Soho House & (US:SHCO)2023-08-11 11:46Revenue Growth - Total revenues for the 13 weeks ended July 2, 2023, were $288.9 million, a 18.5% increase from $243.8 million for the same period in 2022[17]. - Membership revenues increased to $89.2 million for the 13 weeks ended July 2, 2023, up 35.3% from $65.9 million in the prior year[17]. - Revenues for the 26 weeks ended July 2, 2023, were $25,477 million, compared to $21,918 million for the same period in 2022, reflecting an increase of approximately 16%[59]. - Total segment revenue for the 26 weeks ended July 2, 2023, reached $569,609,000, compared to $457,696,000 for the same period in 2022, marking a year-over-year increase of 24.4%[123]. - Total consolidated segment revenue for the 26 weeks ended July 2, 2023, was $544,132,000, an increase from $435,778,000 for the same period in 2022, representing a growth of approximately 25%[125]. - Overall Membership revenues increased by $22,732, or 34% in constant currency[208]. Financial Performance - Net loss attributable to Soho House & Co Inc. for the 13 weeks ended July 2, 2023, was $2.6 million, compared to a net loss of $82.0 million for the same period in 2022[17]. - Operating income for the 13 weeks ended July 2, 2023, was $19.6 million, a significant improvement from an operating loss of $65.5 million in the same quarter of 2022[17]. - For the 26 weeks ended July 2, 2023, the net loss was $18,303 thousand, compared to a net loss of $144,181 thousand for the same period in 2022, indicating a significant improvement[25]. - The net loss for the 13 weeks ended July 2, 2023, was $2,287,000, compared to a net loss of $8,555,000 for the same period in 2022, showing an improvement of 73.3%[124]. - The net loss for the 26 weeks ended July 2, 2023, was $18,303,000, significantly improved from a net loss of $144,181,000 for the same period in 2022[129]. Assets and Liabilities - Total assets as of July 2, 2023, were $2.56 billion, an increase from $2.47 billion as of January 1, 2023[15]. - Total liabilities increased to $2.60 billion as of July 2, 2023, compared to $2.48 billion at the beginning of the year[15]. - The accumulated deficit as of July 2, 2023, was $1.26 billion, up from $1.24 billion at the beginning of the year[15]. - As of July 2, 2023, total shareholders' equity was $78,040 thousand, up from $182,192 thousand as of January 2, 2022, reflecting changes in accumulated deficit and other comprehensive income[23]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $129.3 million as of July 2, 2023, from $182.1 million at the beginning of the year[15]. - The company had a net cash provided by operating activities of $8,281 thousand for the 26 weeks ended July 2, 2023, down from $13,661 thousand in the same period of 2022[25]. - Cash and cash equivalents decreased to $129,285 thousand as of July 2, 2023, from $259,065 thousand as of July 3, 2022, indicating a reduction in liquidity[26]. Membership and Engagement - As of July 2, 2023, the company has approximately 248,100 members, including about 176,300 Soho House members[155]. - The company has a global waitlist of approximately 95,000 members as of July 2, 2023, indicating strong demand for memberships[160]. - Membership revenues include annual fees and one-time registration fees, while in-house revenues comprise food, beverage, accommodation, and spa services[162]. - The company’s membership model has shown resilience through economic cycles, with favorable retention rates compared to other consumer subscriptions[159]. Operational Efficiency - The House-Level Contribution Margin increased to 26%, up from 22% year-over-year, indicating improved operational efficiency[195]. - Total operating expenses decreased by 13% to $269,329, compared to $309,258 in the prior year, reflecting cost management efforts[197]. - Total segment operating expenses for the 26 weeks ended July 2, 2023, were $464,365,000, compared to $383,219,000 for the same period in 2022, indicating an increase of approximately 21%[125]. Debt and Financing - Total long-term debt, net of current portion, is $603,433,000 as of July 2, 2023, compared to $579,904,000 as of January 1, 2023[82]. - Future principal payments for the Company's debt total $778.3 million as of July 2, 2023, with $602.8 million due in 2027[96]. - The Company has a £55 million ($72 million) floating rate revolving credit facility, with £71 million ($90 million) available to draw as of July 2, 2023[84]. Share-Based Compensation - Share-based compensation expense for the 13 weeks ended July 2, 2023 was $5.657 million, compared to $4.274 million for the same period in 2022, reflecting a 32.4% increase[104]. - The company has approximately $5 million of unvested SARs expected to be recognized over a weighted average period of 1.36 years[106]. - The company granted 3,113,109 SARs and 546,743 RSUs under the 2021 Plan, with 2,936,353 SARs and 2,934,552 RSUs outstanding[103]. Foreign Exchange Impact - The company reported a foreign exchange gain of $21.6 million for the 13 weeks ended July 2, 2023, compared to a loss of $57.2 million in the same period last year[17]. - The company experienced a foreign exchange loss of $34,597 thousand for the 26 weeks ended July 2, 2023, compared to a gain of $74,250 thousand in the same period of 2022[25]. Future Outlook - The company expects to grow its member base by expanding the number of Soho Houses and launching new membership brands, leveraging its strong brand and culture of innovation[173]. - Membership pricing adjustments and the introduction of new membership brands are expected to enhance revenue potential, with historical price increases not significantly impacting retention rates[183].