Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 26, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36161 THE CONTAINER STORE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 26-0 ...

The Container Store Group, Inc. (NYSE:TCS) Q3 2020 Results Conference Call February 2, 2021 4:30 PM ET Company Participants Caitlin Churchill - Investor Relations Melissa Reiff - Chairwoman Satish Malhotra - Chief Executive Officer Jeff Miller - Chief Financial Officer Conference Call Participants Steven Forbes - Guggenheim Securities Kate McShane - Goldman Sachs Tami Zakaria - JP Morgan Operator Greetings, and welcome to The Container Store's Third Quarter 2020 Earnings Conference Call. At this time, all p ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q2 2020 financial statements reflect significant profitability improvement and substantial six-month operating cash flow growth Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | Sep 26, 2020 | Mar 28, 2020 | Sep 28, 2019 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash | $61,847 | $67,755 | $9,029 | | Inventory | $117,715 | $124,207 | $133,200 | | Total Assets | $1,108,054 | $1,166,814 | $1,140,572 | | **Liabilities & Equity** | | | | | Long-term debt | $236,955 | $317,485 | $268,007 | | Total Liabilities | $818,759 | $895,106 | $881,224 | | Total Shareholders' Equity | $289,295 | $271,708 | $259,348 | Consolidated Statements of Operations Highlights (Unaudited) | (In thousands, except per share) | Thirteen Weeks Ended Sep 26, 2020 | Thirteen Weeks Ended Sep 28, 2019 | Twenty-Six Weeks Ended Sep 26, 2020 | Twenty-Six Weeks Ended Sep 28, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $248,241 | $236,432 | $399,927 | $445,952 | | Gross profit | $146,058 | $136,804 | $224,297 | $256,611 | | Income from operations | $33,764 | $10,385 | $15,146 | $10,200 | | Net income (loss) | $20,200 | $3,646 | $3,530 | $(453) | | Diluted EPS | $0.41 | $0.08 | $0.07 | $(0.01) | Consolidated Statements of Cash Flows Highlights (Unaudited) | (In thousands) | Twenty-Six Weeks Ended Sep 26, 2020 | Twenty-Six Weeks Ended Sep 28, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $91,183 | $5,755 | | Net cash used in investing activities | $(6,858) | $(21,530) | | Net cash (used in) provided by financing activities | $(90,495) | $17,621 | | Net (decrease) increase in cash | $(5,908) | $1,665 | [Notes to the Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail business operations, COVID-19 impact, and segment performance, highlighting Q2 store reopenings, deferred lease payments, and strong TCS retail segment results - The COVID-19 pandemic caused significant disruptions, including the temporary closure of all 93 stores in Q1 2020, with all stores reopening in Q2 2020 with limited capacity, leading to a moderation in online sales as customers returned to in-store purchasing[23](index=23&type=chunk)[80](index=80&type=chunk) - In response to COVID-19, the company furloughed approximately **2,800 employees** and reduced executive salaries, with all employees active and salaries restored to pre-COVID levels as of the filing date[23](index=23&type=chunk)[82](index=82&type=chunk) - The company renegotiated lease terms due to the pandemic, resulting in the deferral of approximately **$11.9 million** of certain cash lease payments[41](index=41&type=chunk) Segment Performance (Thirteen Weeks Ended) | (In thousands) | Sep 26, 2020 | Sep 28, 2019 | | :--- | :--- | :--- | | **TCS Segment** | | | | Net sales to third parties | $233,004 | $221,235 | | Adjusted EBITDA | $38,278 | $18,661 | | **Elfa Segment** | | | | Net sales to third parties | $15,237 | $15,197 | | Adjusted EBITDA | $5,736 | $5,950 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting strong Q2 2020 recovery driven by sales growth, online surge, and cost-cutting, leading to improved profitability and strong liquidity [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Operational results show Q2 net sales up **5.0%** to **$248.2 million** and net income surging to **$20.2 million**, driven by online sales and SG&A reductions, contrasting with a **10.3%** six-month sales decrease due to Q1 store closures Q2 2020 vs Q2 2019 Performance | Metric | Q2 2020 | Q2 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $248.2M | $236.4M | +$11.8M | +5.0% | | Gross Profit | $146.1M | $136.8M | +$9.3M | +6.8% | | Gross Margin | 58.8% | 57.9% | +90 bps | N/A | | SG&A Expenses | $101.2M | $114.0M | -$12.8M | -11.2% | | Net Income | $20.2M | $3.6M | +$16.6M | +455% | - Online sales were a key driver, increasing **86.4%** in Q2 2020 and **138.2%** in the first half of fiscal 2020 compared to the same periods in the prior year[101](index=101&type=chunk)[111](index=111&type=chunk) - Q2 2020 SG&A expenses decreased by **740 basis points** as a percentage of sales, primarily due to reductions in payroll, marketing, and transportation costs[106](index=106&type=chunk) - For the twenty-six weeks ended September 26, 2020, consolidated net sales decreased **10.3%** year-over-year, primarily due to the negative impact of COVID-19 on store operations in the first quarter[111](index=111&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company actively managed liquidity in response to COVID-19, resulting in strong cash position, credit availability, robust operating cash flow, and positive free cash flow - As of September 26, 2020, the company had **$61.8 million** of cash and **$95.5 million** of additional availability under its Revolving Credit Facility[123](index=123&type=chunk) - To preserve liquidity during the pandemic, the company extended payment terms, reduced merchandise purchases, and substantially reduced planned capital expenditures for fiscal 2020[121](index=121&type=chunk) Free Cash Flow (Non-GAAP) | (In thousands) | Twenty-Six Weeks Ended Sep 26, 2020 | Twenty-Six Weeks Ended Sep 28, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $91,183 | $5,755 | | Less: Additions to property and equipment | $(6,864) | $(21,534) | | **Free cash flow** | **$84,319** | **$(15,779)** | - The company's Senior Secured Term Loan Facility had an outstanding principal amount of **$248.9 million** as of September 26, 2020[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is noted as not applicable for this reporting period - The company has indicated that there are no applicable quantitative and qualitative disclosures about market risk for this period[163](index=163&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 26, 2020, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[165](index=165&type=chunk)[166](index=166&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[167](index=167&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings incidental to its business, none expected to have a material adverse effect on financial condition or results of operations - The company is subject to various legal proceedings incidental to its business, none of which are expected to have a material adverse effect[168](index=168&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last Annual Report on Form 10-K - No material changes to risk factors were reported since the last Annual Report on Form 10-K[169](index=169&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) This section discloses key executive employment updates, including new and amended agreements for various officers, and the subsequent retirement announcement of the Chief Administrative Officer - The company entered into new employment agreements with **Melissa Collins** (Chief Marketing Officer) and **John Gehre** (Chief Merchandising Officer) on October 18, 2020[173](index=173&type=chunk) - Amended and restated employment agreements were executed for **Melissa Reiff** (President and CEO) and **Jodi Taylor** (Chief Administrative Officer) on October 18, 2020[180](index=180&type=chunk) - On October 19, 2020, **Jodi Taylor**, Chief Administrative Officer and Secretary, notified the company of her retirement, effective March 1, 2021[182](index=182&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including new and amended employment agreements for key executives and standard SEC-required certifications

