e.l.f.(US:ELF)2023-02-01 16:00Financial Performance - Net sales increased by $48.4 million, or 49%, to $146.5 million for the three months ended December 31, 2022, compared to $98.1 million for the same period in 2021[72]. - Gross profit rose by $34.4 million, or 53%, to $98.7 million for the three months ended December 31, 2022, with a gross margin increase to 67% from 66% year-over-year[73]. - Net income for the three months ended December 31, 2022, was $19.1 million, compared to $6.2 million for the same period in 2021, reflecting a net income margin of 13%[71]. - For the nine months ended December 31, 2022, net sales increased by $104.5 million, or 36%, to $391.5 million, driven by a 35% increase in retailer channels and a 47% increase in e-commerce channels[78]. - Gross profit for the nine months ended December 31, 2022, increased by $77.0 million, or 42%, to $261.3 million, with a gross margin increase to 67% from 64%[79]. Expenses - Selling, general and administrative expenses (SG&A) increased by $20.1 million, or 36%, to $75.4 million for the three months ended December 31, 2022, while SG&A as a percentage of net sales decreased to 51% from 56%[74]. - SG&A expenses for the nine months ended December 31, 2022, were $201.2 million, an increase of $44.6 million, or 28%, with SG&A as a percentage of net sales decreasing to 51% from 55%[80]. Cash Flow and Liquidity - As of December 31, 2022, the company had $87.0 million in cash and cash equivalents and a borrowing capacity of $100.0 million under its Amended Revolving Credit Facility[84]. - For the nine months ended December 31, 2022, net cash provided by operating activities was $69.0 million, a significant increase from $7.8 million in the same period of 2021[90][91]. - The net increase in cash for the nine months ended December 31, 2022, was $43.7 million, compared to a decrease of $24.9 million in the prior year[89]. - Cash used in investing activities for the nine months ended December 31, 2022, was $1.6 million, down from $4.6 million in the same period of 2021, indicating reduced capital expenditures[92]. - Cash used in financing activities for the nine months ended December 31, 2022, was $23.7 million, primarily due to a $25.0 million prepayment on the Amended Term Loan Facility[93]. Taxation - The provision for income taxes was $4.3 million for the three months ended December 31, 2022, with an effective tax rate of 18.3%, compared to $2.0 million and 24.6% for the same period in 2021[77]. Assets and Liabilities - The company reported a $15.2 million increase in prepaid expenses and other assets, and a $20.6 million increase in accounts receivable for the nine months ended December 31, 2022[90]. - Working capital, excluding cash, was $88.3 million as of December 31, 2022, compared to $84.7 million as of March 31, 2022[86]. Debt and Financing - The Amended Revolving Credit Facility has a total availability of $100 million, with an unused balance of $100 million as of December 31, 2022[97]. - The interest rate for the Amended Term Loan Facility was approximately 6.0% as of December 31, 2022[98]. - The company anticipates that any additional funds necessary for long-term liquidity will be obtained through additional indebtedness or equity financings[88]. - As of December 31, 2022, the company was in compliance with all financial covenants under the Amended Credit Agreement[99]. - The company has no off-balance sheet arrangements[101].