
(2,715,537)
|
Adjustments to Net
Loss:
|
|
|
|
|
|
Amortization and
depreciation expenses
|
76,007
|
134,014
|
|
167,807
|
354,690
|
Finance
costs
|
133,596
|
156,183
|
|
314,238
|
323,240
|
Income Tax
Expense
|
18,570
|
—
|
|
18,570
|
—
|
EBITDA
|
(1,352,462)
|
(1,451,194)
|
|
(1,964,054)
|
(2,037,607)
|
|
|
|
|
|
|
Adjustments to
EBITDA:
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
214,214
|
578,589
|
|
444,316
|
(865,840)
|
Gain on disposal of
property and equipment
|
(1,250)
|
—
|
|
(1,250)
|
—
|
Write-off of property
and equipment
|
—
|
169,578
|
|
—
|
169,578
|
Stock-based
compensation
|
299,988
|
57,528
|
|
99,237
|
497,910
|
Store closing
costs
|
—
|
1,580
|
|
—
|
12,065
|
Adjusted
EBITDA
|
(839,510)
|
(643,919)
|
|
(1,421,751)
|
(2,223,894)
|
Selected Quarterly Financial Information
The following table summarizes certain of our financial results
for the most recently completed eight quarters for which financial
statements have been prepared by us as a reporting issuer. This
unaudited quarterly information has been prepared in accordance
with IFRS. Due to our recent change in strategy, the impact of
COVID-19 and other factors such as seasonality, the results of
operations for any quarter are not necessarily comparable or
indicative of the results of operations for the full year.
($)
|
|
|
|
Consolidated
statements of loss:
|
Q2-2021
|
Q1-2021
|
Q4-2020
|
Q3-2020
|
Q2-2020
|
Q1-2020
|
Q4-2019
|
Q3-2019
|
Total net
revenue
|
4,026,028
|
2,602,071
|
3,391,813
|
2,857,718
|
1,430,284
|
6,097,604
|
14,440,173
|
8,314,615
|
E-commerce
revenue
|
2,522,682
|
1,572,640
|
1,715,804
|
885,669
|
802,658
|
975,592
|
1,175,652
|
985,288
|
E-commerce revenue %
of total net
revenue
|
62.7%
|
60.4%
|
50.60%
|
31.00%
|
56.10%
|
16.00%
|
8.10%
|
11.90%
|
Gross
margin
|
32.8%
|
31.5%
|
32.7%
|
28.2%
|
33.6%
|
31.4%
|
32.8%
|
31.4%
|
Adjusted Net
Loss
|
(1,067,683)
|
(854,683)
|
(886,691)
|
(1,156,584)
|
(934,116)
|
(1,967,708)
|
(522,182)
|
(1,790,769)
|
Adjusted
EBITDA
|
(839,510)
|
(582,241)
|
(708,200)
|
(782,262)
|
(643,919)
|
(1,579,975)
|
(73,941)
|
(1,404,384)
|
Adjusted EBITDA % of
total net
revenue
|
(20.9%)
|
(22.4%)
|
(20.9%)
|
(27.4%)
|
(45.0%)
|
(25.9%)
|
(0.5%)
|
(16.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM metrics and
growth:
|
|
|
|
|
|
|
|
|
LTM Total net
revenue
|
12,877,630
|
10,281,886
|
13,777,419
|
24,825,779
|
30,282,676
|
37,410,827
|
40,069,286
|
36,493,740
|
LTM E-commerce
revenue
|
6,696,795
|
4,976,771
|
4,379,723
|
3,839,571
|
3,939,190
|
4,096,057
|
3,724,488
|
3,057,856
|
E-commerce revenue –
period over
period growth
|
214.3%
|
61.2%
|
45.9%
|
-10.1%
|
-16.3%
|
61.5%
|
131.0%
|
69.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
Net loss
|
(1,580,635)
|
(884,034)
|
(2,208,618)
|
(2,786,350)
|
(1,741,391)
|
(974,146)
|
(1,685,777)
|
(2,310,790)
|
Add: non-cash
items
|
390,704
|
(94,643)
|
97,883
|
1,135,973
|
24,825
|
642,166
|
976,914
|
1,092,204
|
Add: Net change in
non-cash working
capital
|
(32,428)
|
(628,959)
|
1,475,699
|
1,712,028
|
994,985
|
177,852
|
1,525,191
|
(1,527,515)
|
Cash flows
provided/(used) in
operating activities
|
(1,222,358)
|
(1,607,636)
|
(635,036)
|
61,651
|
(721,581)
|
(154,128)
|
816,328
|
(2,746,101)
|
Less: acquisition of
property and
equipment
|
(9,998)
|
(14,593)
|
(4,171)
|
—
|
—
|
(1,337)
|
(6,770)
|
2,204
|
Free Cash
Flow
|
(1,232,356)
|
(1,622,229)
|
(639,207)
|
61,651
|
(721,581)
|
(155,465)
|
809,558
|
(2,743,897)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
|
Cash
availability
|
4,315,918
|
4,653,792
|
7,289,957
|
501,033
|
797,777
|
1,393,351
|
3,498,824
|
2,004,827
|
Working
capital
|
7,033,183
|
7,133,717
|
8,949,997
|
2,877,864
|
4,523,360
|
-584,103
|
1,332,673
|
9,125,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
92,783,155
|
92,783,155
|
92,783,155
|
32,783,145
|
32,783,145
|
28,176,012
|
28,176,012
|
28,176,012
|
Closing share
price
|
0.130
|
0.120
|
0.245
|
0.200
|
0.250
|
0.280
|
0.205
|
0.220
|
Market
capitalization
|
12,061,810
|
11,133,979
|
22,731,873
|
6,556,629
|
8,195,786
|
7,889,283
|
5,776,082
|
6,198,723
|
Add: Total
debt*
|
5,758,443
|
4,814,459
|
5,733,129
|
5,173,259
|
5,438,870
|
6,009,844
|
8,044,331
|
7,078,735
|
Less: Cash
|
4,315,918
|
4,653,792
|
7,289,957
|
501,033
|
797,777
|
1,393,351
|
3,498,824
|
2,004,827
|
Enterprise value
(EV)
|
13,504,335
|
11,404,730
|
21,175,045
|
11,228,855
|
12,836,879
|
12,505,776
|
10,321,589
|
11,272,631
|
Multiple of EV/Last
12 months
revenue
|
1.05x
|
1.10x
|
1.54x
|
0.45x
|
0.42x
|
0.33x
|
0.26x
|
0.31x
|
|
|
|
|
|
|
|
|
|
* Total debt
includes the Line of Credit and the
BCAP loan
|
|
|
|
|
|
|
|
|
|
|
About LXR
LXR is a socially responsible, digital-first omni-channel
retailer of authenticated pre-owned luxury handbags and personal
accessories. We provide consumers with branded products from
Hermès, Louis Vuitton, Gucci, Prada,
and Chanel, among other high-quality brands, by promoting their
reuse and providing an environmentally responsible way for
consumers to purchase luxury products. We achieve this through our
digital-first strategy by selling directly to consumers through our
