Total and E-commerce Q4 Net Revenue Up 89% and
104%, Respectively
Record Gross Margin of 37% in
Q4
Positive Adjusted EBITDA of $0.3 Million, or 4.6% of Total Q4 Net
Revenue
Generated Free Cash Flow of $1.4 Million in Q4
Total FY 2021 Net Revenue Up 31% to
$18
Million
E-commerce FY 2021 Net Revenue Up 141% to
$10.6 Million
FY 2021
AOV Up 5% to $920
Total 2022 Net Revenue Target of $25 Million to $30
Million, Up 39% to 67%
MONTREAL, March 31,
2022 /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 handbags and personal accessories, today
reported its financial results for the fourth quarter and full year
ended December 31, 2021 ("Q4
2021" and "FY 2021", respectively).
"If 2020 was our year of survival, in FY 2021 we overcame
pandemic headwinds and successfully re-positioned our business into
a digital-first led model, marking a year of transformation for the
Company. Throughout the year, we tirelessly focused on growth,
right-sized our expense base and made key investments in talent and
e-commerce activities. In the fourth quarter of 2021, our year-long
efforts paid off. Our Q4 2021 total net revenue increased
89%, e-commerce net revenue grew 104%, we delivered a record-high
gross margin of 37% and we generated a positive adjusted EBITDA
margin of nearly 5% of total net revenue. Also during the fourth
quarter, we were free cash flow positive, which increased our
ending cash balance to $3.7 million
as compared to the $2.6 million we
reported in the third quarter of the year." said Cam di Prata, the Company's CEO.
"While the adverse effects of the pandemic still linger across
our markets, and the recent geo-political events in Europe give us cause for concern, we plan to
leverage our existing momentum and pursue additional growth
opportunities in 2022. In FY 2021 total net revenue was
$18 million, up 31% from 2020. In
2022, it is our goal to grow total net revenue to between
$25 million and $30 million, an increase of 39% to 67% as
compared to FY 2021." added Cam di
Prata.
Provided below are the financial highlights and a
discussion of our financial results for the three and twelve–month
periods ended December 31, 2021,
which are to be read in conjunction with the Company's audited
consolidated financial statements and the accompanying notes
thereto for the fiscal year ended December
31, 2021, the Company's Management's Discussion and Analysis
("MD&A") for the period and the Company's Annual
Information Form ("AIF") for the fiscal year ended
December 31, 2021, all incorporated
by reference herein. A copy of the Company's most recent financial
statements and related notes, MD&A and AIF are available under
the Company's profile on SEDAR at www.sedar.com.
Overview of Results for the
Three-Month Period Ended December 31,
2021 ("Q4 2021") as Compared to the Three-Month Period Ended
December 31, 2020 ("Q4
2020")
- Total net revenue increased 89.1% to $6.4 million as compared to $3.4 million.
- E-commerce net revenue increased 103.6% to $3.5 million and e-commerce average order value
("AOV") increased 3.9% to $927
per transaction. E-commerce net revenue as a proportion of total
net revenue ("E-commerce penetration") increased to 54.5% versus
50.6%.
- Retail net revenue was $2.9
million as compared to $1.7
million, an increase of 74.3%. At year-end we had a network
of ten stores, of which eight were open, as compared to a network
of ten stores in Q4 2020, with three in operation. As at
March 31, 2022, all our ten stores
were in operation.
- Gross margin increased to a record level 37.3% as compared to
32.7% due primarily to increased e-commerce activity in the
period.
- Selling, general and administrative ("SG&A")
expenses increased 16.0% to $2.6
million, or 40.3% of net revenue, as compared to
$2.2 million, or 65.8% of net
revenue.
- Adjusted Net Income (a non-IFRS measure) was $0.1 million as compared to an Adjusted Net Loss
of $0.9 million. Q4 2021 Adjusted Net
Income as a percent of total net revenue was 1.9%.
- We generated positive Adjusted EBITDA in Q4 2021. Adjusted
EBITDA (a non-IFRS measure) was $0.3
million as compared to an Adjusted EBITDA Loss of
$0.7 million. Q4 2021 Adjusted EBITDA
as a percent of total net revenue was 4.6%.
- We generated positive Free Cash Flow in Q4 2021. Free Cash Flow
(a non-IFRS measure) was $1.4 million
as compared to negative Free Cash Flow of $0.6 million.
- Cash availability at the end of Q4 2021 totalled $3.7 million as compared to $7.3 million in Q4 2020 and $2.6 million in Q3 2021.
