|
Delaware
(State or other jurisdiction of
incorporation or organization) |
| |
7299
(Primary Standard Industrial
Classification Code Number) |
| |
86-3150064
(I.R.S. Employer
Identification Number) |
|
|
Copies to:
|
| |||
|
John C. Kennedy, Esq.
Monica K. Thurmond, Esq. Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, New York 10019-6064 (212) 373-3000 |
| |
Marc D. Jaffe, Esq.
Ian D. Schuman, Esq. Alison A. Haggerty, Esq. Latham & Watkins LLP 1271 Avenue of the Americas New York, New York 10020 (212) 906-1200 |
|
| Large accelerated filer ☐ | | |
Accelerated filer ☐
|
|
| Non-accelerated filer ☒ | | |
Smaller reporting company ☐
Emerging growth company ☒ |
|
|
CALCULATION OF REGISTRATION FEE
|
| ||||||||
|
Title of each Class of
Securities to be Registered |
| | |
Proposed Maximum
Aggregate Offering Price(1)(2) |
| | |
Amount of
Registration Fee |
|
|
Class A common stock, par value $0.00001 per share
|
| | |
$100,000,000
|
| | |
$10,910
|
|
| | | | | 1 | | | |
| | | | | 25 | | | |
| | | | | 59 | | | |
| | | | | 61 | | | |
| | | | | 67 | | | |
| | | | | 69 | | | |
| | | | | 70 | | | |
| | | | | 71 | | | |
| | | | | 73 | | | |
| | | | | 80 | | | |
| | | | | 100 | | | |
| | | | | 119 | | | |
| | | | | 125 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||||||||
(in thousands, except percentages and operating data)
|
| |
June 26, 2021
(Estimated Low) |
| |
June 26, 2021
(Estimated High) |
| |
June 27, 2020
(Actual) |
| |||||||||
Total revenue
|
| | | $ | | | | | $ | | | | | $ | | | |||
Net income (loss)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Adjusted EBITDA
|
| | | $ | | | | | $ | | | | | $ | | | |||
Number of system-wide centers (at period end)
|
| | | | |||||||||||||||
System-wide sales
|
| | | $ | | | | | $ | | | | | $ | | | |||
Same-store sales
|
| | | | % | | | | | | % | | | | | | % | | |
New center openings
|
| | | | | | | | | | | | | | | | | | |
Net debt(1)
|
| | | |
| | |
Thirteen Weeks Ended
|
| |||||||||||||||
(in thousands)
|
| |
June 26, 2021
(Estimated Low) |
| |
June 26, 2021
(Estimated High) |
| |
June 27, 2020
(Actual) |
| |||||||||
Net income (loss)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Interest expense
|
| | | | | | | | | | | | | | | | | | |
Provision for income taxes
|
| | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | | | | | | | | | | | | | | | |
Amortization
|
| | | | | | | | | | | | | | | | | | |
EBITDA
|
| | | $ | | | | | $ | | | | | $ | | | |||
Exit costs – lease abandonment(1)
|
| | | | | | | | | | | | | | | | | | |
Corporate headquarter relocation(2)
|
| | | | | | | | | | | | | | | | | | |
Share-based compensation(3)
|
| | | | | | | | | | | | | | | | | | |
IPO-related costs(4)
|
| | | | | | | | | | | | | | | | | | |
Other compensation-related costs(5)
|
| | | | | | | | | | | | | | | | | | |
Adjusted EBITDA
|
| | | $ | | | | | $ | | | | | $ | | | |
| | |
EWC Ventures
Historical |
| |
European Wax
Center, Inc. Pro Forma (unaudited) |
| ||||||||||||||||||||||||
| | |
Thirteen Weeks Ended
|
| |
Year Ended
|
| |
Year Ended
December 26, 2020 |
| |||||||||||||||||||||
(in thousands, except share, per share and
operating data) |
| |
March 27,
2021 |
| |
March 28,
2020 |
| |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||||||||||||||
Statement of Operations Data:
|
| | | | | | | | | | | | | |
|
| | | |||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Product sales
|
| | | $ | 20,617 | | | | | $ | 18,345 | | | | | $ | 56,977 | | | | | $ | 83,620 | | | | | $ | | | |
Royalty fees
|
| | | | 8,850 | | | | | | 8,901 | | | | | | 25,674 | | | | | | 36,737 | | | | | | | | |
Marketing fees
|
| | | | 4,934 | | | | | | 3,559 | | | | | | 13,465 | | | | | | 21,972 | | | | | | | | |
Other revenues
|
| | | | 2,256 | | | | | | 2,018 | | | | | | 7,291 | | | | | | 11,868 | | | | | | | | |
Total revenue
|
| | | | 36,657 | | | | | | 32,823 | | | | | | 103,407 | | | | | | 154,197 | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Cost of revenue
|
| | | | 9,931 | | | | | | 8,678 | | | | | | 35,508 | | | | | | 40,898 | | | | | | | | |
Selling, general and administrative
|
| | | | 11,066 | | | | | | 10,378 | | | | | | 38,997 | | | | | | 64,967 | | | | | | | | |
| | |
EWC Ventures
Historical |
| |
European Wax
Center, Inc. Pro Forma (unaudited) |
| ||||||||||||||||||||||||
| | |
Thirteen Weeks Ended
|
| |
Year Ended
|
| |
Year Ended
December 26, 2020 |
| |||||||||||||||||||||
(in thousands, except share, per share and
operating data) |
| |
March 27,
2021 |
| |
March 28,
2020 |
| |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||||||||||||||
Advertising
|
| | | | 4,884 | | | | | | 3,688 | | | | | | 11,495 | | | | | | 21,132 | | | | | | | | |
Depreciation and
amortization |
| | | | 5,138 | | | | | | 4,898 | | | | | | 19,582 | | | | | | 15,534 | | | | | | | | |
Loss on disposal of assets and
non-cancellable contracts |
| | | | — | | | | | | — | | | | | | 1,044 | | | | | | 4,451 | | | | | | | | |
Impairment of internally developed software
|
| | | | — | | | | | | — | | | | | | — | | | | | | 18,183 | | | | | | | | |
Gain on sale of centers
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2,120) | | | | | | | | |
Total operating expenses
|
| | | | 31,019 | | | | | | 27,642 | | | | | | 106,626 | | | | | | 163,045 | | | | | | | | |
Income (loss) from operations
|
| | | | 5,638 | | | | | | 5,181 | | | | | | (3,219) | | | | | | (8,848) | | | | | | | | |
Interest expense
|
| | | | (4,536) | | | | | | (4,222) | | | | | | (18,276) | | | | | | (15,548) | | | | | | | | |
Net income (loss)
|
| | | $ | 1,102 | | | | | $ | 959 | | | | | $ | (21,495) | | | | | $ | (24,396) | | | | | $ | | | |
Net income (loss) attributable to
non-controlling interest |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to
European Wax Center, Inc. |
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | | ||||
Earnings (loss) per share to Class A common stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | | | |
Weighted average number of shares of Class A common stock used in computing earnings (loss) per share:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per unit
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | 0.01 | | | | | $ | 0.03 | | | | | $ | (0.67) | | | | | $ | (0.70) | | | | | | | | |
Class A Units
|
| | | $ | 0.01 | | | | | $ | 0.03 | | | | | $ | (0.67) | | | | | $ | (0.70) | | | | | | | | |
Weighted average units outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Class A Founders’ Units
|
| | | | 8,309,193 | | | | | | 8,309,193 | | | | | | 8,309,193 | | | | | | 8,309,193 | | | | |||||
Class A Units
|
| | | | 26,323,027 | | | | | | 26,401,089 | | | | | | 26,401,089 | | | | | | 26,401,089 | | | | |||||
|
| | |
EWC Ventures
Historical |
| |
European Wax
Center, Inc. Pro Forma (unaudited) |
| ||||||||||||||||||||||||
(in thousands, except share, per share and
operating data) |
| |
Thirteen
Weeks Ended March 27, 2021 |
| |
Thirteen
Weeks Ended March 28, 2020 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| |
Year Ended
December 26, 2020 |
| |||||||||||||||
Balance Sheet Data (at period end): | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Total assets
|
| | | $ | 617,564 | | | | | | | | | | | $ | 606,900 | | | | | $ | 576,479 | | | | | $ | | | |
Total liabilities
|
| | | | 298,922 | | | | | | | | | | | | 288,877 | | | | | | 262,161 | | | | | | | | |
Total debt, net
|
| | | $ | 265,130 | | | | | | | | | | | $ | 265,403 | | | | | $ | 225,279 | | | | | | | | |
Cash Flow Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by operating activities
|
| | | $ | (1,987) | | | | | $ | 1,450 | | | | | $ | 1,397 | | | | | $ | 14,701 | | | | | | | | |
Net cash used in investing activities
|
| | | | (4,499) | | | | | | (29,512) | | | | | | (36,843) | | | | | | (40,694) | | | | | | | | |
Net cash (used in) provided by financing activities
|
| | | | (1,547) | | | | | | 29,706 | | | | | | 61,902 | | | | | | 27,807 | | | | | | | | |
Net (decrease) increase in cash
|
| | | | (8,033) | | | | | | 1,644 | | | | | | 26,456 | | | | | | 1,814 | | | | | | | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA(1)
|
| | | $ | 10,776 | | | | | $ | 10,079 | | | | | $ | 16,363 | | | | | $ | 6,686 | | | | | | | | |
Adjusted EBITDA(1)
|
