Tile Shop(TTSH) - 2023 Q4 - Annual Results

Sales Performance - Fourth quarter 2023 net sales decreased by $3.0 million, or 3.4%, compared to the same quarter in 2022, with comparable store sales down 3.2%[5] - Full-year 2023 net sales decreased by $17.6 million, or 4.4%, with comparable store sales down 4.1%[5] - Net sales for Q4 2023 were $84,458,000, a decrease of 3% from $87,473,000 in Q4 2022[27] Profitability Metrics - Gross margin for the fourth quarter of 2023 was 64.7%, an increase from 64.5% in the fourth quarter of 2022, while the full-year gross margin was 64.4%, down from 65.6% in 2022[6] - Adjusted EBITDA for the fourth quarter of 2023 was $6.6 million, compared to $8.9 million in the fourth quarter of 2022, representing 7.8% of net sales[10] - Full-year adjusted EBITDA was $38.8 million, or 10.3% of net sales, down from $49.6 million, or 12.6% of net sales in 2022[13] - The company reported an adjusted EBITDA margin rate of 10.3% for the twelve months ended December 31, 2023, down from 12.6% in 2022[28] Net Income - Net income for the fourth quarter of 2023 was $0.6 million, down from $1.5 million in the same quarter of 2022, with diluted earnings per share of $0.01[2] - Full-year net income was $10.1 million, compared to $15.7 million in 2022, with diluted earnings per share of $0.23[2] - Net income for the twelve months ended December 31, 2023, was $10,071,000, a decline of 36% from $15,703,000 in 2022[29] Expenses - Selling, general and administrative expenses decreased by $0.7 million, or 1.3%, in the fourth quarter of 2023, and by $9.4 million, or 4.0%, for the full year[7] - Selling, general and administrative expenses for Q4 2023 were $53,188,000, slightly down from $53,870,000 in Q4 2022[27] Financial Position - The company had no debt outstanding at year-end 2023, having repaid $45.4 million of borrowings during the year[9] - Total assets decreased to $316,672,000 as of December 31, 2023, from $345,822,000 in 2022[26] - Cash and cash equivalents increased to $8,620,000 at the end of 2023, up from $5,948,000 at the end of 2022[29] Operational Insights - The pretax return on capital employed was 12.4% for the trailing twelve months as of the end of the fourth quarter of 2023, down from 15.7% for the same period in 2022[14] - The company operated 142 stores across 31 states and the District of Columbia as of the report date[23] - The company plans to continue monitoring market conditions and adjusting its operational strategies accordingly[25] - Tile Shop Holdings, Inc. intends to utilize its website for disclosing material non-public information to comply with regulatory obligations[22]