Kaspien : Consistent Financial Performance Supported by 50 Basis Point Increase in Overall GMV, 33% Increase in Subscription GMV, and 16% Increase in Subscription Monthly Recurring Revenue (Form 8-K)

Kaspien : Consistent Financial Performance Supported by 50 Basis Point Increase in Overall GMV, 33% Increase in Subscription GMV, and 16% Increase in Subscription Monthly Recurring Revenue (Form 8-K)

Consistent Financial Performance Supported by 50 Basis Point Increase in Overall GMV, 33% Increase in Subscription GMV, and 16% Increase in Subscription Monthly Recurring Revenue

72% Year-Over-Year Growth on Non-Amazon Marketplaces Driven by Success on the Target Marketplace and Other Emerging Channels

SPOKANE, Wash.- September 14, 2021- Kaspien Holdings Inc. (NASDAQ: KSPN) (‘Kaspien’ or the ‘Company’), a number one e-commerce market progress platform, at present reported monetary outcomes for the fiscal second quarter ended July 31, 2021.

Recent Operational Highlights

Fiscal second quarter 2021 gross merchandise worth (‘GMV’) elevated 50 foundation factors to $59.0 million, in comparison with $58.7 million in the comparable year-ago interval. Subscription GMV elevated 33% to $24.9 million (42.1% of whole GMV), in comparison with $18.7 million (31.9% of whole GMV) in the comparable year-ago interval.

Leveraged diversified, versatile provide chain construction to successfully mitigate world provide challenges and inflationary value will increase. Among different strategic responses, Kaspien efficiently applied a extra sturdy direct-to-consumer achievement mannequin, using regional warehousing areas to reduce gaps in lead occasions throughout the availability chain.

Released Sponsored Brands Video Campaign Management on Kaspien’s Amazon promoting software program, AdManager. Sponsored Brands Video permits customers to automate optimizations, modify all key phrases directly by way of a centralized key phrases desk, and spotlight a given product’s distinctive promoting proposition higher than another advert sort on Amazon.

AdManager was chosen because the winner of the ‘Marketing Automation Innovation Award’ in the fourth annual MarTech Breakthrough Awards program. As Kaspien’s Amazon promoting software program, AdManager advantageous tunes a model’s Amazon pay-per-click (PPC) advertising machine to drive unprecedented outcomes, rising gross sales whereas slicing prices to maximise profitability.

Joined the Russell Microcap® Index. In place for one 12 months, inclusion in the Russell Microcap® Index means automated inclusion in the suitable progress and worth type indexes. Russell indexes are broadly used by funding managers and institutional buyers for index funds and as benchmarks for energetic funding methods.

Management Commentary

‘In the fiscal second quarter we responded capably to a difficult macroeconomic surroundings experiencing world provide chain challenges and inflationary value will increase, which is a testomony to the resiliency of our working mannequin in addition to the versatile, diversified provide chain construction we proactively constructed and have leveraged throughout this time,’ mentioned Kaspien CEO Kunal Chopra. ‘In latest months we have efficiently mobilized our groups to determine a extra sturdy direct-to-consumer achievement mannequin by using our regional warehousing areas to reduce gaps in lead occasions throughout the availability chain; this response additionally supplied a greater expertise for our model companions who had been beforehand reliant on Amazon FBA. Despite these constraints, we have been capable of drive a 50-basis level enhance in total GMV, 33% enhance in subscription GMV, and a 16% enhance in subscription month-to-month recurring income throughout the interval.

‘Our non-Amazon marketplaces are additionally persevering with to carry out effectively, registering 72% progress as a bunch, largely pushed by success on our new and rising Target+ Program. We additionally made vital platform upgrades as a part of our ongoing dedication to being a one-stop-shop for all issues model administration. This quarter, we applied reporting capabilities in our Platform Dashboard, improved Product Targeting Management, added Sponsored Brand Video Management to our AdManager software program, and developed a brand new Partner Central Rapid Prototype, all enhancements that place us effectively for continued associate success in the long run. Looking forward, whereas we anticipate these industry-wide challenges to persist, we might be investing in the approaching months to fulfill the anticipated progress in demand throughout the upcoming vacation season. Our focus over the long run might be to proceed rising total GMV because the main indicator of the success of our enterprise whereas additionally shifting our combine to extra worthwhile subscriptions and increasing into different marketplaces.’

Fiscal Second Quarter 2021 Financial Results

Results evaluate 2021 fiscal second quarter ended July 31, 2021 to 2020 fiscal second quarter ended August 1, 2020 until in any other case indicated.