website at www.lxrco.com and indirectly by powering the
e-commerce platforms of key channel partners. Our omni-channel
model is also supported by retail 'shop-in-shop' experience centers
and by wholesale activities with select retail partners across
North America.
Non-IFRS Measures
This press release refers to certain non-IFRS measures. These
measures are not recognized under IFRS, do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement IFRS measures by providing further understanding of
LXR's performance and results of operations from management's
perspective. Accordingly, these measures should not be considered
in isolation nor as a substitute for analysis of LXR's financial
information reported under IFRS. Management uses non-IFRS measures
including: "LTM", "EBITDA," "Adjusted EBITDA," and "Adjusted Net
Loss". These non-IFRS measures are used to provide investors with
supplemental measures of LXR's operating performance and thus
highlight trends in LXR's business that may not otherwise be
apparent when relying solely on IFRS measures. Management believes
that securities analysts, investors and other interested parties
frequently use non-IFRS measures in the evaluation of company
performance. Management also uses non-IFRS measures in order to
facilitate operating performance comparisons from period to period,
to prepare annual operating budgets and forecasts and to determine
components of management compensation. For a definition of EBITDA,
Adjusted EBITDA, and Adjusted Net Loss, and a reconciliation of
these non-IFRS measures to IFRS measures, see the above tables
presented.
Caution Regarding Forward-Looking Statements
Certain statements in this press release are prospective in
nature and constitute forward-looking information or
forward-looking statements within the meaning of applicable
securities laws (collectively, "forward-looking
statements"). Forward-looking statements generally, but not
always, can be identified by the use of forward-looking terminology
such as "outlook", "objective", "may", "could", "would", "will",
"expect", "intend", "estimate", "forecasts", "project", "seek",
"anticipate", "believes", "should", "plans" or "continue", or
similar expressions suggesting future outcomes or events and the
negative of any of these terms. Forward-looking statements in this
news release include, but are not limited to, statements concerning
future objectives and strategies to achieve those objectives,
including, without limitation, store openings and closures, as well
as other statements with respect to management's beliefs, plans,
estimates and intentions, and similar statements concerning
anticipated future events, results, outlook, circumstances,
performance or expectations that are not historical facts.
Forward-looking statements reflect management's current beliefs,
expectations and assumptions and are based on information currently
available to management, which includes assumptions about continued
revenues based on historical past performance, management's
historical experience, perception of trends and current business
conditions, expected future developments, including the Company's
capacity to secure additional financing, and other factors which
management considers appropriate. With respect to the
forward-looking statements included in this press release,
management has made certain assumptions with respect to, among
other things, the Company's ability to meet its future objectives
and strategies, the Company's ability to achieve its future
projects and plans and that such projects and plans will proceed as
anticipated, the expected growth of the Company's e-commerce
revenue, the expected number and timing of store openings, entering
into new and/or expanded retail partnerships, the Company's ability
to source products, the Company's competitive position in the
vintage luxury industry, and beliefs and intentions regarding the
ownership of material trademarks and domain names used in
connection with the marketing, distribution and sale of the
Company's products as well as assumptions concerning general
economic and market growth rates, currency exchange and interest
rates and competitive intensity, notably in the context of the
current COVID-19 outbreak.
Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes or results anticipated or implied by
such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur.
All forward-looking statements included in and incorporated into
this press release are qualified by these cautionary statements.
Unless otherwise indicated, the forward-looking statements
contained herein are made as of the date of this press release, and
except as required by applicable law, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Readers are cautioned that the actual results achieved will vary
from the information provided herein and that such variations may
be material. Consequently, there are no representations by LXR that
actual results achieved will be the same in whole or in part as
those set out in the forward-looking statements.
SOURCE LXRandCo, Inc.