NEW YORK -- Kidpik Corp. (NASDAQ: PIK) (“KIDPIK” or the “Company”), an online clothing subscription-based e-commerce company, today reported its financial results for the fourth quarter and fiscal year 2022 ended December 31, 2022.
Fourth Quarter 2022 Highlights:
- Revenue, net: was $4.7 million, a year over year decrease of 10.0%
- Gross margin: was 58.9%, a year over year increase of 20 basis points from 58.7% in the fourth quarter of 2021
- Shipped items: were 374,000 items, compared to 477,000 shipped items in the fourth quarter of 2021
- Average shipment keep rate: decreased to 67.6%, compared to 70.8% in the fourth quarter of 2021
- Net Loss: was $1.8 million or $0.23 loss per share
- Adjusted EBITDA: was a loss of $1.5
Full Year 2022 Financial Highlights:
- Revenue, net: was $16.5 million, a year over year decrease of 24.5%
- Gross margin: was 59.9%, a year over year increase of 40 basis points from 59.5% in 2021
- Shipped items: were 1.5 million items, compared to 2.2 million shipped items in 2021
- Average shipment keep rate: decreased to 68.3% compared to 69.0% last year
- Net Loss: was $7.6 million, or $0.99 loss per share
- Adjusted EBITDA: was a loss of $6.1 million
“Our fourth quarter revenue was $4.7 million, up by 30.6% Q/Q while keeping our operating expenses down, resulting in a Q/Q reduction in net loss by 26.4%, in what continues to be a very challenging macro environment. During the fourth quarter, we began selling the Kidpik brand on Walmart.com and recently became a “trusted partner,” said Ezra Dabah, CEO, KIDPIK.
“We remain focused on increasing subscription box sales by acquiring new customers through performance-based digital channels, including content marketing and social media. Our goal is to reduce cash burn and extend our operating runway, mainly by limiting new inventory purchases, which we believe will support our cash flow needs in the short term. Our complimentary styling service, which offers personalized children’s outfits at affordable prices through a convenient shopping experience, continues to resonate with customers," concluded Dabah.
Q4 Fiscal 2022 Summary
($ in thousands, except earnings per share) |
Q4 FY22
|
Q3 FY22
|
Q4 FY21
|
Q/Q
|
Y/Y
|
|||
Revenue |
$4,744 |
$3,633 |
$5,272 |
Up 30.6% |
Down 10% |
|||
Gross margin |
|
58.9% |
60.3% |
58.7% |
Down 1.4 pts |
Up 0.2 pts |
||
Operating expenses |
$4,560 |
$4,608 |
$4,824 |
Down 1.0% |
Down 5.5% |
|||
Operating loss |
$(1,767) |
$(2,416) |
$(1,730) |
Down 26.9% |
Up 2.1% |
|||
Net loss |
$(1,794) |
$(2,438) |
$(1,857) |
Down 26.4% |
Down 3.4% |
|||
Net loss per share |
$(0.23) |
$(0.32) |
$(0.28) |
Down 28.1% |
Down 17.9% |
|||
Revenue
by Channel
|
|
13 weeks ended December 31, 2022 |
|
|
13 weeks ended
January 1, 2022 |
|
|
Change ($) |
|
|
Change (%) |
|
||||
Revenue by channel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
3,534,962 |
|
|
$ |
4,263,840 |
|
|
|
(728,878 |
) |
|
|
(17.1 |
)% |
3rd party websites sales |
|
|
593,446 |
|
|
|
729,070 |
|
|
|
(135,624 |
) |
|
|
(18.6 |
)% |
Online website sales |
|
|
615,444 |
|
|
|
279,029 |
|
|
|
336,415 |
|
|
|