Net income decreased 18% to $34.9 million from $42.3 million in the comparable year-ago interval. The lower in internet income was primarily attributable to ongoing provide challenges in the Company’s Fulfillment by Amazon (‘FBA’) US phase, which have been offset by continued progress in the Company’s different marketplaces.

Gross revenue decreased 17% to $8.8 million or 25.3% of internet income from $10.7 million or 25.3% of internet income in the comparable year-ago interval. The lower in gross revenue was primarily attributable to a discount in internet income on the Amazon US platform. Gross margin year-over-year remained flat regardless of a decline in merchandise margin fee on account of the leveraging of achievement charges and warehousing and freight bills. The desk under summarizes the year-over-year comparability of gross margin:

Thirteen Weeks Ended

(quantities in hundreds)

July 31,

2021

August 1,

2020

Merchandise margin

$

15,936

$

19,447

% of internet income

45.7

%

46.0

%

Fulfillment charges

(5,394

)

(6,867

)

Warehousing and freight

(1,708

)

(1,894

)

Gross revenue

$

8,835

$

10,685

% of internet income

25.3

%

25.3

%

Selling, General & Administrative (‘SG&A’) bills decreased 9% to $10.2 million or29.3% of internet income from $11.2 million or 26.4% of internet income in the comparable year-ago interval. The lower in SG&A bills was primarily attributable to a $1.2 million lower in promoting bills associated to the decline in internet income.

Loss from operations was $1.4 million, in comparison with a loss from operations of $493,000 in the comparable year-ago interval. The enhance in working loss was the results of the decline in internet income, partially offset by a lower in price of sale and SG&A bills.

Net revenue was $82,000, or $0.03 per diluted share, in comparison with a internet lack of $899,000, or $0.49 per diluted share, in the comparable year-ago interval. The enchancment to internet revenue was pushed by a discount in SG&A bills in addition to $1.9 million profit ensuing from the Company’s Paycheck Protection Program (‘PPP’) mortgage being forgiven throughout the interval.

Adjusted EBITDA loss (a non-GAAP metric reconciled under) was $754,000, in comparison with adjusted EBITDA of $23,000 in the comparable year-ago interval.

As of July 31, 2021, the Company had $2.6 million in money, in comparison with $1.8 million as of January 30, 2021 and $3.3 million as of August 1, 2020.

Cash used in operations was $2.5 million, in comparison with $1.6 million in the comparable year-ago interval.

Inventory at quarter finish was $25.0 million, in comparison with $20.6 million as of August 1, 2020.

As of July 31, 2021, the Company had no borrowings below its credit score facility and had $10.1 million accessible for borrowing.

Fiscal First Half 2021 Financial Results

Results evaluate six months ended July 31, 2021 to 6 months ended August 1, 2020 until in any other case indicated.

Net income elevated 2% to $75.5 million from $73.9 million in the comparable year-ago interval. This enhance in internet income was pushed by improved efficiency from non-Amazon marketplaces and the subscriptions phase, which was offset by ongoing provide challenges in the Company’s FBA US phase.

Gross revenue was $18.6 million or 24.7% of internet income, in comparison with $18.6 million or 25.2% of internet income over the comparable year-ago interval. The lower in gross margin was a results of elevated warehousing and freight prices, pushed by a rise in gross sales and world provide chain challenges. The desk under summarizes the year-over-year comparability of gross margin:

Twenty-Six Weeks Ended

(quantities in hundreds)

July 31,

2021

August 1,

2020

Merchandise margin

$

34,656

$

33,901

% of internet income

45.9

%

45.9

%

Fulfillment charges

(11,843

)

(11,865

)

Warehousing and freight

(4,182

)

(3,434

)

Gross revenue

$

18,631

$

18,602

% of internet income

24.7

%

25.2

%

SG&A bills decreased 14% to $20.9 million or 27.6% of internet income from $24.3 million or 32.9% of internet income in the comparable year-ago interval. The lower in SG&A bills was primarily attributable to a $3.5 million decline in G&A bills.

Loss from operations totaled $2.2 million, an enchancment from $5.7 million in the comparable year-ago interval. The enchancment in working outcomes was the results of greater internet income and discount in SG&A bills.

Net loss was $1.3 million, in comparison with a lack of $6.3 million in the comparable year-ago interval. The enchancment to internet loss was pushed by a discount in SG&A bills in addition to $1.9 million profit ensuing from the Company’s PPP mortgage being forgiven.

Adjusted EBITDA loss (a non-GAAP metric reconciled under) was $1.0 million, in comparison with a lack of $4.7 million in the comparable year-ago interval.

