Tile Shop(TTSH) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net sales decreased by $5.0 million, or 5.9%, compared to the fourth quarter of 2023, with comparable store sales down 5.8%[2] - Full-year 2024 net sales decreased by $30.1 million, or 8.0%, with comparable store sales declining 7.8%[5] - Adjusted EBITDA for the fourth quarter of 2024 was $3.4 million, compared to $6.6 million in the fourth quarter of 2023, and for the full year, it was $22.6 million compared to $38.8 million in 2023[10] - The company reported a net loss of $0.6 million in the fourth quarter of 2024, with a diluted loss per share of $0.01, while full-year net income was $2.3 million with diluted earnings per share of $0.05[2] - The company reported a net loss of $628,000 for the three months ended December 31, 2024, compared to a net income of $636,000 for the same period in 2023[26] Gross Margin and Profitability - Gross margin for the fourth quarter of 2024 was 64.2%, down from 64.7% in the fourth quarter of 2023, while the full-year gross margin improved to 65.7% from 64.4%[6] - Gross profit for the twelve months ended December 31, 2024, was $227,874,000, down from $243,061,000 in 2023, reflecting a gross margin rate of 65.7% compared to 64.4% in the previous year[26] - The adjusted EBITDA margin rate for the twelve months ended December 31, 2024, was 6.5%, down from 10.3% in 2023[26] Expenses and Cost Management - Selling, general and administrative expenses decreased by $1.3 million, or 2.4%, in the fourth quarter of 2024 compared to the same period in 2023[7] - Selling, general and administrative expenses for the twelve months ended December 31, 2024, were $224,357,000, slightly down from $226,903,000 in 2023[26] - The company plans to continue focusing on operational improvements and cost management strategies to enhance profitability in the upcoming periods[24] Assets and Liabilities - As of December 31, 2024, the company had no debt outstanding and cash and cash equivalents of $21.0 million[9] - Total current assets increased to $119,822,000 as of December 31, 2024, from $114,558,000 in 2023, primarily due to an increase in cash and cash equivalents[25] - Cash and cash equivalents at the end of the period were $20,957,000, significantly higher than $8,620,000 at the end of 2023[27] - The company’s total liabilities decreased marginally to $196,691,000 as of December 31, 2024, from $196,985,000 in 2023[25] Capital and Future Outlook - The pretax return on capital employed was 2.9% for the trailing twelve months as of the end of the fourth quarter in 2024, down from 12.4% in the previous year[13] - The company maintained 142 stores open at the end of both the fourth quarter of 2024 and 2023[3] - Management expressed confidence in capitalizing on opportunities in 2025 through enhancements in product lines and expansion of offerings[3] - The company experienced a cash flow from operating activities of $27,107,000 for the twelve months ended December 31, 2024, compared to $62,060,000 in 2023[27]