Soho House & (US:SHCO)2025-11-07 21:16Financial Performance - Total revenues for the 13 weeks ended September 28, 2025, reached $370,750 thousand, a 11.2% increase from $333,368 thousand for the same period in 2024[18] - Membership revenues rose to $122,702 thousand for the 13 weeks ended September 28, 2025, compared to $107,394 thousand in the prior year, marking a growth of 14.3%[18] - For the 39 weeks ended September 28, 2025, the net income was $14,631,000, a significant improvement compared to a net loss of $71,345,000 for the same period in 2024[25] - The company reported a comprehensive loss of $4,300 thousand for the 13 weeks ended September 28, 2025, compared to a loss of $30,006 thousand for the same period in 2024[19] - The profit attributable to Soho House & Co Inc. for the 13 weeks ended September 28, 2025, was a loss of $18,708,000, compared to a profit of $175,000 for the same period in 2024[140] Assets and Liabilities - Total assets increased to $2,684,224 thousand as of September 28, 2025, up from $2,443,512 thousand as of December 29, 2024, representing a growth of approximately 9.8%[16] - Total liabilities increased to $3,033,128 thousand as of September 28, 2025, up from $2,772,970 thousand as of December 29, 2024, reflecting a rise of approximately 9.4%[17] - Total current assets increased to $405,225 thousand as of September 28, 2025, from $388,401 thousand as of December 29, 2024, an increase of approximately 4.3%[16] - The accumulated deficit decreased to $(1,525,155) thousand as of September 28, 2025, from $(1,539,500) thousand as of December 29, 2024, indicating an improvement in the company's financial position[17] - As of September 28, 2025, total long-term debt, net of current portion, is $704,032,000, an increase from $656,868,000 as of December 29, 2024, representing a growth of approximately 7.2%[108] Cash Flow and Operating Activities - The total cash provided by operating activities for the 39 weeks ended September 28, 2025, was $98,757,000, up from $62,794,000 in the prior year[25] - The Company reported net cash provided by operations of $99 million during the 39 weeks ended September 28, 2025[42] - Cash and cash equivalents decreased to $142,490 thousand as of September 28, 2025, down from $152,716 thousand as of December 29, 2024, a decline of about 6.5%[16] Expenses and Impairments - The company recognized $14 million in impairment losses on long-lived assets, primarily related to operating lease assets[169] - The company reported a loss on impairment of long-lived assets of $2,102,000 for the 39 weeks ended September 28, 2025[25] - Other expenses included $7 million related to third-party advisory expenses and $4 million for planned ERP systems implementation[165] Membership and Revenue Streams - As of September 28, 2025, SHCO had approximately 269,600 members, including about 213,800 Soho House Members[209] - The global waitlist for SHCO membership stands at over 111,000 applicants as of September 28, 2025[212] - Membership Revenues consist of annual membership fees and one-time initial registration fees, while In-House Revenues include food and beverage, accommodation, and spa products[214] - In-house revenues for the 39 weeks ended September 28, 2025, totaled $391.879 million, demonstrating robust growth in this segment[169] Strategic Initiatives and Future Outlook - The Company is implementing a new modernized finance ERP system to enhance internal controls and support strategic growth initiatives[35] - The company entered into definitive agreements for a merger on August 15, 2025, which is subject to shareholder approval[29] - The Company has assessed the impact of BEPS Pillar Two Minimum Tax legislation and concluded it will not materially affect the effective tax rate or tax payments for this period[158] Tax and Regulatory Matters - The effective tax rate for the 13 weeks ended September 28, 2025, was 39.0%, a significant decrease from 96.2% for the same period in 2024[155] - The gross unrecognized tax benefits increased by $4 million in the 39 weeks ended September 28, 2025[157] - The Company recorded valuation allowances against deferred tax assets primarily in the U.K., U.S., and Hong Kong, with potential changes in the next twelve months[156] Shareholder and Equity Matters - The Company has 3,601,931 shares available for future awards under the 2021 Equity and Incentive Plan as of September 28, 2025[126] - The Company granted 306,146 new RSUs under the 2021 Plan during the 39 weeks ended September 28, 2025[126] - Total share-based compensation expense for the 13 weeks ended September 28, 2025, was $3,505,000, compared to $3,513,000 for the same period in 2024, while for the 39 weeks, it was $8,021,000 versus $15,150,000[129]