Cash used in operations was $4.9 million, in comparison with $8.1 million in the comparable year-ago interval.

Key Performance Indicators (KPIs)

Unless in any other case specified, KPI knowledge has been recorded as of fiscal quarter finish (July 31, 2021).

Fiscal second quarter 2021 GMV elevated 50 foundation factors to $59.0 million, in comparison with $58.7 million in the comparable year-ago interval. Subscription GMV elevated 33% to $24.9 million (42.1% of whole GMV), in comparison with $18.7 million (31.9% of whole GMV) in the comparable year-ago interval.

Fiscal second quarter 2021 GMV per energetic associate elevated 3% to $75,000 from $72,000 in the second quarter of fiscal 2020. The Company expects this metric to steadily develop over time as energetic companions derive extra worth from the Kaspien platform, resulting in higher associate gross sales and elevated engagement throughout extra product traces.

Total energetic associate rely for interval ended July 31, 2021 was roughly 792, together with 655 retail companions and 136 subscription (Agency and SaaS) companions. In help of the Company’s concentrate on maximizing GMV per energetic associate, Kaspien recurrently opinions and updates associate counts to optimize its use of assets on higher-value, energetic companions. The Company’s subscriptions associate base as of July 31, 2021 elevated 27% in comparison with the comparable year-ago interval.

Subscription lifetime worth to buyer acquisition price (‘LTV:CAC’) ratio as of July 31, 2021 was 3.3x with a median payback interval of 8.0 months. The sequential change was largely attributable to investments in buyer acquisition, which ought to translate to progress in subsequent quarters. As subscription companions proceed to mature and undertake extra options of the Kaspien platform, the Company expects these metrics to enhance over time.

Retail lifetime worth to buyer acquisition price as of July 31, 2021 was 9.5x with a median payback interval of 6.1 months. The enhance in retail is as a result of extra mature enterprise seeing longer partnership tenures given the longer working historical past.

During the fiscal second quarter, subscription month-to-month recurring income (‘MRR’) elevated roughly 16% to $138,000 in comparison with $109,000 on the finish of the comparable year-ago interval.

Retail phase gross income per associate for the fiscal second quarter decreased 8% to $52,000 from $57,000 in the comparable year-ago interval.

Conference Call

Kaspien will maintain a convention name at present, Tuesday, September 14, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to debate these outcomes.

Company administration will host the decision, adopted by a question-and-answer interval.

U.S. dial-in quantity: 844-602-0380

International quantity: 862-298-0970

Please name the convention phone quantity 5-10 minutes previous to the beginning time. An operator will register your identify and group. If you’ve got any problem connecting with the convention name, please contact Gateway Investor Relations at 949-574-3860.

The convention name might be broadcast reside and accessible for replay right here and by way of the investor relations part of the corporate’s web site.

A replay of the convention name might be accessible after 7:30 p.m. Eastern time by September 28, 2021.

Toll-free replay quantity: 877-481-4010

International replay quantity: 919-882-2331

Replay ID: 42618

Kaspien plans to file its annual Form 10-Q by September 14, 2021 in accordance with the SEC submitting deadlines.

About Kaspien

Kaspien Holdings Inc. (f/ok/a Trans World Entertainment Corporation) (NASDAQ: KSPN) is a number one e-commerce market progress platform, providing an increasing suite of software program and companies to assist manufacturers develop on Amazon, Walmart, Target, eBay, and different on-line marketplaces. Founded in 1972 as a brick-and-mortar retailer and rebranded as Kaspien in 2020, the Company has spent the final decade constructing and using proprietary applied sciences for model safety, advertising optimization, and achievement effectivity to generate fast income progress for its companions. Through progressive methods and best-in-class applied sciences, Kaspien has earned the belief of many main manufacturers, together with 3M, Strider Bikes, and ZippyPaws. For extra data, go to kaspien.com.

Non-GAAP Financial Measures

Adjusted EBITDA is outlined as internet loss, adjusted to exclude: (i) revenue tax expense; (ii) Other (revenue) loss; (iii) curiosity expense; and (iv) depreciation expense. Our technique of calculating adjusted EBITDA could differ from different issuers and accordingly, this measure might not be corresponding to measures used by different issuers. We use adjusted EBITDA to judge our personal working efficiency and as an integral a part of our planning course of. We current adjusted EBITDA as a supplemental measure as a result of we consider such a measure is helpful to buyers as an inexpensive indicator of working efficiency. We consider this measure is a monetary metric used by many buyers to check corporations. This measure isn’t a acknowledged measure of monetary efficiency below GAAP in the United States and shouldn’t be thought-about as an alternative to working earnings (losses), internet earnings (loss) from persevering with operations or money flows from working actions, as decided in accordance with GAAP.