120.6 |
% |
Total revenue |
|
$ |
4,743,852 |
|
|
$ |
5,271,939 |
|
|
$ |
(528,087 |
) |
|
|
(10.0 |
)% |
|
52 weeks ended December 31, 2022 |
|
|
52 weeks ended January 1, 2022 |
|
|
Change ($) |
|
|
Change (%) |
|
|||||
Revenue by channel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
12,861,293 |
|
|
$ |
18,427,057 |
|
|
$ |
(5,565,764 |
) |
|
|
(30.2 |
)% |
3rd party websites sales |
|
|
2,170,858 |
|
|
|
2,622,884 |
|
|
|
(452,026 |
) |
|
|
(17.2 |
)% |
Online website sales |
|
|
1,445,833 |
|
|
|
784,577 |
|
|
|
661,256 |
|
|
|
84.3 |
% |
Total revenue |
|
$ |
16,477,984 |
|
|
$ |
21,834,518 |
|
|
$ |
(5,356,534 |
) |
|
|
(24.5 |
)% |
Subscription
Boxes Revenue
|
|
13 weeks ended December 31, 2022
|
|
|
13 weeks ended January 1, 2022
|
|
|
Change ($)
|
|
|
Change (%)
|
|
||||
Subscription boxes revenue from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions – recurring boxes |
|
$ |
2,934,645 |
|
|
$ |
4,091,031 |
|
|
$ |
(1,156,386 |
) |
|
|
(28.3 |
)% |
New subscriptions - first box |
|
|
600,317 |
|
|
|
172,809 |
|
|
|
427,508 |
|
|
|
247.4 |
% |
Total Subscription boxes
revenue |
|
$ |
3,534,962 |
|
|
$ |
4,263,840 |
|
|
$ |
(728,878 |
) |
|
|
(17.1 |
)% |
|
|
52 weeks ended December 31, 2022
|
|
|
52 weeks ended January 1, 2022
|
|
|
Change ($)
|
|
|
Change (%)
|
|
||||
Subscription boxes revenue from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions – recurring boxes |
|
$ |
11,007,517 |
|
|
$ |
15,565,533 |
|
|
$ |
(4,558,016 |
) |
|
|
(29.3 |
)% |
New subscriptions - first box |
|
|
1,853,776 |
|
|
|
2,861,524 |
|
|
|
(1,007,748 |
) |
|
|
(35.2 |
)% |
Total Subscription boxes
revenue |
|
$ |
12,861,293 |
|
|
$ |
18,427,057 |
|
|
$ |
(5,565,764 |
) |
|
|
(30.2 |
)% |
Revenue
by Product Line
|
|
13 weeks ended December 31, 2022 |
|
|
13 weeks ended January 1, 2022 |
|
|
Change ($) |
|
|
Change (%) |
|
||||
Revenue by product line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’ apparel |
|
$ |
3,499,888 |
|
|
$ |
4,016,285 |
|
|
$ |
(516,397 |
) |
|
|
(12.9 |
)% |
Boys’ apparel |
|
|
988,939 |
|
|
|
1,011,104 |
|
|
|
(22,165 |
) |
|
|
(2.2 |
)% |
Toddlers’ apparel |
|
|
255,026 |
|
|
|
244,550 |
|
|
|
10,476 |
|
|
|
4.3 |
% |
Total revenue |
|
$ |
4,743,853 |
|
|
$ |
5,271,939 |
|
|
$ |
(528,086 |
) |
|
|
(10.0 |
)% |
|
|
52 weeks ended December 31, 2022 |
|
|
52 weeks ended January 1, 2022 |
|
|
Change ($) |
|
|
Change (%) |
|
||||
Revenue by product line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’ apparel |
|
$ |
12,211,914 |
|
|
$ |
16,663,366 |
|
|
$ |
16,663,366 |
) |
|
|
(26.7 |
)% |
Boys’ apparel |
|
|
3,437,117 |
|
|
|
4,352,523 |
|
|
|
4,352,523 |
) |
|
|
(21.0 |
)% |
Toddlers’ apparel |
|
|
828,953 |
|
|
|
818,629 |
|
|
|
818,629 |
|
|
|
1.3 |
% |
Total revenue |
|
$ |
16,477,984 |
|
|
$ |
21,834,518 |
|
|
$ |
21,834,518 |
) |
|
|
(24.5 |
)% |
Balance Sheet and Cash Flow
- Cash at the end of the fourth quarter totaled $0.6 million compared to $8.4 million last year.
- Net cash used in operating activities decreased to $6.7 million in 2022, compared to $11.0 million of cash used in operating activities in 2021.