Overview of Results for the Year
Ended December 31, 2021 ("FY 2021")
as Compared to the Year Ended December 31,
2020 ("FY 2020")
- Total net revenue increased 30.9% to $18.0 million from $13.8
million.
- E-commerce net revenue increased 141.1% to $10.6 million and e-commerce AOV increased 5.0%
to $920 per transaction. E-commerce
penetration increased to 58.6% versus 31.8%.
- Retail net revenue was $7.5
million as compared to $9.4
million, a decrease of 20.5%.
- Gross margin increased to 34.9% as compared to 31.3%.
- SG&A expenses decreased 21.1% to $8.2 million, or 45.3% of net revenue, as
compared to $10.4 million, or 75.2%
of net revenue in FY 2020.
- Adjusted Net Loss (a non-IFRS measure) improved to $2.2 million as compared to an Adjusted Net Loss
of $4.5 million.
- Adjusted EBITDA (a non-IFRS measure) improved to a loss of
$1.3 million as compared to an
Adjusted EBITDA loss of $3.3
million.
- Free Cash Flow (a non-IFRS measure) was negative $3.6 million as compared to Free Cash Flow of
negative $1.5 million.
Subsequent Events and
Outlook
On February 8, 2022 and
March 10, 2022, the Company reported
preliminary total and e-commerce monthly and LTM net revenue
growth. Selected financial highlights include:
- For the month of January 2022,
total net revenue was $1.0 million
and e-commerce net revenue was $0.8
million, representing growth of 113% and 62%, respectively,
as compared to January 2021.
- For the month of February 2022,
total net revenue was $1.4 million
and e-commerce net revenue was $1.1
million, representing growth of 140% and 135%, respectively,
as compared to February 2021.
- For full-year 2022, the Company is targeting total net revenue
of between $25.0 million and
$30.0 million, an increase of 38% to
67% as compared to FY 2021.
Discussion of the Three-Month
Periods and the Years Ended December 31,
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 the three-month period ended December
31, 2021, total net revenue increased 89.1% to $6.4 million from $3.4
million in Q4 2020. During this period, approximately 54.5%
of our total net revenue was generated from e-commerce and 45.5%
from retail activities (stores and wholesale channels combined), as
compared to 50.6% and 49.4%, respectively, in Q4 2020. During this
period, approximately 62.0% of our net revenue was generated in the
U.S., with the balance coming from Canada, as compared to 70% from the U.S. in Q4
2020. This shift in revenue mix is explained by the loss in U.S.
revenue from the U.S. Partner Bankruptcies in 2020, offset by a
significant increase in our Canadian e-commerce activities.
In Q4 2021, Canadian and U.S. total net revenue grew 140% and
68%, respectively, as compared to Q4 2020.
In FY 2021 total net revenue increased 30 .9% to $18.0 million as compared to $13.8 million in FY 2020. During the year,
approximately 58.6% of total net revenue was generated from
e-commerce and 41.4% from retail activities, as compared to 31.8%
and 68.2% in FY 2020. During this period, approximately 64.8% of
our net revenue was generated in the U.S., with the balance coming
from Canada, as compared to 80.3%
coming from the U.S. in FY 2020. This shift in revenue mix is
explained by the loss in U.S. revenue from the U.S. Partner
Bankruptcies in 2020, offset by a significant increase in our
Canadian e-commerce activities. In FY 2021, Canadian and U.S. total
net revenue grew 133.5% and 5.7%, respectively, as compared to FY
2020.
E-commerce
E-commerce net revenue during Q4 2021 was $3.5 million, an increase of 103.6% compared to
prior period. E-commerce penetration increased to 54.5% versus
50.6% in Q4 2020. AOV during the period was $927, an increase of 3.9% versus the comparable
period last year.
E-commerce net revenue in FY 2021 was $10.6 million, an increase of 141.1% versus the
prior year. During the year, e-commerce penetration increased to
58.6% versus 31.8% in FY 2020. AOV during the period was
$920 an increase of 5.0% versus the
comparable period last year.
Retail and Wholesale
Retail net revenue during Q4 2021 was $2.9 million, an increase of 74.3% compared to
$1.7 million in Q4 2020. The increase
reflects the partial recovery of our retail activities from the
adverse economic impact of COVID-19 on customer foot traffic and
store opening restrictions. Our store network consisted of ten
stores, of which eight were open, compared to ten stores as at
December 31, 2020, of which three
were open. During Q4 2021, we did not open or permanently close any
store locations compared to one temporary store closure in
Q4-2020.