| | | | 12,534 | | | | | | 11,712 | | | | | | 20,001 | | | | | | 34,005 | | | | | | | | |
Number of system-wide centers (at period end)
|
| | | | 808 | | | | | | 766 | | | | | | 796 | | | | | | 750 | | | | | | | | |
System-wide sales
|
| | | $ | 156,963 | | | | | $ | 158,004 | | | | | $ | 468,764 | | | | | $ | 687,402 | | | | | | | | |
Same-store sales
|
| | | | (6.2)% | | | | | | (5.6)% | | | | | | (35.6)% | | | | | | 9.8% | | | | |||||
New center openings
|
| | | | 12 | | | | | | 16 | | | | | | 46 | | | | | | 38 | | | | | | | | |
AUV
|
| | | | | | | | | | | | | | | | 606 | | | | | | 940 | | | | | | | | |
| | |
EWC Ventures
Historical |
| |||||||||||||||||||||
(in thousands)
|
| |
Thirteen
Weeks Ended March 27, 2021 |
| |
Thirteen
Weeks Ended March 28, 2020 |
| |
Year Ended
December 26, 2020 |
| |
Year Ended
December 28, 2019 |
| ||||||||||||
Reconciliation of net income (loss) to EBITDA to Adjusted
EBITDA: |
| | | | | | | | | | | | | | | | | | | | |||||
Net income (loss)
|
| | | $ | 1,102 | | | | | $ | 959 | | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Interest expense
|
| | | | 4,536 | | | | | | 4,222 | | | | | | 18,276 | | | | | | 15,548 | | |
Provision for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Depreciation
|
| | | | 428 | | | | | | 371 | | | | | | 1,649 | | | | | | 2,198 | | |
Amortization
|
| | | | 4,710 | | | | | | 4,527 | | | | | | 17,933 | | | | | | 13,336 | | |
EBITDA
|
| | | $ | 10,776 | | | | | $ | 10,079 | | | | | $ | 16,363 | | | | | $ | 6,686 | | |
Impairment of internally developed software(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 18,183 | | |
Exit costs – lease abandonment(2)
|
| | | | — | | | | | | 159 | | | | | | 159 | | | | | | 778 | | |
Corporate headquarters relocation(3)
|
| | | | — | | | | | | 483 | | | | | | 671 | | | | | | 6,097 | | |
Share-based compensation(4)
|
| | | | 298 | | | | | | 827 | | | | | | 2,052 | | | | | | 1,570 | | |
IPO-related costs(5)
|
| | | | 1,123 | | | | | | — | | | | | | 179 | | | | | | — | | |
Other compensation-related costs(6)
|
| | | | 337 | | | | | | 164 | | | | | | 577 | | | | | | 691 | | |
Adjusted EBITDA
|
| | | $ | 12,534 | | | | | $ | 11,712 | | | | | $ | 20,001 | | | | | $ | 34,005 | | |
| | |
As of March 27, 2021
|
| |||||||||||||||
(in thousands, except units)
|
| |
EWC Ventures
Actual |
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |||||||||
Cash and cash equivalents
|
| | | $ | 28,687 | | | | | $ | | | | | $ | | | ||
Total indebtedness
|
| | | $ | 269,945 | | | | | $ | | | | | $ | | | ||
Mezzanine equity: | | | | | | | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | | 121,231 | | | | | | | | | | | | | | |
Class D Units
|
| | | | 24,909 | | | | | | | | | | | | | | |
Members’ / Stockholders’ equity: | | | | | | | | | | | | | | | | | | | |
Class A Units
|
| | | | 264,849 | | | | | | | | | | | | | | |
Class B Units
|
| | | | — | | | | | | | | | | | | | | |
Class C Units
|
| | | | — | | | | | | | | | | | | | | |
Class A common stock, par value $0.00001 per share
|
| | | | — | | | | | | | | | | | | | | |
Class B common stock, par value $0.00001 per share
|
| | | | — | | | | | | | | | | | | | | |
Additional paid-in capital
|
| | | | — | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (91,979) | | | | | | | | | | | | | | |
Accumulated other comprehensive loss
|
| | | | (368) | | | | | | | | | | | | | ||
Total members’ equity/shareholders’ equity
|
| | | | 318,642 | | | | | | | | | | | | | | |
Non-controlling interest
|
| | | | — | | | | | | | | | | | | | ||
Total equity
|
| | | | 318,642 | | | | | | | | | | | | | ||
Total capitalization
|
| | | $ | 588,587 | | | | | $ | | | | | $ | | | |
|
Assumed initial public offering price per share
|
| | | | | | | | | $ | | | |
|
Pro forma net tangible book value per share as of March 27, 2021(1)
|
| | | $ | | | | | | | | | |
|
Increase in pro forma net tangible book value per share attributable to new investors
|
| | | $ | | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering(2)
|
| | | | | | | | | $ | | | |
|
Dilution in pro forma as adjusted net tangible book value per share to new investors
|
| | | | | | | | | $ | | | |
| | |
Shares of Class A Common
Stock Purchased |
| |
Total
Consideration |
| |
Average Price
Per Share |
| |||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
Existing stockholders
|
| | | | | | | | | | % | | | | | $ | | | | | | % | | | |
New investors(1)
|
| | | | | | | | | % | | | | | $ | | | | | | % | | | ||
Total
|
| | | | | | | | | % | | | | | $ | | | | | | % | | |
(in thousands, except per share amounts)
|
| |
EWC Ventures
Historical |
| |
Reorganization
Transaction Adjustments |
| |
As Adjusted
Before this Offering |
| |
Adjustments
for this Offering |
| |
European
Wax Center, Inc. Pro Forma |
| |||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales
|
| | | $ | 20,617 | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Royalty fees
|
| | | | 8,850 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketing fees
|
| | | | 4,934 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other revenues
|
| | | | 2,256 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue
|
| | | | 36,657 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 9,931 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 11,066 | | | | |
|
(5)
|
| | | | | | | | | | | | | | | | | | | |
Advertising
|
| | | | 4,884 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 5,138 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses
|
| | | | 31,019 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations
|
| | | | 5,638 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (4,536) | | | | | | | | | | | | | | | | |
|
(1)
|
| | | | | | | |
Income (loss) before income taxes
|
| | | | 1,102 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax (benefit) expense
|
| | | | — | | | | |
|
(2)
|
| | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,102 | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Net income (loss) attributable to non-controlling interest
|
| | | | | | | | |
|
(3)
|
| | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to European Wax Center, Inc.
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | |||||
Pro forma net income (loss) per share data(4)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) per share to Class A common stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average number of Class A
common shares used in computing earnings (loss) per share: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(In thousands, except per share amounts)
|
| |
EWC Ventures
Historical |
| |
Reorganization
Transaction Adjustments |
| |
As Adjusted
Before this Offering |
| |
Adjustments
for this Offering |
| |
European
Wax Center, Inc. Pro Forma |
| |||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales
|
| | | $ | 56,977 | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Royalty fees
|
| | | | 25,674 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketing fees
|
| | | | 13,465 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other revenues
|
| | | | 7,291 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue
|
| | | | 103,407 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 35,508 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 38,997 | | | | |
|
(5)
|
| | | | | | | | | | | | | | | | | | | |
Advertising
|
| | | | 11,495 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 19,582 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss on disposal of assets and non-cancellable contracts
|
| | | | 1,044 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses
|
| | | | 106,626 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from operations
|
| | | | (3,219) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (18,276) | | | | | | | | | | | | | | | | |
|
(1)
|
| | | | | | | |
Income (loss) before income taxes
|
| | | | (21,495) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax (benefit) expense
|
| | | | — | | | | |
|
(2)
|
| | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | (21,495) | | | | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Net income (loss) attributable to non-controlling interest
|
| | | | | | | | |
|
(3)
|
| | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to European Wax Center, Inc.