- As of December 31, 2022, we had $14.6 million in total current assets, $6.3 million in total current liabilities and a working capital of $8.3 million.
Kidpik Corp.
Statements of Operations
Years Ended December 31, 2022 and January 1, 2022
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues, net |
|
$ |
4,743,852 |
|
|
$ |
5,271,939 |
|
|
$ |
16,477,984 |
|
|
$ |
21,834,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
1,950,455 |
|
|
|
2,177,872 |
|
|
|
6,600,007 |
|
|
|
8,836,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
2,793,397 |
|
|
|
3,094,067 |
|
|
|
9,877,977 |
|
|
|
12,997,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipping and handling |
|
|
1,201,517 |
|
|
|
1,543,942 |
|
|
|
4,334,928 |
|
|
|
6,087,283 |
|
Payroll, related costs
and non-cash stock-based compensation |
|
|
1,139,224 |
|
|
|
1,304,611 |
|
|
|
5,276,719 |
|
|
|
4,258,604 |
|
General and
administrative
|
|
|
2,211,759 |
|
|
|
1,969,936 |
|
|
|
8,061,825 |
|
|
|
8,288,119 |
|
Depreciation and
amortization
|
|
|
7,925 |
|
|
|
5,559 |
|
|
|
27,914 |
|
|
|
26,914 |
|
Total operating
expenses
|
|
|
4,560,425 |
|
|
|
4,824,048 |
|
|
|
17,701,386 |
|
|
|
18,660,920 |
|
Operating loss |
|
|
(1,767,028 |
) |
|
|
(1,729,981 |
) |
|
|
(7,823,409 |
) |
|
|
(5,663,286 |
) |
Other (income)
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
27,162 |
|
|
|
127,508 |
|
|
|
78,646 |
|
|
|
711,974 |
|
Other income |
|
|
- |
|
|
- |
|
|
|
(286,794 |
) |
|
|
(429,045 |
) |
|
Total other (income)
expenses
|
|
|
27,162 |
|
|
|
127,508 |
|
|
|
(208,148 |
) |
|
|
282,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
|
(1,794,190 |
) |
|
|
(1,857,489 |
) |
|
|
(7,615,261 |
) |
|
|
(5,946,215 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
1,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,794,190 |
) |
|
$ |
(1,857,489 |
) |
|
$ |
(7,615,261 |
) |
|
$ |
(5,947,547 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.23 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.99 |
) |
|
$ |
(1.05 |
) |
Diluted |
|
$ |
(0.23 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.99 |
) |
|
$ |
(1.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,688,194 |
|
|
|
6,700,187 |
|
|
|
7,662,486 |
|
|
|
5,648,344 |
|
Diluted |
|
|
7,688,194 |
|
|
|
6,700,187 |
|
|
|
7,662,486 |
|
|
|
5,648,344 |
|
Kidpik Corp.
Balance Sheets
December 31, 2022 and January 1, 2022
|
|
2022 |
|
|
2021 |
|
||
Assets
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
600,595 |
|
|
$ |
8,415,797 |
|
Restricted cash |
|
|
4,618 |
|
|
|
4,703 |
|
Accounts receivable |
|
|
336,468 |
|
|
|
342,274 |
|
Inventory |
|
|
12,625,948 |
|
|
|
11,618,597 |
|
Prepaid expenses and other current assets |
|
|
1,043,095 |
|
|
|
1,726,516 |
|
Total current assets |
|
|
14,610,724 |
|
|
|
22,107,887 |
|
|
|
|
|
|
|
|
|
|
Leasehold improvements and equipment, net |
|
|
67,957 |
|
|
|
46,968 |
|
Operating lease right-of-use assets |
|
|
1,469,665 |
|
|
|
- |
|
Total assets |
|
$ |
16,148,346 |
|
|
$ |
22,154,855 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,153,389 |
|
|
$ |
2,560,361 |
|
Accounts payable, related party |
|
|
1,107,665 |
|
|
|
913,708 |
|
Accrued expenses and other current liabilities |
|
|
587,112 |
|
|
|
800,972 |
|
Advance payable |
|
|
- |
|
|
|
932,155 |
|
Operating lease liabilities |
|
|
438,957 |
|
|
|
- |
|
Short-term debt, related party |
|
|
2,050,000 |
|
|
|
2,200,000 |
|