In FY 2021, retail net revenue decreased 20.5% to $7.5 million as compared to $9.4 million in FY 2020. The decrease in total
net revenue primarily reflects the lingering adverse impact of
COVID-19 on our retail activities, as well as the impact from store
closures relating to the U.S. Partner Bankruptcies. During FY 2021,
we did not open or permanently close any store locations, compared
to 70 permanent store closures in FY 2020.
Gross Profit & Gross Profit
Margin
Gross profit in Q4 2021 increased 116% to $2.4 million as compared to $1.1 million in Q4 2020. The increase in gross
profit is attributable to the increase in total net revenue, which
grew 89.1% and to an increase in year-over-year AOV, which
increased 3.9%. Gross margin in Q4 2021, came in at a record level
37.3% compared to 32.7% in Q4 2020, primarily due to a more
profitable revenue mix made up of higher e-commerce sales which
enjoy typically higher gross margin and to greater efficiencies in
inventory management and product sourcing.
Gross profit in FY 2021 increased by 45.9% to $6.3 million as compared to $4.3 million in FY 2020. The increase in gross
profit is primarily attributable to the increase in total net
revenue, which grew 30.9% and to an increase in year-over-year AOV,
which increased 5.0%. Gross margin in FY 2021 was 34.9% compared to
31.3% in FY 2020, primarily due to a more profitable revenue
channel mix driven by greater growth in e-commerce sales which
enjoy typically higher gross margin and to greater efficiencies in
inventory management and product sourcing.
SG&A Expenses
In Q4 2021, SG&A expenses increased by 16.0% to $2.6 million, compared to $2.2 million in Q4 2020. This net increase of
$0.4 million in expense was primarily
due to higher wages and salaries (i.e. higher headcount additions,
which increased expenses 28% as compared to Q4 2020) and to higher
marketing spend (which increased 57% as compared to Q4 2020).
SG&A expenses include a gain of $163,272 related to the reversal of provisions
taken on our European activities and realized upon the finalisation
of closing procedures including the cancellation and deletion of
these European entities (the "European provision").
Throughout FY 2021, we have proactively right-sized operations
to reflect our new strategy and operating environment. In FY 2021,
SG&A expenses decreased 21.1% to $8.2
million, compared to $10.4
million in FY 2020. This net decrease of $2.2 million in expense was primarily due to
lower wages and salaries (which decreased 16% year over year) due
to a reduced store network, lower stock-based compensation costs
(down 26% from last year) and lower professional fees (down 43%
from last year), offset by higher marketing spend (which increased
128% as compared to FY 2020).
Included in FY 2020 SG&A expense was $1.7 million in charges relating to the U.S.
Partner Bankruptcies, (primarily bad debt and expenses relating to
the write-down of store fixtures and store closures) and related
payroll subsidies of $0.4 million).
Included in FY 2021 SG&A expense was a $0.2 million gain on the European provision and
related payroll subsidies of $0.2
million). Excluding these items, SG&A in FY 2021 would
have decreased 5.4% as compared to FY 2020.
As a proportion of total net revenue, SG&A expenses
decreased favorably to 45.3%, as compared to 75.2% of net
revenue.
On December 31, 2021, we employed
62 people across our two office locations in Montreal, Canada and Tokyo, Japan and in our retail store network
as compared to 42 employees on December 31,
2020. At the end of FY 2021, 42 employees were employed on a
full-time basis as compared to 34 on December 31, 2020.
Net Loss
In Q4 2021, we reduced our Net Loss to $0.5 million from a net loss of $2.2 million in Q4 2020. This $1.7 million improvement was due primarily to
higher total net revenue (which grew 89.1%) and record gross
margins, offset by marginally higher SG&A expenses as compared
to Q4 2020. In FY 2021, the Company's net loss improved by 62.0% to
$2.9 million from a net loss of
$7.7 million in the FY 2020. This
$4.8 million improvement was
primarily due to higher total net revenue (which grew 31%), strong
gross margins, and lower SG&A expenses as compared to FY
2020.