Thirteen Weeks Ended

Twenty-Six Weeks Ended

(quantities in hundreds)

July 31,

2021

August 1,

2020

July 31,

2021

August 1,

2020

Net loss

$

82

$

(899

)

$

(1,335

)

$

(6,306

)

Income tax expense (profit)

46

46

Other (revenue) loss

(1,963

)

(1,963

)

Interest expense

461

406

1,015

634

Loss from operations

(1,375

)

(493

)

(2,237

)

(5,672

)

Depreciation expense

621

516

1,224

1,007

Adjusted EBITDA

$

(754

)

$

23

$

(1,013

)

$

(4,665

)

About Key Performance Indicators

Gross Merchandise Value (‘GMV’) is the whole worth of merchandise bought over a given time interval by a customer-to-customer trade web site. For Kaspien, it’s the measurement of merchandise worth bought throughout all channels and companions inside the Kaspien platform.

Lifetime Value (‘LTV’) is the common worth of a Kaspien associate over the time period of their engagement on the Kaspien platform.

Customer Acquisition Cost (‘CAC’) is the all-in price associated to buying a brand new buyer (associate) into the Kaspien platform. This refers back to the assets and prices incurred to amass new clients together with all wages and advantages related to enterprise improvement and advertising efforts driving new enterprise, the portion of inbound advertising bills associated to new enterprise, and all software program associated bills for our enterprise improvement and advertising infrastructure.

Average payback interval is a time-based calculation utilizing the common month-to-month income recognition for a Kaspien associate to cowl the related prices to amass that buyer.

Monthly Recurring Revenue (‘MRR’) is the measurement of Kaspien’s subscriptions income stream on a month-to-month foundation calculated at a given second in time. Revenues which can be recurring in nature present extra predictability into future monetary outcomes.

Forward-Looking Statements

This press launch incorporates forward-looking statements inside the that means of the Private Securities Litigation Reform Act of 1995. Certain statements in this communication are forward-looking statements. The statements contained herein that aren’t statements of historic truth could embody forward-looking statements that contain numerous dangers and uncertainties.

We have used the phrases ‘anticipate’, ‘consider’, ‘might’, ‘estimate’, ‘anticipate’, ‘intend’, ‘could’, ‘plan’, ‘predict’, ‘challenge’, and comparable phrases and phrases, together with references to assumptions, in this doc to establish forward-looking statements. These forward-looking statements are made primarily based on administration’s expectations and beliefs regarding future occasions and are topic to uncertainties and components that might trigger precise outcomes to vary materially from the outcomes expressed in the statements. The following components are amongst those who could trigger precise outcomes to vary materially from the Company’s forward-looking statements: threat of disruption of present plans and operations of Kaspien and the potential difficulties in buyer, provider and worker retention; the result of any authorized proceedings which may be instituted towards the Company; the Company’s degree of debt and associated restrictions and limitations, surprising prices, prices, bills, or liabilities; the Company’s capability to function as a going-concern; deteriorating financial circumstances and macroeconomic components; the impression of the COVID-19 pandemic; and different dangers described in the Company’s filings with the SEC, similar to its Quarterly Reports on Form 10-Q and Annual Reports on Form 10-Okay.

The reader ought to maintain in thoughts that any forward-looking assertion made by us in this doc, or elsewhere, pertains solely as of the date on which we make it. New dangers and uncertainties come up from time-to-time and it is unattainable for us to foretell these occasions or how they could have an effect on us. In gentle of those dangers and uncertainties, it is best to maintain in thoughts that any forward-looking statements made in this doc or elsewhere may not happen.

Company Contact

Ed Sapienza

Chief Financial Officer

509-202-4261

[email protected]

Investor Relations Contact

Gateway Investor Relations

Matt Glover and Tom Colton

949-574-3860

[email protected]

-Financial Tables to Follow-

KASPIEN HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in hundreds, besides per share quantities)

Thirteen Weeks Ended

Twenty-six Weeks Ended

July 31,

2021

% to Net

Revenue

August 1,

2020

% to Net

Revenue

July 31,

2021

% to Net

Revenue

August 1,

2020

% to Net

Revenue

Net income

$

34,890

$

42,296

$

75,507

$

73,885

Cost of gross sales

26,055

74.7

%

31,611

74.7

%

56,876

75.3

%

55,283

74.8

%

Gross revenue

8,835

25.3

%

10,685

25.3

%

18,631

24.7

%

18,602

25.2

%

Selling, common and administrative bills

10,210

29.3

%

11,178

26.4

%

20,868

27.6

%

24,274

32.9

%

Loss from operations

(1,375

)