Total current liabilities |
|
|
6,337,123 |
|
|
|
7,407,196 |
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, net of current portion |
|
|
1,061,469 |
|
|
|
- |
|
Total liabilities |
|
|
7,398,592 |
|
|
|
7,407,196 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred stock, par value $0.001,
25,000,000 shares authorized, of which no shares are issued and outstanding
as of December 31, 2022 and January 1, 2022, respectively
|
|
|
- |
|
|
|
- |
|
Common stock, par value $0.001, 75,000,000 shares authorized, of
which 7,688,194 and 7,617,834 shares are issued and outstanding as of December
31, 2022 and January 1, 2022, respectively
|
|
|
7,688 |
|
|
|
7,618 |
|
Additional paid-in capital |
|
|
50,276,511 |
|
|
|
48,659,225 |
|
Accumulated deficit |
|
|
(41,534,445 |
) |
|
|
(33,919,184 |
) |
Total stockholders’ equity |
|
|
8,749,754 |
|
|
|
14,747,659 |
|
Total liabilities and stockholders’ equity |
|
$ |
16,148,346 |
|
|
$ |
22,154,855 |
|
Kidpik Corp.
Statements of Cash Flows
Years Ended December 31, 2022 and January 1, 2022
|
|
2022 |
|
|
2021 |
|
|||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|||||||
Net loss |
|
$ |
(7,615,261 |
) |
|
$ |
(5,947,547 |
) |
|||||||
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
|
|
27,914 |
|
|
|
26,914 |
|
|||||||
Amortization of debt issuance costs |
|
- |
|
|
|
58,397 |
|
||||||||
Forgiveness of loan payable |
|
|
- |
|
|
|
(442,352 |
) |
|||||||
Equity-based compensation |
|
|
1,651,048 |
|
|
|
328,515 |
|
|||||||
Bad debt expense |
|
|
742,037 |
|
|
|
783,979 |
|
|||||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|||||||
Accounts receivable |
|
|
(736,231 |
) |
|
|
(805,807 |
) |
|||||||
Inventory |
|
|
(1,007,351 |
) |
|
|
(4,138,525 |
) |
|||||||
Prepaid expenses and other current assets |
|
|
683,421 |
|
|
|
(903,937 |
) |
|||||||
Operating lease right-of-use assets and liabilities |
|
|
30,761 |
|
|
|
- |
|
|||||||
Accounts payable |
|
|
(406,972 |
) |
|
|
(601,264 |
) |
|||||||
Accounts payable, related parties |
|
|
193,957 |
|
|
|
313,897 |
|
|||||||
Accrued expenses and other current liabilities |
|
|
(213,860 |
) |
|
|
311,862 |
|
|||||||
Net cash flows used
in operating activities
|
|
|
(6,650,537 |
) |
|
|
(11,015,868 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|||||||
Purchases of leasehold improvements and equipment |
|
|
(48,903 |
) |
|
|
(45,394 |
) |
|||||||
Net cash used
in investing activities
|
|
|
(48,903 |
) |
|
|
(45,394 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|||||||
Proceeds from issuance of long-term debt from related party |
|
|
- |
|
|
|
2,000,000 |
|
|||||||
Net repayment to line of credit |
|
|
- |
|
|
|
(2,090,515 |
) |
|||||||
Net proceeds (repayments) from loan related party |
|
|
(150,000 |
) |
|
|
2,200,000 |
|
|||||||
Net proceeds (repayments) from
advance payable |
|
|
(932,155 |
) |
|
|
103,125 |
|
|||||||
Cash used to settle net share equity awards |
|
|
(33,692 |
) |
|
|
- |
|
|||||||
Receipts
of initial public offering, net of offering costs |
|
|
- |
|
|
|
16,083,856 |
|
|||||||
Proceeds from issuance of common stock |
|
|
- |
|
|
|
500,000 |
|
|||||||
Net cash (used in) provided
by financing activities |
|
|
(1,115,847 |
) |
|
|
18,796,466 |
|
|||||||
Net (decrease) increase in cash and restricted cash |
|
|
(7,815,287 |
) |
|
|
7,735,204 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash and restricted cash, beginning of year |
|
|