Adjusted Net Income (or Adjusted
Net Loss)
In Q4 2021, we delivered Adjusted Net Income of $0.1 million as compared to an Adjusted Net Loss
of $0.9 million in Q4 2020. Adjusted
Net Income as a percent of total net revenue was 1.9%. This
$1.0 million improvement as compared
to Q4 2020 was primarily due to a lower reported Net Loss, lower
foreign exchange losses and the gain on the European provision,
offset by higher stock-based compensation expense in the period. In
FY 2021, Adjusted Net Loss improved by 52.1% to $2.2 million as compared to an Adjusted Net Loss
of $4.5 million in the FY 2020. This
$2.4 million improvement was
primarily due to a lower reported Net Loss, lower foreign exchange
losses, the absence of any asset write-offs from the U.S. Partner
Bankruptcies, and lower stock-based compensation expense as
compared to FY 2020.
Adjusted EBITDA
In Q4 2021, we delivered Adjusted EBITDA of $0.3 million as compared to an Adjusted EBITDA
loss of $0.7 million in Q4 2020.
Adjusted EBITDA as a percent of total net revenue was 4.6%. This
$1.0 million improvement as compared
to Q4 2020 was primarily due to a lower reported Net Loss, lower
finance costs and lower foreign exchange losses, offset by higher
stock-based compensation expense in the period. In FY 2021,
Adjusted EBITDA improved by 61.0% to a loss of $1.3 million as compared to an Adjusted EBITDA
loss of $3.3 million in FY 2020. This
$2.0 million improvement was
primarily due to a lower reported Net Loss, lower foreign exchange
losses, the absence of any asset write-offs from the U.S. Partner
Bankruptcies, and lower stock-based compensation expense as
compared to FY 2020.
Free Cash Flow
In Q4 2021, we generated Free Cash Flow of $1.4 million as compared to a negative Free Cash
Flow of $0.6 million in Q4 2020. This
$2.0 million improvement, as compared
to Q4 2020, was primarily due to a lower reported Net Loss (which
improved cash flow by $1.7 million),
higher non-cash items (primarily stock-based compensation of
$0.6 million) and a lower net change
in non-cash working capital (which consumed cash by $0.2 million). Capital expenditures, as was the
case in Q4 2020, were negligible.
In FY 2021, Free Cash Flow was negative $3.6 million as compared to a negative Free Cash
Flow of $1.5 million in FY 2020. This
$2.1 million decrease was primarily
due to a lower reported Net Loss (which improved cash flow by
$4.8 million), lower non-cash items
(which decreased cash flow by $0.9
million) and a higher relative net change in non-cash
working capital (which consumed cash by $6.0
million).
The significant relative increase in net change in non-cash
working capital is directly correlated to the funding of our growth
in FY 2021 and was primarily comprised of increases in accounts and
other receivables, and inventory, offset by an increase in accounts
and other payables.
Selected Consolidated Financial Information
The following table summarizes LXR's recent results for the
periods indicated:
LXR
Consolidated
statements of loss and comprehensive loss
(in Canadian
dollars)
|
|
|
|
|
For the
three-month
periods ended
December 31,
|
|
For the years
ended
December 31,
|
|
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
6,415,527
|
3,391,813
|
|
18,031,254
|
13,777,419
|
Cost of
sales
|
|
|
|
4,019,652
|
2,283,756
|
|
11,741,471
|
9,466,577
|
Gross
profit
|
|
|
|
2,395,875
|
1,108,057
|
|
6,289,783
|
4,310,842
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
|
2,587,143
|
2,230,635
|
|
8,174,184
|
10,359,037
|
Depreciation of
property and equipment
|
|
