Leslie's(US:LESL)2025-02-06 21:14Sales Performance - Sales for the first quarter of fiscal 2025 were $175.2 million, an increase of 0.7% compared to $174.0 million in the prior year period[4]. - Comparable sales increased by 0.2%, marking the first comparable store sales gain in two years[4]. - Sales for the three months ended December 28, 2024, were $175,228,000, a slight increase from $173,960,000 for the same period in 2023, representing a growth of approximately 0.73%[26]. - The company expects second quarter sales to range from $179 million to $189 million, with a projected net loss of $(47) million to $(44) million[6]. - For the full year fiscal 2025, sales are projected to be between $1,304 million and $1,370 million, with an expected net loss ranging from $(10) million to $5 million[7]. Financial Losses - The net loss for the quarter was $45 million, reflecting typical operational deleverage during the pool offseason[4]. - The net loss for the three months ended December 28, 2024, was $44,564,000, compared to a net loss of $39,553,000 for the same period in 2023, indicating an increase in losses of approximately 12.7%[26]. - The company reported an adjusted net loss of $41,292,000 for the three months ended December 28, 2024, compared to an adjusted net loss of $36,763,000 for the same period in 2023, an increase of about 12.9%[28]. - Basic and diluted earnings per share for the three months ended December 28, 2024, were both $(0.24), compared to $(0.21) for the same period in 2023, indicating a decline of approximately 14.3%[26]. Profitability Metrics - Adjusted EBITDA was $(29) million, at the lower end of guidance, including transformational expenses[4]. - Adjusted EBITDA for the three months ended December 28, 2024, was $(29,319,000), worsening from $(24,420,000) in the same period of 2023, a decline of about 20.5%[28]. - Gross profit for the first quarter was $47.7 million, a decrease of 5.4% compared to $50.4 million in the prior year period, with a gross margin of 27.2%[7]. - Gross profit decreased to $47,717,000 for the three months ended December 28, 2024, down from $50,408,000 in the prior year, reflecting a decline of about 5.4%[26]. Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to $11,615,000 as of December 28, 2024, down from $108,505,000 at the end of the previous quarter, a drop of approximately 89.3%[30]. - The company utilized $105,078,000 in net cash for operating activities during the three months ended December 28, 2024, compared to $71,874,000 for the same period in 2023, an increase of about 46.2%[32]. Inventory and Assets - Inventories decreased by $62.9 million or 18.8% to $271.1 million as of December 28, 2024, compared to $334.0 million as of December 30, 2023[7]. - Total assets decreased to $966,993,000 as of December 28, 2024, compared to $1,050,325,000 at the end of the previous quarter, a reduction of about 7.9%[30]. - Total liabilities were $1,187,031,000 as of December 28, 2024, down from $1,227,474,000 at the end of the previous quarter, reflecting a decrease of approximately 3.3%[30]. Capital Expenditures and Debt - Capital expenditures totaled $4.7 million in the first quarter, down from $10.7 million in the prior year[7]. - The effective rate on the term loan during the first quarter was 7.6%, down from 8.2% in the prior year[7].