8,420,500 |
|
|
|
685,296 |
|
|||||||
Cash and restricted cash,
end of year |
|
$ |
605,213 |
|
|
$ |
8,420,500 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Supplemental disclosure of cash flow data: |
|
|
|
|
|
|
|
|
|||||||
Interest paid |
|
$ |
38,607 |
|
|
$ |
573,618 |
|
|||||||
Taxes paid |
|
$ |
- |
|
|
$ |
1,332 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Supplemental disclosure of
noncash investing and financing activities: |
|
|
|
|
|
|
|
|
|||||||
Record
right-of use asset and operating lease liabilities
|
|
|
1,857,925 |
|
|
|
- |
|
|||||||
Conversion of shareholder
debt |
|
$ |
- |
|
|
$ |
2,000,000 |
|
|||||||
RESULTS OF OPERATIONS
The
Company’s revenue, net is disaggregated based on the following categories:
|
|
For the 13 weeks
ended |
|
|
For the 52 weeks
ended |
|
||||||||||
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
||||
Subscription boxes |
|
$ |
3,534,962 |
|
|
$ |
4,263,840 |
|
|
$ |
12,861,293 |
|
|
$ |
18,427,057 |
|
3rd party websites sales |
|
|
593,446 |
|
|
|
729,070 |
|
|
|
2,170,858 |
|
|
|
2,622,884 |
|
Online website sales |
|
|
615,444 |
|
|
|
279,029 |
|
|
|
1,445,833 |
|
|
|
784,577 |
|
Total revenue |
|
$ |
4,743,852 |
|
|
$ |
5,271,939 |
|
|
$ |
16,477,984 |
|
|
$ |
21,834,518 |
Gross Margin
Gross profit is equal to our net sales (revenues, net) less
cost of goods sold. Gross profit as a percentage of our net sales is referred
to as gross margin. Cost of sales consists of the purchase price of
merchandise sold to customers and includes import duties and other taxes,
freight in, defective merchandise returned from customers, receiving costs,
inventory write-offs, and other miscellaneous shrinkage.
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended
|
|
||||||||||
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||
Gross Margin |
|
|
58.9% |
|
|
|
58.7% |
|
|
|
59.9% |
|
|
|
59.5% |
|
Shipped Items
We define shipped items as the total number of items shipped in a given period to our customers through our active
subscription, Amazon and online website sales.
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended
|
|
||||||||||
|
|
(In thousands) |
|
|
(In thousands) |
|
||||||||||
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Shipped Items |
|
|
374 |
|
|
|
477 |
|
|
|
1,457 |
|
|
|
2,157 |
|
Average Shipment Keep Rate
Average shipment keep rate is calculated as the total number of
items kept by our customers divided by total number of shipped items in a given period.
|
For the
13 weeks ended |
|
|
For the 52
weeks ended
|
|
|||||||||||
|
|
December
31, 2022 |
|
|
January 1,
2022 |
|
|
December
31, 2022 |
|
|
January 1,
2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||
Average
Shipment Keep Rate
|
|
|
67.6%
|
|
|
|
70.8%
|
|
|
|
68.3%
|
|
|
|
69.0%
|
|
Non-GAAP Financial Measures
We report our financial results in
accordance with generally accepted accounting principles in the United
States (“GAAP”). However, management believes that certain non-GAAP
financial measures provide users of our financial information with additional
useful information in evaluating our performance. We believe that adjusted
EBITDA is frequently used by investors and securities analysts in their
evaluations of companies, and that this supplemental measure facilitates
comparisons between companies. This non-GAAP financial measure may be different
than similarly titled measures used by other companies.