|
|
68,471
|
72,342
|
|
277,506
|
485,318
|
Amortization of
intangible assets
|
|
|
|
4,674
|
17,010
|
|
42,482
|
136,833
|
Results from
operating activities
|
|
|
|
(264,413)
|
(1,211,930)
|
|
(2,204,389)
|
(6,670,346)
|
Other income and
expenses
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
|
|
111,286
|
150,480
|
|
542,754
|
606,858
|
Foreign exchange
loss
|
|
|
|
126,740
|
907,549
|
|
142,172
|
431,567
|
Loss before income
taxes
|
|
|
|
(502,439)
|
(2,269,959)
|
|
(2,899,315)
|
(7,708,771)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
(9,636)
|
(61,341)
|
|
8,934
|
1,734
|
|
|
|
|
(9,636)
|
(61,341)
|
|
8,934
|
1,734
|
Net
loss
|
|
|
|
(492,803)
|
(2,208,618)
|
|
(2,898,249)
|
(7,710,505)
|
The following table provides a reconciliation of Net Loss to
Adjusted Net Income or Adjusted Net Loss and Net Loss to EBITDA and
Adjusted EBITDA for the periods indicated:
|
|
|
|
For the three-month
periods ended
December 31,
|
|
For the years ended
December 31,
|
|
|
|
|
2021
|
2020
|
|
2021
|
2020
|
Reconciliation of Net Loss to Adjusted Net Income
(Loss)
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
|
(492,803)
|
(2,208,618)
|
|
(2,898,249)
|
(7,710,505)
|
Adjustments to Net Loss:
|
|
|
|
|
|
|
|
|
Foreign exchange
loss
|
|
|
|
126,740
|
907,549
|
|
142,172
|
431,567
|
Write-off of property
and equipment
|
|
|
|
—
|
(33,442)
|
|
—
|
1,049,930
|
Write-off of the right
of use liability
|
|
|
|
—
|
—
|
|
—
|
(40,077)
|
Stock-Based
Compensation Expense
|
|
|
|
643,057
|
441,832
|
|
748,838
|
1,018,483
|
Gain on disposals of
property and equipment
|
|
|
|
—
|
—
|
|
(1,250)
|
(282)
|
Loss due to bad debt
from U.S. Partner Bankruptcies
|
|
|
|
—
|
6,100
|
|
—
|
703,725
|
Gain on European
related balances
|
|
|
|
(163,272)
|
—
|
|
(163,272)
|
—
|
Store closing costs
(recovery)
|
|
|
|
9,508
|
(112)
|
|
9,508
|
11,856
|
Adjusted Net Income (Loss)
|
|
|
|
123,230
|
(886,691)
|
|
(2,162,253)
|
(4,535,303)
|
|
|
|
|
For the three-month
periods ended
December 31,
|
|
For the years ended
December 31,
|
|
|
|
|
2021
|
2020
|
|
2021
|
2020
|
Reconciliation of net loss to Adjusted
EBITDA
|
|
|
|
|
|
|
|
Net Loss
|
|
|
|
(492,803)
|
(2,208,618)
|
|
(2,898,249)
|
(7,710,505)
|
Add: Amortization and
depreciation expense
|
|
|
|
73,145
|
89,352
|
|
319,988
|
622,151
|
Add: Finance
costs
|
|
|
|
111,286
|
150,480
|
|
542,754
|
606,858
|
Add: Income tax
expense/(recovery)
|
|
|
|
2,077
|
(61,341)
|
|
8,934
|
1,734
|
EBITDA
|
|
|
|
(318,008)
|
(2,030,127)
|
|
(2,026,573)
|
(6,479,762)
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
Foreign exchange
loss
|
|
|
|
126,740
|
907,549
|
|
142,172
|
431,567
|
Gain on disposals of
property and equipment
|
|
|
—
|
—
|
|
(1,250)
|
(282)
|
Write-off of property
and equipment
|
|
|
|
—
|
(33,442)
|
|
|
1,049,930
|
Write-off of the right
of use liability
|
|
|
|
—
|
—
|
|
|
(40,077)
|
Loss due to bad debt
from U.S. Partner Bankruptcies
|
|
|
|
—
|
6,100
|
|
|
703,725
|
Loss on disposition of
subsidiaries
|
|
|
|
—
|
—
|
|
|
—
|
Stock-based
compensation expense
|
|
|
|
643,057
|
441,832
|
|
748,838
|
1,018,483
|
Gain on
European-related balances
|
|
|
|
(163,272)
|
|
|
(163,272)
|
—
|
Store (recovery)
closing costs
|
|
|
|
9,508
|
(112)
|
|
9,508
|
11,856
|
Adjusted EBITDA
|
|
|
|
298,095
|
(708,200)
|
|
(1,290,577)
|
(3,304,560)
|
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 the impact of COVID-19 and other factors such as
seasonality, the results of operations for any quarter are not
necessarily indicative of the results of operations for the full
year.