|
| | | $ | | | | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | | |
Pro forma net income (loss) per share data(4)
|
| | | | | | |||||||||||||||||||||||||
Earnings (loss) per share to Class A common stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average number of Class A
common shares used in computing earnings (loss) per share: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
For the
Thirteen Weeks Ended March 27, 2021 |
| |
For the Year Ended
December 26, 2020 |
| ||||||
Pro forma income (loss) per share of Class A common stock | | | | | | | | | |||||
Numerator: | | | | | | | | | |||||
Pro forma net income (loss) attributable to the Issuer’s Class A common stockholders (basic and diluted)
|
| | | $ | | | | | $ | | | ||
Denominator: | | | | | | | | | |||||
Pro forma weighted average of shares of Class A common stock
outstanding (basic) |
| | | | | | | | |||||
Pro forma weighted average of shares of Class A common stock
outstanding (diluted) |
| | | | | | | | |||||
Pro forma basic income (loss) per share
|
| | | $ | | | | | $ | | | ||
Pro forma diluted income (loss) per share
|
| | | | | | | |
(in thousands, except unit/share amounts)
|
| |
EWC
Ventures Historical |
| |
Reorganization
Transaction Adjustments |
| |
As Adjusted
Before this Offering |
| |
Adjustments
for this Offering |
| |
European
Wax Center, Inc. Pro Forma |
| |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 28,687 | | | | | $ | | | | | $ | | | | | | $ | (1) | | | | | $ | | | ||
Accounts receivable, net
|
| | | | 12,274 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Inventory
|
| | | | 14,654 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | 8,432 | | | | | | | | | | | | | | | | |
|
(4)
|
| | | | | | | |
Advances to related parties
|
| | | | 689 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets
|
| | | | 64,736 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Property and equipment, net
|
| | | | 4,835 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets, net
|
| | | | 216,142 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | | 328,551 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred tax asset
|
| | | | — | | | | |
|
(2)
|
| | | | | | | | | | | | | | | |||||
Other non-current assets
|
| | | | 3,300 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 617,564 | | | | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Liabilities, Mezzanine Equity, and Members'/Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 23,832 | | | | | $ | | | | | $ | | | | | | $ | | | | | $ | | | |||
Long term debt, current portion
|
| | | | 2,428 | | | | | | | | | | | | | | | | |
|
(5)
|
| | | | | | | |
Deferred revenues, current portion
|
| | | | 2,488 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other current liabilities
|
| | | | 181 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current liabilities
|
| | | | 28,929 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long term debt, net
|
| | | | 262,702 | | | | | | | | | | | | | | | | |
|
(5)
|
| | | | | | | |
Deferred revenue, net of current portion
|
| | | | 6,601 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred tax liability
|
| | | | — | | | | |
|
(2)
|
| | | | | |||||||||||||||
Tax receivable agreement liability
|
| | | | — | | | | |
|
(3)
|
| | | | | |||||||||||||||
Other long-term liabilities
|
| | | | 690 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 298,922 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mezzanine equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Founders’ Units (8,309,193 Class A Founders’ Units authorized, issued and
outstanding as of March 27, 2021) |
| | | | 121,231 | | | | |
|
(7)
|
| | | | | | | | | | | | | | | | | | | |
Class D Units (2,500,000 Class D Units authorized, issued and outstanding as of March 27, 2021, aggregate liquidation preference of $27,298 as of March 27,
2021) |
| | | | 24,909 | | | | |
|
(7)
|
| | | | | | | | | | | | | | | | | | | |
Members’/ Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Members’ equity – Class A Units (26,311,170 Class A Units authorized, issued, and
outstanding as of March 27, 2021) |
| | | | 264,849 | | | | |
|
(7)
|
| | | | | | | | | | | | | | | | | | | |
Members’ equity – Class B Units (1 Class B Unit authorized, issued and outstanding
as of March 27, 2021) |
| | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Members’ equity – Class C Units (1,000 Class C Units authorized, issued and outstanding as of March 27, 2021)
|
| | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A common stock ( shares authorized, shares issued and outstanding,
pro forma) |
| | | | — | | | | |
|
(7)
|
| | | | | | | | | |
|
(1)
|
| | | |||||
Class B common stock ( shares authorized, shares issued and outstanding,
pro forma) |
| | | | — | | | | | | | | | | | | | | | | | | | | | | |||||
Additional paid-in capital
|
| | | | — | | | | |
|
(10)
|
| | | | | | | | | |
|
(10)
|
| | | | | | | |
Accumulated deficit
|
| | | | (91,979) | | | |
|
| | | | | | | |
|
| | | | | | | ||||||
Accumulated other comprehensive loss
|
| | | | (368) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noncontrolling interests
|
| | | | — | | | | |
|
(8)
|
| | | | | | | | | |
|
(9)
|
| | | |||||
Total liabilities, mezzanine equity, and members’ / shareholders’ equity
|
| | | $ | 617,564 | | | | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
| | |
As of
March 27, 2021 |
| |||
Reorganization Transaction Adjustments: | | | | | | | |
Net adjustment from recognition of deferred tax asset and Tax Receivable Agreement(2),(3)
|
| | | $ | | | |
Reclassification of mezzanine and members equity to additional paid-in capital as a result of Reorganization Transactions(7)
|
| | | | | | |
Adjustment for noncontrolling interest(8)
|
| | | | | | |
Equity-based compensation expense related to modification of certain pre-IPO equity-based awards in connection to the Reorganization Transactions
|
| | | | | | |
Total Reorganization Transaction Adjustments:
|
| | | $ | | | |
Adjustments for this Offering: | | | | | | | |
Gross proceeds from offering of Class A common stock(1)
|
| | | | | | |
Payment of underwriting discounts and commissions and offering costs in connection with this offering(1)
|
| | | | | | |
Reclassification of costs incurred in this offering from prepaid expenses and other current assets to additional paid-in capital(4)
|
| | | | | | |
Adjustment for noncontrolling interest(9)
|
| | | | | | |
Total Adjustments for this Offering:
|
| | | $ | | |
| | |
Thirteen
Weeks Ended |
| |
Year Ended
|
| ||||||||||||||||||
(in thousands, except operating data and percentages)
|
| |
March 27,
2021 |
| |
March 28,
2020 |
| |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||||||||
Number of system-wide centers (at period end)
|
| | | | 808 | | | | | | 766 | | | | | | 796 | | | | | | 750 | | |
System-wide sales
|
| | | $ | 156,963 | | | | | $ | 158,004 | | | | | $ | 468,764 | | | | | $ | 687,402 | | |
Same-store sales
|
| | | | (6.2)% | | | | | | (5.6)% | | | | | | (35.6)% | | | | | | 9.8% | | |
New center openings
|
| | | | 12 | | | | | | 16 | | | | | | 46 | | | | | | 38 | | |
AUV
|
| | | | | | | | | | | | | | | $ | 606 | | | | | $ | 940 | | |
| | |
For the Thirteen Weeks Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
March 27,
2021 |
| |
March 28,
2020 |
| ||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales
|
| | | $ | 20,617 | | | | | $ | 18,345 | | | | | $ | 2,272 | | | | | | 12.4% | | |
Royalty fees
|
| | | | 8,850 | | | | | | 8,901 | | | | | | (51) | | | | | | -0.6% | | |
Marketing fees
|
| | | | 4,934 | | | | | | 3,559 | | | | | | 1,375 | | | | | | 38.6% | | |
Other revenue
|
| | | | 2,256 | | | | | | 2,018 | | | | | | 238 | | | | | | 11.8% | | |
Total revenue
|
| | | | 36,657 | | | | | | 32,823 | | | | | | 3,834 | | | | | | 11.7% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 9,931 | | | | | | 8,678 | | | | | | 1,253 | | | | | | 14.4% | | |
Selling, general and administrative
|
| | | | 11,066 | | | | | | 10,378 | | | | | | 688 | | | | | | 6.6% | | |
Advertising
|
| | | | 4,884 | | | | | | 3,688 | | | | | | 1,196 | | | | | | 32.4% | | |
Depreciation and amortization
|
| | | | 5,138 | | | | | | 4,898 | | | | | | 240 | | | | | | 4.9% | | |
Total operating expenses
|
| | | | 31,019 | | | | | | 27,642 | | | | | | 3,377 | | | | | | 12.2% | | |
Income from operations
|