Our non-GAAP financial measure should not
be considered in isolation from, or as substitutes for, financial information
prepared in accordance with GAAP. Adjusted EBITDA has limitations as an
analytical tool, and you should not consider it in isolation or as a substitute
for analysis of our results as reported under GAAP. Some of these limitations
are:
-
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
-
Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
-
Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
-
Adjusted EBITDA does not reflect certain non-routine items that may represent a reduction in cash available to us; and
-
Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
We compensate for these limitations by
providing a reconciliation of this non-GAAP measure to the most comparable GAAP
measure. We encourage investors and others to review our business, results of
operations, and financial information in their entirety, not to rely on any
single financial measure, and to view this non-GAAP measure in conjunction with
the most directly comparable GAAP financial measure. For more information on
these non-GAAP financial measure, please see the section titled “Unaudited
Reconciliation of Net Loss to Adjusted Earnings before Interest, Taxes,
Depreciation and Amortization (EBITDA)”, included at the end of this release.
Adjusted EBITDA
Unaudited Reconciliation of Net Loss to Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA)
We define adjusted EBITDA as net loss
excluding interest income, other (income) expense, net, provision for income
taxes, depreciation and amortization, and equity-based compensation expense.
The following table presents a reconciliation of net loss, the most comparable
GAAP financial measure, to adjusted EBITDA for each of the periods presented:
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
||||||||||
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
|
December 31, 2022 |
|
|
January 1, 2022 |
|
||||
Net loss |
|
$
|
(1,794,190 |
) |
$ |
|
(1,857,489 |
) |
|
$ |
(7,615,261 |
) |
$ |
|
(5,947,547 |
) |
Add (deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense
|
|
|
27,162 |
|
|
|
127,508
|
|
|
|
78,646 |
|
|
|
711,974 |
|
Other income |
|
|
- |
|
|
|
- |
|
|
|
(286,794 |
) |
|
|
(429,045 |
|
Provision for income taxes
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,332 |
|
Depreciation and amortization |
|
|
7,925 |
|
|
|
5,559 |
|
|
|
27,914 |
|
|
|
26,914 |
|
|
|
295,980
|
|
|
|
328,515
|
|
|
|
1,651,048
|
|
|
|
328,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(1,463,123 |
) |
|
$ |
(1,395,907 |
) |
|
$ |
(6,144,447 |
) |
$ |
|
(5,307,857 |
) |
On Monday, April 3, 2023
at 4:30pm ET, the company will host a live teleconference call that is
accessible over the internet at the company’s website,
https://investor.kidpik.com
and additionally by
dialing
1-833-816-1388 or 1-412-317-0481 for international callers.
A
replay of the conference call will be available approximately two hours after
the conclusion of the call on the investor relations section of the KIDPIK
website at
https://investor.kidpik.com
or by dialing
1-844-512-2921, or 1-412-317-6671, internationally, with the Replay Pin Number:
10177169
. The replay will be
available until April 10, 2023.
About Kidpik Corp.
Founded in 2016, KIDPIK (NASDAQ:PIK)
is an online clothing subscription box for kids, offering mix & match,
expertly styled outfits that are curated based on each member’s style
preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an
effortless shopping experience for parents and a fun discovery for kids. Each
seasonal collection is designed in-house by a team with decades of experience
designing childrenswear. KIDPIK combines the expertise of fashion stylists with
proprietary data and technology to translate kids’ unique style preferences
into surprise boxes of curated outfits. We also sell our branded clothing and
footwear through our e-commerce website,
shop.kidpik.com
. For more information,
visit
www.kidpik.com
.
