Tile Shop(US:TTSH)2025-11-04 21:15Financial Performance - Net sales for Q3 2025 decreased by $1.4 million, or 1.7%, compared to Q3 2024, with comparable store sales down 1.4% due to decreased traffic[3][6] - Gross margin for Q3 2025 was 62.9%, down from 66.5% in Q3 2024, primarily due to increased product costs and delivery expenses[3][7] - The company reported a net loss of $1.6 million for Q3 2025, compared to a net income of $41,000 in Q3 2024[3][12] - Adjusted EBITDA for Q3 2025 was $2.0 million, a decrease from $5.0 million in Q3 2024, representing 2.5% of net sales[3][12] - Net sales for Q3 2025 were $83,064,000, a decrease of 1.7% compared to $84,505,000 in Q3 2024[27] - Gross profit for Q3 2025 was $52,279,000, down 6.9% from $56,228,000 in Q3 2024, resulting in a gross margin rate of 62.9%[27] - Net loss for Q3 2025 was $1,614,000, compared to a net income of $41,000 in Q3 2024, leading to a loss per share of $0.04[27] - Adjusted EBITDA margin rate for Q3 2025 was 2.5%, down from 6.0% in Q3 2024[27] - Operating cash flow for the nine months ended September 30, 2025, was $11,257,000, compared to $28,511,000 for the same period in 2024[28] Expenses and Liabilities - Selling, general, and administrative expenses decreased by $1.7 million, or 3.1%, from $56.0 million in Q3 2024 to $54.2 million in Q3 2025[3][8] - Total liabilities decreased to $192,882,000 as of September 30, 2025, from $196,691,000 at the end of 2024[26] Cash and Assets - As of September 30, 2025, the company had $24.1 million in cash and no debt outstanding[3][10] - Cash and cash equivalents at the end of Q3 2025 were $24,145,000, up from $20,957,000 at the end of 2024[26] - Total current assets increased to $124,939,000 as of September 30, 2025, from $119,822,000 at the end of 2024[26] Operational Metrics - The number of stores open at the end of Q3 2025 remained at 140, unchanged from the previous year[3][4] - The pretax return on capital employed was (2.2%) for the trailing twelve months as of Q3 2025, compared to 4.8% for the same period in 2024[3][16] - The company reported a decrease in inventories to $87,240,000 as of September 30, 2025, from $86,267,000 at the end of 2024[26] Future Outlook - The company remains optimistic about future demand, citing potential catalysts from declining interest rates despite current challenges in the home improvement market[3][4] - The company anticipates potential risks affecting future performance, including market conditions and operational challenges[25] - The company plans to delist its shares from Nasdaq and suspend its duty to file periodic reports with the SEC following a proposed reverse stock split[3][11]