-3.9

%

(493

)

-1.2

%

(2,237

)

-3.0

%

(5,672

)

-7.7

%

Interest expense

461

1.3

%

406

1.0

%

1,015

1.3

%

634

0.9

%

Other (revenue) expense

(1,963

)

-5.6

%

0.0

%

(1,963

)

-2.6

%

0.0

%

Income (loss) earlier than revenue tax expense

128

0.4

%

(899

)

-2.1

%

(1,289

)

-1.7

%

(6,306

)

-8.5

%

Income tax expense

46

0.1

%

0.0

%

46

0.1

%

0.0

%

Net revenue (loss)

$

82

0.2

%

$

(899

)

-2.1

%

$

(1,335

)

-1.8

%

$

(6,306

)

-8.5

%

BASIC AND DILUTED INCOME PER SHARE:

Basic revenue (loss) per frequent share

$

0.03

$

(0.49

)

$

(0.56

)

$

(3.46

)

Weighted common variety of frequent shares excellent – fundamental

2,491

1,825

2,404

1,823

Diluted revenue (loss) per frequent share

$

0.03

$

(0.49

)

$

(0.56

)

$

(3.46

)

Weighted common variety of frequent shares excellent – diluted

2,538

1,825

2,404

1,823

KASPIEN HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in hundreds, besides per share and share quantities)

July 31,

2021

January 30,

2021

August 1,

2020

ASSETS

Unaudited

Unaudited

CURRENT ASSETS

Cash and money equivalents

$

2,570

$

1,809

$

3,337

Restricted money

1,184

1,184

950

Accounts receivable

2,805

2,718

2,239

Merchandise stock

25,024

24,515

20,576

Prepaid bills and different present belongings

1,056

564

1,085

Total present belongings

32,639

30,790

28,187

Restricted money

2,992

3,562

4,362

Fixed belongings, internet

2,302

2,268

2,285

Operating lease right-of-use belongings

2,447

2,742

3,030

Intangible belongings, internet

218

732

1,246

Cash Surrender Value

4,277

3,856

3,411

Other belongings

1,157

1,342

2,036

TOTAL ASSETS

$

46,031

$

45,292

$

44,557

LIABILITIES

CURRENT LIABILITIES

Accounts payable

$

7,599

$

8,894

$

9,857

Short-term borrowings

6,339

2,151

Accrued bills and different present liabilities

1,941

2,512

3,812

Current portion of working lease liabilites

622

596

571

Current portion of PPP Loan

1,687

1,017

Total present liabilities

10,162

20,028

17,408

Operating lease liabilities

1,942

2,258

2,564

PPP Loan

330

1,001

Long-term debt

5,526

5,000

4,401

Other long-term liabilities

15,721

16,187

19,613

TOTAL LIABILITIES

33,351

43,803

44,987

SHAREHOLDERS’ EQUITY

Preferred inventory ($0.01 par worth; 5,000,000 shares licensed; none issued)

Common inventory ($0.01 par worth; 200,000,000 shares licensed; 3,902,985, 3,336,576 and 3,219,334 shares issued, respectively)

39

33

32

Additional paid-in capital

359,016

346,495

346,457

Treasury inventory at price (1,410,417, 1,410,378 and 1,408,043 shares, respectively)

(230,170

)

(230,169

)

(230,169

)

Accumulated different complete loss

(2,007

)

(2,007

)

(1,473

)

Accumulated deficit

(114,198

)

(112,863

)

(115,277

)

TOTAL SHAREHOLDERS’ EQUITY

12,680

1,489

(430

)

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

46,031

$

45,292

$

44,557

Disclaimer

Kaspien Holdings Inc. revealed this content material on 15 September 2021 and is solely answerable for the data contained therein. Distributed by Public, unedited and unaltered, on 15 September 2021 20:41:04 UTC.

Publicnow 2021

All information about KASPIEN HOLDINGS INC.

Sales 2022 156 M

Net revenue 2022 -2,60 M

Net Debt 2022

P/E ratio 2022 -18,2x
Yield 2022
Capitalization 47,7 M
47,7 M
Capi. / Sales 2022 0,31x
Capi. / Sales 2023 0,27x
Nbr of Employees 133
Free-Float 34,9%

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Technical evaluation traits KASPIEN HOLDINGS INC.

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Income Statement Evolution

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Mean consensus BUY
Number of Analysts 1
Last Close Price
19,12 $
Average goal value
60,00 $
Spread / Average Target 214%

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