| | | | 5,638 | | | | | | 5,181 | | | | | | 457 | | | | | | 8.8% | | |
Interest expense
|
| | | | (4,536) | | | | | | (4,222) | | | | | | (314) | | | | | | 7.4% | | |
Net income
|
| | | $ | 1,102 | | | | | $ | 959 | | | | | $ | 143 | | | | | | 14.9% | | |
| | |
For the Years Ended
|
| | | | | | | | | | | | | |||||||||
| | |
December 26,
2020 |
| |
December 28,
2019 |
| |
$
Change |
| |
%
Change |
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales
|
| | | $ | 56,977 | | | | | $ | 83,620 | | | | | $ | (26,643) | | | | | | -31.9% | | |
Royalty fees
|
| | | | 25,674 | | | | | | 36,737 | | | | | | (11,063) | | | | | | -30.1% | | |
Marketing fees
|
| | | | 13,465 | | | | | | 21,972 | | | | | | (8,507) | | | | | | -38.7% | | |
Other revenue
|
| | | | 7,291 | | | | | | 11,868 | | | | | | (4,577) | | | | | | -38.6% | | |
Total revenue
|
| | | | 103,407 | | | | | | 154,197 | | | | | | (50,790) | | | | | | -32.9% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 35,508 | | | | | | 40,898 | | | | | | (5,390) | | | | | | -13.2% | | |
Selling, general and administrative
|
| | | | 38,997 | | | | | | 64,967 | | | | | | (25,970) | | | | | | -40.0% | | |
Advertising
|
| | | | 11,495 | | | | | | 21,132 | | | | | | (9,637) | | | | | | -45.6% | | |
Depreciation and amortization
|
| | | | 19,582 | | | | | | 15,534 | | | | | | 4,048 | | | | | | 26.1% | | |
Loss on disposal of assets and non-cancellable contracts
|
| | | | 1,044 | | | | | | 4,451 | | | | | | (3,407) | | | | | | -76.5% | | |
Impairment of internally developed software
|
| | | | — | | | | | | 18,183 | | | | | | (18,183) | | | | | | -100.0% | | |
Gain on sale of centers
|
| | | | — | | | | | | (2,120) | | | | | | 2,120 | | | | | | -100.0% | | |
Total operating expenses
|
| | | | 106,626 | | | | | | 163,045 | | | | | | (56,419) | | | | | | -34.6% | | |
Loss from operations
|
| | | | (3,219) | | | | | | (8,848) | | | | | | 5,629 | | | | | | -63.6% | | |
Interest expense
|
| | | | (18,276) | | | | | | (15,548) | | | | | | (2,728) | | | | | | 17.5% | | |
Net loss
|
| | | $ | (21,495) | | | | | $ | (24,396) | | | | | $ | 2,901 | | | | | | -11.9% | | |
| | |
For the Thirteen Weeks Ended
|
| |
For the Years Ended
|
| ||||||||||||||||||
| | |
March 27,
2021 |
| |
March 28,
2020 |
| |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales
|
| | | | 56.2% | | | | | | 55.9% | | | | | | 55.1% | | | | | | 54.2% | | |
Royalty fees
|
| | | | 24.1% | | | | | | 27.1% | | | | | | 24.8% | | | | | | 23.8% | | |
Marketing fees
|
| | | | 13.5% | | | | | | 10.8% | | | | | | 13.0% | | | | | | 14.2% | | |
Other revenue
|
| | | | 6.2% | | | | | | 6.2% | | | | | | 7.1% | | | | | | 7.7% | | |
Total revenue
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 27.1% | | | | | | 26.5% | | | | | | 34.3% | | | | | | 26.5% | | |
Selling, general and administrative
|
| | | | 30.2% | | | | | | 31.6% | | | | | | 37.7% | | | | | | 42.1% | | |
Advertising
|
| | | | 13.3% | | | | | | 11.2% | | | | | | 11.1% | | | | | | 13.7% | | |
Depreciation and amortization
|
| | | | 14.0% | | | | | | 14.9% | | | | | | 18.9% | | | | | | 10.1% | | |
Loss on disposal of assets and non-cancellable contracts
|
| | | | — | | | | | | — | | | | | | 1.0% | | | | | | 2.9% | | |
Impairment of internally developed software
|
| | | | — | | | | | | — | | | | | | — | | | | | | 11.8% | | |
Gain on sale of centers
|
| | | | — | | | | | | — | | | | | | — | | | | | | -1.4% | | |
Total operating expenses
|
| | | | 84.6% | | | | | | 84.2% | | | | | | 103.1% | | | | | | 105.7% | | |
Income (loss) from operations
|
| | | | 15.4% | | | | | | 15.8% | | | | | | -3.1% | | | | | | -5.7% | | |
Interest expense
|
| | | | -12.4% | | | | | | -12.9% | | | | | | -17.7% | | | | | | -10.1% | | |
Net income (loss)
|
| | | | 3.0% | | | | | | 2.9% | | | | | | -20.8% | | | | | | -15.8% | | |
| | |
Thirteen Weeks Ended
|
| |
Years Ended
|
| ||||||||||||||||||
(in thousands)
|
| |
March 27,
2021 |
| |
March 28,
2020 |
| |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||||||||
Net income (loss)
|
| | | $ | 1,102 | | | | | $ | 959 | | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Interest expense
|
| | | | 4,536 | | | | | | 4,222 | | | | | | 18,276 | | | | | | 15,548 | | |
Provision for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Depreciation
|
| | | | 428 | | | | | | 371 | | | | | | 1,649 | | | | | | 2,198 | | |
Amortization
|
| | | | 4,710 | | | | | | 4,527 | | | | | | 17,933 | | | | | | 13,336 | | |
EBITDA
|
| | | $ | 10,776 | | | | | $ | 10,079 | | | | | $ | 16,363 | | | | | $ | 6,686 | | |
Impairment of internally developed software(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 18,183 | | |
Exit costs – lease abandonment(2)
|
| | | | — | | | | | | 159 | | | | | | 159 | | | | | | 778 | | |
Corporate headquarter relocation(3)
|
| | | | — | | | | | | 483 | | | | | | 671 | | | | | | 6,097 | | |
Share-based compensation(4)
|
| | | | 298 | | | | | | 827 | | | | | | 2,052 | | | | | | 1,570 | | |
IPO-related costs(5)
|
| | | | 1,123 | | | | | | — | | | | | | 179 | | | | | | — | | |
Other compensation-related costs(6)
|
| | | | 337 | | | | | | 164 | | | | | | 577 | | | | | | 691 | | |
Adjusted EBITDA
|
| | | $ | 12,534 | | | | | $ | 11,712 | | | | | $ | 20,001 | | | | | $ | 34,005 | | |
| | |
For the Thirteen Weeks Ended
|
| |
For the Years Ended
|
| ||||||||||||||||||
(in thousands)
|
| |
March 27,
2021 |
| |
March 28,
2020 |
| |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||||||||
Net cash (used in) provided by: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | (1,987) | | | | | $ | 1,450 | | | | | $ | 1,397 | | | | | $ | 14,701 | | |
Investing activities
|
| | | | (4,499) | | | | | | (29,512) | | | | | | (36,843) | | | | | | (40,694) | | |
Financing activities
|
| | | | (1,547) | | | | | | 29,706 | | | | | | 61,902 | | | | | | 27,807 | | |
Net (decrease) increase in cash
|
| | | $ | (8,033) | | | | | $ | 1,644 | | | | | $ | 26,456 | | | | | $ | 1,814 | | |
|
•
Increasing consumer interest in personal-care and self-expression;
•
Customer awareness of OOH waxing efficiency and efficacy relative to at-home solutions, and affordability relative to other OOH solutions;
•
OOH waxing services becoming an increasingly non-discretionary and routine part of personal-care and beauty regimens; and
•
Growing geographic reach across and interest from diverse age groups and genders.
|
| |
|
|
Services
|
| |
Description
|
| |
Price Range
|
|
Body / Personal-Care | | ||||||
Arm (Full)
|
| | Entire length of arm. Includes hands and fingers | | |
$41 – $50
|
|
Under Arm
|
| | Includes the under arm | | |
$20 – $28
|
|
Bikini Full
|
| | Includes as much or as little hair as desired from the front of bikini area | | |
$47 – $59
|
|
Bikini Brazilian
|
| | Includes full removal of the bikini area from the front to the back | | |
$54 – $72
|
|
Bikini Line
|
| | Includes four fingers from the natural bikini line and two fingers from the top | | |
$35 – $48
|
|
Leg (Full)
|
| | Upper and lower legs. Includes the knees, feet and toes | | |
$71 – $81
|
|
Leg (Upper)
|
| | Includes the upper legs, inner thighs and knees. Does not include the bikini line | | |
$41 – $52
|
|
Leg (Lower)
|
| | Includes lower legs, knees, feet, and toes | | |
$41 – $51
|
|
Facial / Beauty | | ||||||
Full Face
|
| | Includes the hairline, eyebrows, nose, sideburns, cheeks, upper lip, lower lip, chin, and front of the neck | | |
$56 – $67
|
|
Eyebrow
|
| | Brow shaping that includes a trim, wax and tweeze. Includes filling in the brows with makeup | | |
$18 – $28
|
|
Nose
|
| | Inside of the nostrils | | |
$13 – $17
|
|
Lip
|
| | Hard-to-reach hair around the mouth | | |
$10 – $16
|
|
Chin
|
| | Includes the chin and lower lip | | |
$12 – $16
|
|
| | |
All Centers
|
| |||
System-Wide Average at Maturity (Year 5) | | ||||||
Revenue
|
| | | $ | 1,028 | | |
EBITDA
|
| | | $ | 220 | | |
Cash-on-Cash Returns(1)
|
| |
60%+
|
|
Name
|
| |
Age
|
| |
Position
|
|
David P. Berg
|
| |
60
|
| | Chief Executive Officer and Director | |
Jennifer C. Vanderveldt
|
| |
42
|
| | Chief Financial Officer | |
David L. Willis
|
| |
49
|
| | Chief Operating Officer | |
Gavin M. O’Connor
|
| |
51
|
| | Chief Legal Officer and Corporate Secretary | |
Christopher K. Kobus
|
| |
41
|
| | Chief Experience Officer | |
Jyoti A. Lynch
|
| |
50
|
| | Chief Information Officer | |
Jean M. Grossman
|
| |
56
