Soho House & (US:SHCO)2024-08-09 12:39Revenue Performance - Total revenues for the 13 weeks ended June 30, 2024, increased to $305,146, up from $288,923 for the same period in 2023, representing a growth of 5.5%[8] - Membership revenues rose to $103,584 for the 13 weeks ended June 30, 2024, compared to $89,193 in the prior year, marking an increase of 16.0%[8] - For the 26 weeks ended June 30, 2024, Soho House reported a consolidated net loss of $81 million, compared to a net loss of $34 million for the 13 weeks[24] - The company’s consolidated revenue for the 26 weeks ended June 30, 2024, was $568.3 million, with total segment revenue of $518.8 million[96] - Total revenues for the 26 weeks ended June 30, 2024, were $568,292, reflecting a 4% increase compared to $544,132 in the prior year[176] Membership Growth - Membership revenues increased by 16% to $103,584 for the 13 weeks ended June 30, 2024, compared to $89,193 for the same period last year[200] - The number of Soho House Members reached 204,028, a 16% increase from 176,305 in the previous year[146] - Membership revenues in the Americas segment increased by $6,631, or 16%, driven by a 17% increase in Adult Paying Soho House members year-on-year[154] - The company had approximately 264,500 members, including about 204,000 Soho House Members[123] - The company has a global waitlist of approximately 111,000 applicants as of June 30, 2024, indicating strong demand for membership[124] Financial Losses - Net loss attributable to Soho House & Co Inc. for the 13 weeks ended June 30, 2024, was $(33,869), compared to a net loss of $(2,644) for the same period in 2023[9] - For the 26 weeks ended June 30, 2024, the company reported a net loss of $80,514,000, compared to a net loss of $18,303,000 for the same period in 2023, indicating a significant increase in losses[18] - The company experienced a comprehensive loss of $79,391,000 for the 26 weeks ended June 30, 2024, compared to a comprehensive loss of $41,562,000 for the same period in 2023[10] - The net loss for the 26 weeks ended June 30, 2024, was $34,175,000, reflecting various expenses including $5 million in impairment losses on intangible assets[100] Operating Expenses - General and Administrative Expenses increased by $1,483, or 4%, to $38,726 for the 13 weeks ended June 30, 2024, compared to $37,243 for the same period in 2023[167] - Total operating expenses increased by 16% to $604,743, primarily due to higher In-House operating expenses[176] - In-House operating expenses increased to $314,513 for the 26 weeks ended June 30, 2024, an increase of $18,188 or 6% year-on-year[184] - Pre-opening expenses rose by $1,446, or 34%, to $5,652 for the 13 weeks ended June 30, 2024, driven by costs associated with the opening of Scorpios Bodrum and Soho House Sao Paulo[169] Asset and Liability Changes - Total current assets increased to $405,612 as of June 30, 2024, from $395,045 as of December 31, 2023, reflecting a growth of 2.7%[5] - Total liabilities rose to $2,775,912 as of June 30, 2024, compared to $2,688,429 as of December 31, 2023, indicating an increase of 3.2%[6] - Total shareholders' deficit attributable to Soho House & Co Inc. increased to $(231,658) as of June 30, 2024, from $(158,367) as of December 31, 2023[6] - Cash and cash equivalents decreased to $151,195 as of June 30, 2024, from $161,656 as of December 31, 2023, a decline of 6.5%[5] Segment Performance - Total consolidated segment revenue for the 13 weeks ended June 30, 2024, was $305,146,000, with the Americas contributing $119,555,000, the UK $93,191,000, and Europe & RoW $52,696,000[100] - The total segment revenue for the UK was $95.1 million for the 13 weeks ended June 30, 2024[94] - The Americas accounted for $119,555 in total revenues, representing a 7% increase from $111,687 in the previous year[152] - The Europe/RoW segment saw a 23% increase in Other revenues, driven by the opening of Scorpios, Bodrum[160] Cash Flow and Investments - Cash flows from operating activities for the 26 weeks ended June 30, 2024, provided $44,992,000, a substantial increase from $8,281,000 in the prior year[18] - The net cash used in investing activities for the 26 weeks ended June 30, 2024, was $45,059,000, compared to $40,774,000 in the prior year[18] - The company incurred cash paid for interest of $17,875 thousand for the 26 weeks ended June 30, 2024, compared to $15,889 thousand for the same period in 2023[24] Shareholder Actions - The company completed a stock repurchase program of up to $50 million, which was fully utilized by December 2022[86] - The company repurchased a total of 891,045 shares of Class A common stock for $5 million during the 13 weeks and 26 weeks ended June 30, 2024, under the new stock repurchase program[87] - The company repurchased 2 million shares of Class A common stock for $12 million on September 20, 2023, and authorized a new stock repurchase program for up to $50 million[87] Future Outlook - The company is currently evaluating the impact of several new accounting standards, including ASU 2023-06 and ASU 2023-07, which may affect future disclosures[31][32] - The company has factored in global economic uncertainties, including inflationary pressures, into its cash flow forecasts for the next 12 months[26] - The company continues to adopt a going concern basis in preparing its financial statements, indicating confidence in its operational continuity[27] - The company expects to open new locations including Bangkok, Mexico City, Portland, and Sao Paulo, enhancing its global footprint[128]