Forward-Looking Statements
This press release may contain statements
that constitute “forward-looking statements” within the federal securities
laws, including The Private Securities Litigation Reform Act of 1995, which
provide a safe-harbor for forward-looking statements. In particular, when
used in the preceding discussion, the words “may,” “could,” “expect,” “intend,”
“plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,”
“continue,” “likely,” “will,” “would” and variations of these terms and similar
expressions, or the negative of these terms or similar expressions are intended
to identify forward-looking statements within the meaning of such laws, and are
subject to the safe harbor created by such applicable laws. Any statements made
in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These
statements involve known and unknown risks, uncertainties
and other factors, which may cause the results of KIDPIK to be materially
different than those expressed or implied in such statements. The
forward-looking statements may include projections and estimates of KIDPIK’s
corporate strategies, future operations and plans,
including the costs thereof. We have based these forward-looking statements on
our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical
trends, current conditions and expected future developments, as well as other
factors we believe are appropriate under the circumstances. However, whether
actual results and developments will conform with our expectations and
predictions is subject to a number of risks and uncertainties, including our
history of losses, our ability to achieve profitability, our potential need for
additional funding and the availability and terms of such funding; our ability
to execute our growth strategy and scale our operations and risks associated
with such growth, our ability to maintain current members and customers and
grow our members and customers; risks associated with the effect of the
COVID-19 pandemic, and governmental responses thereto on our operations, those
of our vendors, our customers and members and the economy in general; risks
associated with our supply chain and third-party service providers,
interruptions in the supply of raw materials and merchandise, increased costs
of raw materials, products and shipping costs due to inflation, disruptions at
our warehouse facility and/or of our data or information services, issues
affecting our shipping providers, and disruptions to the internet, any of which
may have a material adverse effect on our operations; risks that effect our
ability to successfully market our products to key demographics; the effect of
data security breaches, malicious code and/or hackers; increased competition
and our ability to maintain and strengthen our brand name; changes in consumer
tastes and preferences and changing fashion trends; material changes and/or
terminations of our relationships with key vendors; significant product returns
from customers, excess inventory and our ability to manage our inventory; the
effect of trade restrictions and tariffs, increased costs associated therewith
and/or decreased availability of products; our ability to innovate, expand our
offerings and compete against competitors which may have greater resources;
certain anti-dilutive, drag-along and tag-along rights which may be deemed to
be held by a former minority stockholder; our significant reliance on related
party transactions and loans; the fact that our Chief Executive Officer has
majority voting control over the Company; if the use of “cookie” tracking
technologies is further restricted, regulated, or blocked, or if changes in
technology cause cookies to become less reliable or acceptable as a means of
tracking consumer behavior, the amount or accuracy of internet user information
would decrease, which could harm our business and operating results; our
ability to comply with the covenants of our loan and lending agreements and
future loan covenants, and the fact that our lending facilities are secured by
substantially all of our assets; our ability to prevent credit card and payment
fraud; the risk of unauthorized access to confidential information; our ability
to protect our intellectual property and trade secrets, claims from
third-parties that we have violated their intellectual property or trade
secrets and potential lawsuits in connection therewith; our ability to comply
with changing regulations and laws, penalties associated with any
non-compliance (inadvertent or otherwise), the effect of new laws or
regulations, our ability to comply with such new laws or regulations, changes
in tax rates; our reliance and retention of our current management; the outcome
of future lawsuits, litigation, regulatory matters or claims; the fact that we
have a limited operating history; the effect of future acquisitions on our
operations and expenses; our significant indebtedness; and others that are
included from time to time in filings made by KIDPIK with the Securities and
Exchange Commission, many of which are beyond our control, including, but not
limited to, in the “Cautionary Note Regarding Forward-Looking Statements” and
“Risk Factors” sections in its Form 10-Ks and Form 10-Qs and in its Form 8-Ks,
which it has filed, and files from time to time, with the U.S. Securities and
Exchange Commission. These reports are available at www.sec.gov. The Company
cautions that the foregoing list of important factors is not complete. All
subsequent written and oral forward-looking statements attributable to the
Company or any person acting on behalf of the Company are expressly qualified
in their entirety by the cautionary statements referenced above. Other unknown
or unpredictable factors also could have material adverse effects on KIDPIK’s
future results and/or could cause our actual results and financial condition to
differ materially from those indicated in the forward-looking statements. The
forward-looking statements included in this press release are made only as of
the date hereof. KIDPIK cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not
place undue reliance on these forward-looking statements. We undertake no
obligation to update publicly any of these forward-looking statements to
reflect actual results, new information or future events, changes in
assumptions or changes in other factors affecting forward-looking statements,
except to the extent required by applicable laws and take no obligation to
update or correct information prepared by third parties that is not paid for by
the Company. If we update one or more forward-looking statements, no inference
should be drawn that we will make additional updates with respect to those or
other forward-looking statements.
Contacts
Investor Relations Contact:
[email protected]
Media:
[email protected]