|
| | Chief Franchise Officer | |
Alexa Bartlett
|
| |
33
|
| | Director | |
Andrew Crawford
|
| |
42
|
| | Director | |
Shaw Joseph
|
| |
39
|
| | Director | |
Dorvin D. Lively
|
| |
63
|
| | Director | |
Laurie Ann Goldman
|
| |
58
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($)(2) |
| |
Stock
Awards ($)(3) |
| |
Non-Equity
Incentive Plan Compensation ($)(4) |
| |
All Other
Compensation ($) |
| |
Total
Compensation ($) |
| |||||||||||||||||||||
David Berg
|
| | | | 2020 | | | | | $ | 675,000 | | | | | | — | | | | | | — | | | | | $ | 161,750 | | | | | $ | 28,484(5) | | | | | $ | 865,234 | | |
Chief Executive Officer | | | | | | | | | |||||||||||||||||||||||||||||||||||
Gavin O’Connor
|
| | | | 2020 | | | | | $ | 335,343 | | | | | $ | 100,000 | | | | | $ | 209,949 | | | | | $ | 56,100 | | | | | $ | 20,583(6) | | | | | $ | 721,975 | | |
Chief Legal Officer & Corporate
Secretary |
| | | | | | | | |||||||||||||||||||||||||||||||||||
Jennifer Vanderveldt
|
| | | | 2020 | | | | | $ | 25,685 | | | | | $ | 100,000 | | | | | $ | 493,368 | | | | | | — | | | | | | — | | | | | $ | 619,053 | | |
Chief Financial Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name(1)
|
| |
Grant Date
|
| |
Number of
Unvested Time-Vesting Class B Units (#) |
| |
Market value
of Unvested Time-Vesting Class B Units ($) |
| |
Number of
Unvested Performance- Vesting Class B Units (#) |
| |
Market value
of Unvested Performance- Vesting Class B Units ($) |
| ||||||||||||
David Berg(2)(3)
|
| |
10/15/18
|
| | | | 644,108 | | | | | $ | 1,083,503 | | | | | | 185,408 | | | | | $ | 72,309 | | |
| | |
12/9/19
|
| | | | — | | | | | | — | | | | | | 376,641 | | | | | $ | 146,890 | | |
Gavin O’Connor(4)(5)
|
| |
1/6/20
|
| | | | 69,560 | | | | | $ | 142,597 | | | | | | 69,839 | | | | | $ | 50,092 | | |
Jennifer Vanderveldt(4)(6)
|
| |
12/7/20
|
| | | | 140,064 | | | | | $ | 392,179 | | | | | | 141,122 | | | | | $ | 101,189 | | |
| | |
Termination
Without Cause |
| |
Termination For
Good Reason |
| |
Termination
Following a Change in Control Constituting a GA Exit |
| |
Change in Control
Constituting a GA Exit |
| ||||||||||||
David Berg | | | | | | | | | | | | | | | | | | | | | | | | | |
Base Salary
|
| | | $ | 675,000 | | | | | $ | 675,000 | | | | | $ | 675,000 | | | | | | — | | |
Bonus Payment
|
| | | $ | 161,750 | | | | | $ | 161,750 | | | | | $ | 161,750 | | | | | | — | | |
COBRA
|
| | | $ | 30,331 | | | | | $ | 30,331 | | | | | $ | 30,331 | | | | | | — | | |
Accrued PTO
|
| | | $ | 70,096 | | | | | $ | 70,096 | | | | | $ | 70,096 | | | | | | — | | |
Equity Awards
|
| | | | — | | | | | | — | | | | | $ | 1,083,503 | | | | | $ | 1,083,503 | | |
Total
|
| | | $ | 937,177 | | | | | $ | 937,177 | | | | | $ | 2,740,680 | | | | | $ | 1,083,503 | | |
Gavin O’Connor | | | | | | | | | | | | | | | | | | | | | | | | | |
Base Salary
|
| | | $ | 340,000 | | | | | $ | 340,000 | | | | | $ | 340,000 | | | | | | — | | |
Bonus Payment
|
| | | $ | 170,000 | | | | | $ | 170,000 | | | | | $ | 170,000 | | | | | | — | | |
COBRA
|
| | | $ | 47,247 | | | | | $ | 47,247 | | | | | $ | 47,247 | | | | | | — | | |
Accrued PTO
|
| | | $ | 35,308 | | | | | $ | 35,308 | | | | | $ | 35,308 | | | | | | — | | |
Equity Awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 592,555 | | | | | $ | 592,555 | | | | | $ | 592,555 | | | | | | — | | |
Jennifer Vanderveldt | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Termination
Without Cause |
| |
Termination For
Good Reason |
| |
Termination
Following a Change in Control Constituting a GA Exit |
| |
Change in Control
Constituting a GA Exit |
| ||||||||||||
Base Salary
|
| | | $ | 375,000 | | | | | $ | 375,000 | | | | | $ | 375,000 | | | | | | — | | |
Bonus Payment
|
| | | $ | 187,500 | | | | | $ | 187,500 | | | | | $ | 187,500 | | | | | | — | | |
COBRA
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accrued PTO
|
| | | $ | 38,942 | | | | | $ | 38,942 | | | | | $ | 38,942 | | | | | | — | | |
Equity Awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 601,442 | | | | | $ | 601,442 | | | | | $ | 601,442 | | | | | | — | | |
| | |
Class A Common
Stock Owned After Giving Effect to the Reorganization Transactions and Before this Offering (on a fully exchanged and converted basis)(1) |
| |
Shares of
Class A Common Stock Being Offered (no option)(2) |
| |
Class A Common
Stock Owned After Giving Effect to the Reorganization Transactions and this Offering (on a fully exchanged and converted basis)(1) |
| |
Voting Power(3)
|
| |||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| |
Before this
Offering Percentage |
| |
After this
Offering Percentage |
| |||
5% Equityholders | | | | | | | | | | | | | | | | | | | | | ||
General Atlantic Equityholders(4)
|
| | | | | | | | | | | | | | | | | | | | ||
EWC Founder Holdco(5)
|
| | | | | | | | | | | | | | | | | | | | ||
EWC Management Holdco(6)
|
| | | | | | | | | | | | | | | | | | | | ||
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | ||
David P. Berg(7)
|
| | | | | | | | | | | | | | | | | | | | ||
Jennifer C. Vanderveldt(7)
|
| | | | | | | | | | | | | | | | | | | | ||
Gavin M. O’Connor(7)
|
| | | | | | | | | | | | | | | | | | | | ||
Alexa Bartlett
|
| | | | | | | | | | | | | | | | | | | | ||
Andrew Crawford
|
| | | | | | | | | | | | | | | | | | | | ||
Shaw Joseph
|
| | | | | | | | | | | | | | | | | | | | ||
Dorvin D. Lively
|
| | | | | | | | | | | | | | | | | | | | ||
Laurie Ann Goldman
|
| | | | | | | | | | | | | | | | | | | | ||
All directors and executive officers as a group (12 persons)(7)
|
| | | | | | | | | | | | | | | | | | | |
| | |
Class A Common
Stock Owned After Giving Effect to the Reorganization Transactions and Before this Offering (on a fully exchanged and converted basis)(1) |
| |
Shares of
Class A Common Stock Being Offered (with option)(2) |
| |
Class A Common
Stock Owned After Giving Effect to the Reorganization Transactions and this Offering (on a fully exchanged and converted basis)(1) |
| |
Voting Power(3)
|
| |||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| |
Before this
Offering Percentage |
| |
After this
Offering Percentage |
| |||
5% Equityholders | | | | | | | | | | | | | | | | | | | | | ||
General Atlantic Equityholders(4)
|
| | | | | | | | | | | | | | | | | | | | ||
EWC Founder Holdco (5)
|
| | | | | | | | | | | | | | | | | | | | ||
EWC Management Holdco(6)
|
| | | | | | | | | | | | | | | | | | | | ||
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | ||
David P. Berg(7)
|
| | | | | | | | | | | | | | | | | | | | ||
Jennifer C. Vanderveldt(7)
|
| | | | | | | | | | | | | | | | | | | | ||
Gavin M. O’Connor(7)
|
| | | | | | | | | | | | | | | | | | | | ||
Alexa Bartlett
|
| | | | | | | | | | | | | | | | | | | | ||
Andrew Crawford
|
| | | | | | | | | | | | | | | | | | | | ||
Shaw Joseph
|
| | | | | | | | | | | | | | | | | | | | ||
Dorvin D. Lively
|
| | | | | | | | | | | | | | | | | | | | ||
Laurie Ann Goldman
|
| | | | | | | | | | | | | | | | | | | | ||
All directors and executive officers as a group (12 persons)(7)
|
| | | | | | | | | | | | | | | | | | | |
Name
|
| |
EWC Ventures
Units to be Issued in the Reorganization Transactions |
| |
Class A Common
Stock to be Issued in the Reorganization Transactions |
| |
Class B Common
Stock to be Issued in the Reorganization Transactions |
|
General Atlantic Equityholders
|
| | | | | | | | | |
EWC Founder Holdco
|
| | | | | | | | | |
EWC Management Holdco(1)
|
| | | | | | | | | |
David P. Berg
|
| | | | | | | | | |
Jennifer C. Vanderveldt
|
| | | | | | | | | |
David L. Willis
|
| | | | ||||||
Gavin M. O’Connor
|
| | | | | | | | | |
Christopher K. Kobus
|
| | | | ||||||
Jyoti A. Lynch
|
| | | | ||||||
Jean M. Grossman
|
| | | |
Name
|
| |
Number of EWC
Ventures Units and corresponding shares of our Class B common stock to be sold to us (no option) |
| |
Cash
proceeds (no option) ($) |
| |
Number of EWC Ventures
Units and corresponding shares of our Class B common stock to be sold to us (with option) |
| |
Cash proceeds
(with option) ($) |
|
General Atlantic Equityholders
|
| | | | | | | | | | | | |
EWC Founder Holdco
|
| | | | | | | | | | | | |
Underwriter
|
| |
Number of Shares
|
| |||
Morgan Stanley & Co. LLC
|
| | | | | | |
BofA Securities, Inc.
|
| | | | | | |
Jefferies LLC
|
| | | | | | |
Citigroup Global Markets Inc.
|
| | | | | | |
Guggenheim Securities LLC
|
| | | | | | |
Truist Securities, Inc.