The Container Store Group, Inc. (NYSE:TCS) Q2 2020 Earnings Conference Call October 20, 2020 4:30 PM ET Company Participants Caitlin Churchill - Investor Relations Melissa Reiff - Chairwoman and Chief Executive Officer Jeff Miller - Chief Financial Officer Conference Call Participants Steven Forbes - Guggenheim Securities Kate McShane - Goldman Sachs Tami Zakaria - JPMorgan Operator Greetings and welcome to Container Store Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36161 THE CONTAINER STORE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 26-05654 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 28, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001‑36161 THE CONTAINER STORE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware (State or other ...

The Container Store® Q4 and Fiscal 2019 Preliminary and Unaudited Results and Business Update May 12, 2020 ©2020 The Container Store Inc. All rights reserved. Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Commission File Number: 001-36161 THE CONTAINER STORE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 26-0565401 (I.R.S. Employer Identification No.) (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC ...

The Container Store Group, Inc. (NYSE:TCS) Q3 2019 Earnings Conference Call February 4, 2020 4:30 PM ET Company Participants Caitlin Churchill – Investor Relations Melissa Reiff – Chairwoman and Chief Executive Officer Jodi Taylor – Chief Financial Officer and Administrative Officer Conference Call Participants Steve Forbes – Guggenheim Securities Tami Zakaria – JPMorgan Operator Greetings, and welcome to The Container Store Third Quarter Fiscal Year 2019 Earnings Call. At this time, all participants are in ...

Company Overview and Financial Performance - The Container Store is the world's largest retailer focused exclusively on storage and organization products and solutions[13] - Custom Closets represent 50% of TCS total consolidated sales, with an estimated $6 billion market opportunity[13] - In FY 2018, total consolidated revenue was $895.1 million, with 93% from The Container Store and 7% from Elfa[15] - Net sales increased from $523 million in FY 2009 to $895.1 million in FY 2018[14] - Adjusted EBITDA increased from $51.9 million in FY 2009 to $96.3 million in FY 2018[13] Growth Strategies and Initiatives - Focus on Custom Closets, targeting the estimated $6 billion market[20] - Omni-channel strategy driving growth, with a +23.5% increase in YTD Q2 FY 2019 direct-to-customer online sales, following a +19.1% increase in FY 2018[21] - Modernized marketing approach with an incremental approximate $6 million investment in FY 2019[45] - Prudent management of existing store base and strategic expansion of infrastructure for future growth[50] Financial Highlights and Results - YTD Q2 FY 2019 consolidated net sales increased 6.1% to $446 million[85] - Comparable store sales increased 6.5% in YTD Q2 FY 2019[85] - YTD Q2 FY 2019 Adjusted EBITDA declined from $36.7 million to $33.1 million, primarily due to $3.6 million incremental Custom Closets marketing[85]