($)
|
FY
2021
|
FY
2020
|
Consolidated
statements of loss
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Total net
revenue
|
6,415,527
|
4,987,628
|
4,026,028
|
2,602,071
|
3,391,813
|
2,857,718
|
1,430,284
|
6,097,604
|
E-commerce
revenue
|
3,493,670
|
2,629,850
|
2,672,682
|
1,764,640
|
1,715,804
|
885,669
|
802,658
|
975,592
|
E-commerce revenue % of
total net revenue
|
54.5%
|
52.7%
|
66.4%
|
67.8%
|
50.6%
|
31.0%
|
56.1%
|
16.0%
|
Gross margin
|
37.3%
|
35.2%
|
32.8%
|
31.5%
|
32.7%
|
28.2%
|
33.6%
|
31.4%
|
Adjusted Net
Loss
|
123,230
|
(363,117)
|
(1,067,683)
|
(854,683)
|
(886,691)
|
(1,156,584)
|
(934,116)
|
(1,967,708)
|
Adjusted
EBITDA
|
298,025
|
(166,851)
|
(839,510)
|
(582,241)
|
(708,200)
|
(782,262)
|
(643,919)
|
(1,579,975)
|
Adjusted EBITDA % of
total net revenue
|
4.6%
|
(3.3%)
|
(20.9%)
|
(22.4%)
|
(20.9%)
|
(27.4%)
|
(45.0%)
|
(25.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Run rate metrics and
growth:
|
|
|
|
|
|
|
|
|
Total net revenue –
last 12 months revenue run-rate
|
18,031,254
|
15,007,540
|
12,877,630
|
10,281,886
|
13,777,419
|
24,825,779
|
30,282,676
|
37,410,827
|
E-commerce revenue –
last 12 months revenue run-rate
|
10,560,842
|
8,317,976
|
6,696,795
|
4,976,771
|
4,379,723
|
3,839,571
|
3,939,190
|
4,906,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
Net loss
|
(492,803)
|
59,223
|
(1,580,635)
|
(884,034)
|
(2,208,618)
|
(2,786,350)
|
(1,741,391)
|
(974,146)
|
Add: non-cash
items
|
724,391
|
(412,761)
|
889,543
|
(94,643)
|
97,883
|
1,135,973
|
24,825
|
642,166
|
Add: Net change in
non-cash working capital
|
1,221,311
|
(1,821,998)
|
(531,266)
|
(628,959)
|
1,475,699
|
1,712,028
|
994,985
|
177,852
|
Cash flows
provided/(used) in operating activities
|
1,452,899
|
(2,175,536)
|
(1,222,358)
|
(1,607,636)
|
(635,036)
|
61,651
|
(721,581)
|
(154,128)
|
Less: acquisition of
property and equipment
|
(4,283)
|
(15,436)
|
(9,998)
|
(14,593)
|
(4,171)
|
0
|
0
|
(1,337)
|
Free Cash
Flow
|
1,448,616
|
(2,190,972)
|
(1,232,356)
|
(1,622,229)
|
(639,207)
|
61,651
|
(721,581)
|
(155,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
|
Cash
availability
|
3,695,677
|
2,603,395
|
4,315,918
|
4,653,792
|
7,289,957
|
501,033
|
797,777
|
1,393,351
|
Working
capital
|
7,052,502
|
7,083,280
|
7,033,183
|
7,133,717
|
8,949,997
|
2,877,864
|
4,523,360
|
(584,103)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
32,783,145
|
32,783,145
|
28,176,012
|
Closing share
price
|
0.14
|
0.10
|
0.13
|
0.12
|
0.25
|
0.20
|
0.25
|
0.28
|
Market
capitalization
|
12,989,642
|
9,278,316
|
12,061,810
|
11,133,979
|
22,731,873
|
6,556,629
|
8,195,786
|
7,889,283
|
Add: Total
debt
|
5,999,440
|
6,272,286
|
5,758,443
|
4,814,459
|
5,733,129
|
5,173,259
|
5,438,870
|
6,009,844
|
Less: Cash
|
3,695,677
|
2,603,395
|
4,315,918
|
4,653,792
|
7,289,957
|
501,033
|
797,777
|
1,393,351
|
Enterprise value
(EV)
|
15,293,405
|
12,947,207
|
13,504,335
|
11,294,646
|
21,175,045
|
11,228,855
|
12,836,879
|
12,505,776
|
Multiple of EV/Last 12
months revenue
|
0.85x
|
0.86x
|
1.05x
|
1.10x
|
1.54x
|
0.45x
|
0.42x
|
0.33x
|
About LXR
LXR is a socially responsible, digital-first omni-channel
retailer of authenticated pre-owned handbags and personal
accessories. Since 2010, we have been providing consumers with
authenticated branded luxury 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 and other 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: "EBITDA," "Adjusted EBITDA," "Adjusted Net Loss", "Free
Cash Flow", "LTM1 Total Net Revenue",
"LTM E-commerce Net Revenue" and "Inventory Turns". 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.
__________
|
1 LTM means latest
twelve months
|
SOURCE LXRandCo, Inc.