|
| | | | | | |
Total
|
| | | | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per Share
|
| |
No Exercise
|
| |
Full Exercise
|
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions to be paid by Us
|
| | | $ | | | | | $ | | | | | $ | | | |||
The selling stockholders
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to selling stockholders
|
| | | $ | | | | | $ | | | | | $ | | | |
| | |
Page
|
| |||
European Wax Center, Inc. | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
EWC Ventures and its Subsidiaries (Predecessor) | | | | | | | |
Audited Consolidated Financial Statements | | | | | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | | |
| | | | F-10 | | | |
Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | F-34 | | | |
| | | | F-35 | | | |
| | | | F-36 | | | |
| | | | F-37 | | | |
| | | | F-38 | | |
| | |
April 1, 2021
|
| |||
Cash
|
| | | $ | 100 | | |
Assets | | | | $ | 100 | | |
Stockholder’s equity | | | | | | | |
Common stock, par value $0.00001 per share, 1,000 shares authorized, 100 shares outstanding
|
| | | $ | 0 | | |
Additional paid-in capital
|
| | | | 100 | | |
Total stockholder’s equity
|
| | | $ | 100 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| | | ||||||||||
ASSETS | | | | | | | | ||||||||||||
Current assets: | | | | | | | | | | | | | | | | ||||
Cash and cash equivalents
|
| | | $ | 36,720 | | | | | $ | 10,264 | | | | | ||||
Accounts receivable, net
|
| | | | 5,070 | | | | | | 6,791 | | | | | ||||
Inventory
|
| | | | 10,280 | | | | | | 22,037 | | | | | ||||
Prepaid expenses and other current assets
|
| | | | 4,574 | | | | | | 2,084 | | | | | ||||
Advances to related parties
|
| | | | 689 | | | | | | 811 | | | | | ||||
Total current assets
|
| | | | 57,333 | | | | | | 41,987 | | | | | ||||
Property and equipment, net
|
| | | | 5,039 | | | | | | 4,456 | | | | | ||||
Intangible assets, net
|
| | | | 213,267 | | | | | | 198,410 | | | | | ||||
Goodwill
|
| | | | 328,551 | | | | | | 328,551 | | | | | ||||
Other non-current assets
|
| | | | 2,710 | | | | | | 3,075 | | | | | ||||
Total assets
|
| | | $ | 606,900 | | | | | $ | 576,479 | | | | | ||||
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS’ EQUITY | | | | ||||||||||||||||
Current liabilities: | | | | | | | | | | | | | | | | ||||
Accounts payable and accrued liabilities
|
| | | $ | 13,489 | | | | | $ | 25,053 | | | | | ||||
Long-term debt, current portion
|
| | | | 2,428 | | | | | | 2,285 | | | | | ||||
Deferred revenue, current portion
|
| | | | 2,351 | | | | | | 2,458 | | | | | ||||
Other current liabilities
|
| | | | 181 | | | | | | 179 | | | | | ||||
Total current liabilities
|
| | | | 18,449 | | | | | | 29,975 | | | | | ||||
Long-term debt, net
|
| | | | 262,975 | | | | | | 222,994 | | | | | ||||
Deferred revenue, net of current portion
|
| | | | 6,528 | | | | | | 6,799 | | | | | ||||
Other long-term liabilities
|
| | | | 925 | | | | | | 2,393 | | | | | ||||
Total liabilities
|
| | | | 288,877 | | | | | | 262,161 | | | | | ||||
Commitments and contingencies (Note 12) | | | | | | | | | | | | | | | | ||||
Mezzanine equity: | | | | | | | | | | | | | | | | ||||
Class A Founders’ Units (8,309,193 Class A Founders’ Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019)
|
| | | | 89,240 | | | | | | 104,280 | | | | | ||||
Class D Units (2,500,000 and 0 Class D Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019, respectively; aggregate liquidation preference of $26,670 and 0 as of December 26, 2020 and December 28, 2019, respectively)
|
| | | | 24,909 | | | | | | — | | | | | ||||
Members’ equity: | | | | | | | | | | | | | | | | ||||
Class A Units (26,401,089 Class A Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019)
|
| | | | 265,791 | | | | | | 265,791 | | | | | ||||
Class B Unit (1 Class B Unit authorized, issued and outstanding as of December 26, 2020 and December 28, 2019)
|
| | | | — | | | | | | — | | | | | ||||
Class C Units (1,000 Class C Units authorized, issued and outstanding as of December 26, 2020 and December 28, 2019)
|
| | | | — | | | | | | — | | | | | ||||
Additional paid-in capital
|
| | | | 83 | | | | | | — | | | | | ||||
Accumulated deficit
|
| | | | (61,473) | | | | | | (55,018) | | | | | ||||
Accumulated other comprehensive loss
|
| | | | (527) | | | | | | (735) | | | | | ||||
Total liabilities, mezzanine equity, and members’ equity
|
| | | $ | 606,900 | | | | | $ | 576,479 | | | | |
| | |
For the Years Ended
|
| |||||||||
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
REVENUE | | | | | | | | | | | | | |
Product sales
|
| | | $ | 56,977 | | | | | $ | 83,620 | | |
Royalty fees
|
| | | | 25,674 | | | | | | 36,737 | | |
Marketing fees
|
| | | | 13,465 | | | | | | 21,972 | | |
Other revenue
|
| | | | 7,291 | | | | | | 11,868 | | |
Total revenue
|
| | | | 103,407 | | | | | | 154,197 | | |
OPERATING EXPENSES | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 35,508 | | | | | | 40,898 | | |
Selling, general and administrative(1)
|
| | | | 38,997 | | | | | | 64,967 | | |
Advertising
|
| | | | 11,495 | | | | | | 21,132 | | |
Depreciation and amortization
|
| | | | 19,582 | | | | | | 15,534 | | |
Loss on disposal of assets and non-cancellable contracts
|
| | | | 1,044 | | | | | | 4,451 | | |
Impairment of internally developed software
|
| | | | — | | | | | | 18,183 | | |
Gain on sale of centers
|
| | | | — | | | | | | (2,120) | | |
Total operating expenses
|
| | | | 106,626 | | | | | | 163,045 | | |
Loss from operations
|
| | | | (3,219) | | | | | | (8,848) | | |
Interest expense
|
| | | | (18,276) | | | | | | (15,548) | | |
NET LOSS | | | | $ | (21,495) | | | | | $ | (24,396) | | |
Items included in other comprehensive loss: | | | | | | | | | | | | | |
Unrealized gain (loss) on cash flow hedge
|
| | | | 208 | | | | | | (405) | | |
TOTAL COMPREHENSIVE LOSS
|
| | | $ | (21,287) | | | | | $ | (24,801) | | |
Basic and diluted net loss per unit | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | (0.67) | | | | | $ | (0.70) | | |
Class A Units
|
| | | $ | (0.67) | | | | | $ | (0.70) | | |
Weighted average units outstanding | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units
|
| | | | 26,401,089 | | | | | | 26,401,089 | | |
|
| ||||||||||||
(1) Includes the following amounts paid to related parties, see Note 17
|
| | | $ | 200 | | | | | $ | 200 | | |
| | |
For the Years Ended
|
| |||||||||
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (21,495) | | | | | $ | (24,396) | | |
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 19,582 | | | | | | 15,534 | | |
Impairment of internally developed software
|
| | | | — | | | | | | 18,183 | | |
Loss on noncancellable contracts
|
| | | | 1,085 | | | | | | 2,532 | | |
(Gain) loss on disposal of property and equipment
|
| | | | (41) | | | | | | 1,920 | | |
Amortization of deferred financing costs
|
| | | | 1,284 | | | | | | 1,138 | | |
Loss on write down of obsolete inventory
|
| | | | 6,656 | | | | | | 552 | | |
Gain on sale of centers
|
| | | | — | | | | | | (2,120) | | |
Equity compensation
|
| | | | 2,052 | | | | | | 1,570 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 1,721 | | | | | | 1,096 | | |
Inventory
|
| | | | 5,101 | | | | | | (5,355) | | |
Prepaid expenses and other assets
|
| | | | (2,124) | | | | | | (435) | | |
Accounts payable and accrued liabilities
|
| | | | (10,499) | | | | | | 2,076 | | |
Deferred revenue
|
| | | | (666) | | | | | | 1,250 | | |
Other long-term liabilities
|
| | | | (1,259) | | | | | | 1,156 | | |
Net cash provided by operating activities
|
| | | | 1,397 | | | | | | 14,701 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (2,158) | | | | | | (9,343) | | |
Reacquisition of area representative rights
|
| | | | (34,685) | | | | | | (33,189) | | |
Cash received for sale of centers
|
| | | | — | | | | | | 1,838 | | |
Net cash used in investing activities
|
| | | | (36,843) | | | | | | (40,694) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds on long-term debt
|
| | | | 15,000 | | | | | | 40,000 | | |
Principal payments on long-term debt
|
| | | | (2,397) | | | | | | (2,050) | | |
Proceeds on line of credit
|
| | | | 27,000 | | | | | | — | | |
Payments on line of credit
|
| | | | — | | | | | | (3,500) | | |
Deferred loan costs
|
| | | | (763) | | | | | | (638) | | |
Contributions from members
|
| | | | 24,909 | | | | | | — | | |
Distributions to members
|
| | | | (1,847) | | | | | | (5,194) | | |
Advances to related parties, net
|
| | | | — | | | | | | (811) | | |
Net cash provided by financing activities
|
| | | | 61,902 | | | | | | 27,807 | | |
Net increase in cash
|
| | | | 26,456 | | | | | | 1,814 | | |
Cash, beginning of period
|
| | | | 10,264 | | | | | | 8,450 | | |
Cash, end of period
|
| | | $ | 36,720 | | | | | $ | 10,264 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 16,469 | | | | | $ | 17,342 | | |
Non-cash investing activities: | | | | | | | | | | | | | |
Property purchased included in accounts payable and accrued liabilities
|
| | | $ | 33 | | | | | $ | 148 | | |
Reacquired rights purchased included in accounts payable and accrued liabilities
|
| | | $ | — | | | | | $ | 2,183 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Non-cash equity distributions
|
| | | $ | 122 | | | | | $ | — | | |
| | |
MEZZANINE EQUITY
|
| | |
MEMBERS’ EQUITY
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive loss |
| |
Total
members’ equity |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Class A Founders’ Units
|
| |
Class D Units
|
| | |
Class A Units
|
| |
Class B Units
|
| |
Class C Units
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 29, 2018
|
| | | | 8,309,193 | | | | | $ | 83,652 | | | | | | — | | | | | $ | — | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (6,170) | | | | | $ | (330) | | | | | $ | 259,291 | | |
Equity compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,570 | | | | | | — | | | | | | — | | | | | | 1,570 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,570) | | | | | | (3,624) | | | | | | — | | | | | | (5,194) | | |
Unrealized loss on cash flow hedge
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (405) | | | | | | (405) | | |
Cumulative impact of ASC 606 adoption
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (200) | | | | | | — | | | | | | (200) | | |
Accretion of Class A Founders’
Units to redemption value |
| | | | — | | | | | | 20,628 | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (20,628) | | | | | | — | | | | | | (20,628) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,396) | | | | | | — | | | | | | (24,396) | | |
Balance at December 28, 2019
|
| | | | 8,309,193 | | | | | $ | 104,280 | | | | | | — | | | | | $ | — | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (55,018) | | | | | $ | (735) | | | | | $ | 210,038 | | |
Equity compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,052 | | | | | | — | | | | | | — | | | | | | 2,052 | | |
Contributions from members, net
of issuance costs of $91 |
| | | | — | | | | | | — | | | | | | 2,500,000 | | | | | | 24,909 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,969) | | | | | | — | | | | | | — | | | | | | (1,969) | | |
Unrealized gain on cash flow hedge
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 208 | | | | | | 208 | | |
Accretion of Class A Founders’
Units to redemption value |
| | | | — | | | | | | (15,040) | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,040 | | | | | | — | | | | | | 15,040 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (21,495) | | | | | | — | | | | | | (21,495) | | |
Balance at December 26, 2020
|
| | | | 8,309,193 | | | | | $ | 89,240 | | | | | | 2,500,000 | | | | | $ | 24,909 | | | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | 83 | | | | | $ | (61,473) | | | | | $ | (527) | | | | | $ | 203,874 | | |
|
Computer and other equipment
|
| |
3 – 5 years
|
|
|
Computer software
|
| |
4 – 7 years
|
|
|
Furniture and fixtures
|
| |
3 – 7 years
|
|
|
Leasehold improvements
|
| |
Lesser of the estimated useful life or the remaining lease term.
|
|
| | |
Fair
Market Value |
| |
Quoted prices
in active markets for identical assets (Level 1) |
| |
Significant
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Change in fair
value included in comprehensive income |
| |||||||||||||||
Interest rate cap | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
December 26, 2020
|
| | | $ | (527) | | | | | $ | — | | | | | $ | (527) | | | | | $ | — | | | | | $ | 208 | | |
December 28, 2019
|
| | | $ | (735) | | | | | $ | — | | | | | $ | (735) | | | | | $ | — | | | | | $ | (405) | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Prepaid inventory
|
| | | $ | 2,000 | | | | | $ | — | | |
Prepaid other & other current assets
|
| | | | 2,574 | | | | | | 2,084 | | |
Total
|
| | | $ | 4,574 | | | | | $ | 2,084 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Balance beginning of year
|
| | | $ | 1,229 | | | | | $ | 1,042 | | |
Charged to costs and expenses
|
| | | | 6,656 | | | | | | 552 | | |
Write-offs of reserved inventory
|
| | | | (1,286) | | | | | | (365) | | |
Balance end of year
|
| | | $ | 6,599 | | | | | $ | 1,229 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Computer and other equipment
|
| | | $ | 487 | | | | | $ | 184 | | |
Computer software
|
| | | | 8,700 | | | | | | 6,653 | | |
Furniture and fixtures
|
| | | | 974 | | | | | | 1,124 | | |
Leasehold improvements
|
| | | | 2,433 | | | | | | 2,702 | | |
| | | | | 12,594 | | | | | | 10,663 | | |
Less: accumulated depreciation and amortization
|
| | | | (7,645) | | | | | | (6,377) | | |
| | | | | 4,949 | | | | | | 4,286 | | |
Construction-in-process
|
| | | | — | | | | | | 125 | | |
Software implementation-in-process
|
| | | | 90 | | | | | | 45 | | |
Total property and equipment, net
|
| | | $ | 5,039 | | | | | $ | 4,456 | | |
| | |
December 26, 2020
|
| |||||||||||||||||||||
| | |
Weighted Average
Remaining Useful Life (Years) |
| |
Gross
Carrying Value |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||
Franchisee relationships
|
| | | | 7.74 | | | | | $ | 114,594 | | | | | $ | (25,870) | | | | | $ | 88,724 | | |
Reacquired rights
|
| | | | 9.19 | | | | | | 68,973 | | | | | | (8,304) | | | | | | 60,669 | | |
Favorable lease assets
|
| | | | 1.24 | | | | | | 170 | | | | | | (110) | | | | | | 60 | | |
| | | | | | | | | | | 183,737 | | | | | | (34,284) | | | | | | 149,453 | | |
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name
|
| | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets
|
| | | | | | | | | $ | 247,551 | | | | | $ | (34,284) | | | | | $ | 213,267 | | |
Goodwill
|
| | | | | | | | | $ | 328,551 | | | | | $ | — | | | | | $ | 328,551 | | |
| | |
December 28, 2019
|
| |||||||||||||||||||||
| | |
Weighted Average
Remaining Useful Life (Years) |
| |
Gross
Carrying Value |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||
Franchisee relationships
|
| | | | 8.74 | | | | | $ | 114,594 | | | | | $ | (14,442) | | | | | $ | 100,152 | | |
Reacquired rights
|
| | | | 9.92 | | | | | | 36,182 | | | | | | (1,847) | | | | | | 34,335 | | |
Favorable lease assets
|
| | | | 2.24 | | | | | | 170 | | | | | | (61) | | | | | | 109 | | |
| | | | | | | | | | | 150,946 | | | | | | (16,350) | | | | | | 134,596 | | |
| | |
December 28, 2019
|
| |||||||||||||||||||||
| | |
Weighted Average
Remaining Useful Life (Years) |
| |
Gross
Carrying Value |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name
|
| | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets
|
| | | | | | | | | $ | 214,760 | | | | | $ | (16,350) | | | | | $ | 198,410 | | |
Goodwill
|
| | | | | | | | | $ | 328,551 | | | | | $ | — | | | | | $ | 328,551 | | |
|
| | | | | |||||||||||||||
Fiscal Years Ending
|
| |
Franchisee
Relationships |
| |
Reacquired
Rights |
| |
Favorable
Lease Assets |
| |||||||||
2021
|
| | | $ | 11,428 | | | | | $ | 6,555 | | | | | $ | 48 | | |
2022
|
| | | | 11,428 | | | | | | 6,555 | | | | | | 12 | | |
2023
|
| | | | 11,428 | | | | | | 6,555 | | | | | | — | | |
2024
|
| | | | 11,428 | | | | | | 6,555 | | | | | | — | | |
2025
|
| | | | 11,428 | | | | | | 6,555 | | | | | | — | | |
Thereafter
|
| | | | 31,584 | | | | | | 27,894 | | | | | | — | | |
Total
|
| | | $ | 88,724 | | | | | $ | 60,669 | | | | | $ | 60 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Accounts payable
|
| | | $ | 615 | | | | | $ | 3,838 | | |
Accrued inventory
|
| | | | 3,321 | | | | | | 906 | | |
Accrued compensation
|
| | | | 2,169 | | | | | | 5,679 | | |
Accrued taxes and penalties
|
| | | | 1,732 | | | | | | 1,708 | | |
Accrued lease termination costs
|
| | | | 360 | | | | | | 272 | | |
Accrued technology and subscription fees
|
| | | | 1,536 | | | | | | 2,233 | | |
Accrued interest
|
| | | | 1,440 | | | | | | 1,305 | | |
Accrued insurance settlement liability
|
| | | | — | | | | | | 2,100 | | |
Accrued AR development rights holdback liability
|
| | | | — | | | | | | 2,183 | | |
Other accrued liabilities
|
| | | | 2,316 | | | | | | 4,829 | | |
Total Accounts payable and accrued liabilities
|
| | | $ | 13,489 | | | | | $ | 25,053 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Term Loan
|
| | | $ | 240,552 | | | | | $ | 227,956 | | |
Revolving Credit Facility
|
| | | | 30,000 | | | | | | 3,000 | | |
Less: current portion
|
| | | | (2,428) | | | | | | (2,285) | | |
Total long-term debt
|
| | | | 268,124 | | | | | | 228,671 | | |
Less: unamortized deferred financing costs
|
| | | | (5,149) | | | | | | (5,677) | | |
Total long-term debt, net
|
| | | $ | 262,975 | | | | | $ | 222,994 | | |
Fiscal Years Ending
|
| |
Amount
|
| |||
2021
|
| | | $ | 2,428 | | |
2022
|
| | | | 2,428 | | |
2023
|
| | | | 2,428 | | |
2024
|
| | | | 233,268 | | |
Total principal
|
| | | | 240,552 | | |
Less: unamortized debt discount
|
| | | | (5,149) | | |
Total debt, net
|
| | | $ | 235,403 | | |
| | |
Balance Sheet Classification
|
| |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Derivatives designated as hedging instruments:
|
| | | | | | | | | | | | | | | |
Interest rate cap, non-current portion
|
| |
Other non-current assets
|
| | | $ | — | | | | | $ | 90 | | |
Interest rate cap, current portion
|
| | Other current liabilities | | | | | (181) | | | | | | (180) | | |
Interest rate cap, non-current portion
|
| |
Other long-term liabilities
|
| | | | (346) | | | | | | (645) | | |
Total derivative liabilities designated as hedging instruments
|
| | | | | | $ | (527) | | | | | $ | (735) | | |
Fiscal Years Ending
|
| |
Amount
|
| |||
2021
|
| | | $ | 2,398 | | |
2022
|
| | | | 2,166 | | |
2023
|
| | | | 1,573 | | |
2024
|
| | | | 1,429 | | |
2025
|
| | | | 1,212 | | |
Thereafter
|
| | | | 2,180 | | |
Total
|
| | | $ | 10,958 | | |
| | |
Exit Cost
Obligation – Leases |
| |||
Exit cost obligation at cease-use date in fiscal 2019
|
| | | $ | 778 | | |
Exit cost obligation at December 28, 2019
|
| | | $ | 778 | | |
Additional exit cost obligation at cease-use date in fiscal 2020
|
| | | | 159 | | |
Accretion during fiscal year 2020
|
| | | | 11 | | |
Net payments made during fiscal year 2020
|
| | | | (333) | | |
Exit cost obligation at December 26, 2020
|
| | | $ | 615 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Accounts payable and accrued liabilities
|
| | | $ | 360 | | | | | $ | 272 | | |
Other long-term liabilities
|
| | | | 255 | | | | | | 506 | | |
Total exit cost obligation
|
| | | $ | 615 | | | | | $ | 778 | | |
| | |
December 26,
2020 |
| |
December 28,
2019 |
| ||||||
Term
|
| | | | 2.2 | | | | | | 3.1 | | |
Risk-free Rate
|
| | | | 0.6% | | | | | | 2.2% | | |
Volatility
|
| | | | 46% | | | | | | 34% | | |
Dividend yield
|
| | | | — | | | | | | — | | |
| | |
Units
|
| |
Weighted average
grant date fair value |
| ||||||
Unvested outstanding, December 28, 2019
|
| | | | 2,352,292 | | | | | $ | 2.57 | | |
Granted
|
| | | | 244,371 | | | | | | 2.63 | | |
Vested
|
| | | | (652,079) | | | | | | 2.26 | | |
Forfeited
|
| | | | (108,715) | | | | | | 2.28 | | |
Unvested outstanding, December 26, 2020
|
| | | | 1,835,869 | | | | | $ | 2.70 | | |
Vested as of December 26, 2020
|
| | | | 652,079 | | | | | $ | 2.26 | | |
| | |
Units
|
| |
Weighted average
grant date fair value |
| ||||||
Unvested outstanding, December 28, 2019
|
| | | | 1,568,704 | | | | | $ | 0.38 | | |
Granted
|
| | | | 245,774 | | | | | | 0.68 | | |
Vested
|
| | | | — | | | | | | — | | |
Forfeited
|
| | | | (96,167) | | | | | | 0.33 | | |
Unvested outstanding, December 28, 2019
|
| | | | 1,718,311 | | | | | $ | 0.49 | | |
Vested as of December 26, 2020
|
| | | | — | | | | | | — | | |
| | |
Contract liabilities
|
| |||
Balance at December 29, 2018
|
| | | $ | 8,179 | | |
Revenue recognized that was included in the contract liability at the beginning of the year
|
| | | | (3,408) | | |
Increase, excluding amounts recognized as revenue during the period
|
| | | | 4,486 | | |
Balance at December 28, 2019
|
| | | $ | 9,257 | | |
Revenue recognized that was included in the contract liability at the beginning of the year
|
| | | | (2,461) | | |
Increase, excluding amounts recognized as revenue during the period
|
| | | | 2,083 | | |
Balance at December 26, 2020
|
| | | $ | 8,879 | | |
Contract liabilities to be recognized in:
|
| |
Amount
|
| |||
2021
|
| | | $ | 2,351 | | |
2022
|
| | | | 1,004 | | |
2023
|
| | | | 974 | | |
2024
|
| | | | 914 | | |
2025
|
| | | | 844 | | |
Thereafter
|
| | | | 2,792 | | |
Total
|
| | | $ | 8,879 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Franchise fees
|
| | | $ | 7,542 | | | | | $ | 7,657 | | |
Service revenue
|
| | | | 1,337 | | | | | | 1,600 | | |
Total deferred revenue
|
| | | | 8,879 | | | | | | 9,257 | | |
Long-term portion of deferred revenue
|
| | | | 6,528 | | | | | | 6,799 | | |
Current portion of deferred revenue
|
| | | $ | 2,351 | | | | | $ | 2,458 | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Net loss
|
| | | $ | (21,495) | | | | | $ | (24,396) | | |
Less: preferred return on Class D Units
|
| | | | (1,670) | | | | | | — | | |
Net loss applicable to common unitholders
|
| | | $ | (23,165) | | | | | $ | (24,396) | | |
Net loss applicable by class of common units | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | (5,545) | | | | | $ | (5,840) | | |
| | |
December 26, 2020
|
| |
December 28, 2019
|
| ||||||
Class A Units
|
| | | | (17,620) | | | | | | (18,556) | | |
Net loss applicable to common unitholders
|
| | | $ | (23,165) | | | | | $ | (24,396) | | |
Weighted average outstanding units | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units
|
| | | | 26,401,089 | | | | | | 26,401,089 | | |
Basic and diluted net loss per unit applicable to unitholders: | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | (0.67) | | | | | $ | (0.70) | | |
Class A Units
|
| | | $ | (0.67) | | | | | $ | (0.70) | | |
| | |
March 27,
2021 |
| |
December 26,
2020 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 28,687 | | | | | $ | 36,720 | | |
Accounts receivable, net
|
| | | | 12,274 | | | | | | 5,070 | | |
Inventory
|
| | | | 14,654 | | | | | | 10,280 | | |
Prepaid expenses and other current assets
|
| | | | 8,432 | | | | | | 4,574 | | |
Advances to related parties
|
| | | | 689 | | | | | | 689 | | |
Total current assets
|
| | | | 64,736 | | | | | | 57,333 | | |
Property and equipment, net
|
| | | | 4,835 | | | | | | 5,039 | | |
Intangible assets, net
|
| | | | 216,142 | | | | | | 213,267 | | |
Goodwill
|
| | | | 328,551 | | | | | | 328,551 | | |
Other non-current assets
|
| | | | 3,300 | | | | | | 2,710 | | |
Total assets
|
| | | $ | 617,564 | | | | | $ | 606,900 | | |
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 23,832 | | | | | $ | 13,489 | | |
Long-term debt, current portion
|
| | | | 2,428 | | | | | | 2,428 | | |
Deferred revenue, current portion
|
| | | | 2,488 | | | | | | 2,351 | | |
Other current liabilities
|
| | | | 181 | | | | | | 181 | | |
Total current liabilities
|
| | | | 28,929 | | | | | | 18,449 | | |
Long-term debt, net
|
| | | | 262,702 | | | | | | 262,975 | | |
Deferred revenue, net of current portion
|
| | | | 6,601 | | | | | | 6,528 | | |
Other long-term liabilities
|
| | | | 690 | | | | | | 925 | | |
Total liabilities
|
| | | | 298,922 | | | | | | 288,877 | | |
Commitments and contingencies (Note 9) | | | | | | | | | | | | | |
Mezzanine equity: | | | | | | | | | | | | | |
Class A Founders’ Units (8,309,193 Class A Founders’ Units authorized, issued
and outstanding as of March 27, 2021 and December 26, 2020) |
| | | | 121,231 | | | | | | 89,240 | | |
Class D Units (2,500,000 Class D Units authorized, issued and outstanding as of March 27, 2021 and December 26, 2020; aggregate liquidation preference of $27,298 and $26,670 as of March 27, 2021 and December 26, 2020, respectively)
|
| | | | 24,909 | | | | | | 24,909 | | |
Members’ equity: | | | | | | | | | | | | | |
Class A Units (26,311,170 and 26,401,089 Class A Units authorized, issued and
outstanding as of March 27, 2021 and December 26, 2020) |
| | | | 264,849 | | | | | | 265,791 | | |
Class B Unit (1 Class B Unit authorized, issued and outstanding as of March 27, 2021 and December 26, 2020)
|
| | | | — | | | | | | — | | |
Class C Units (1,000 Class C Units authorized, issued and outstanding as of March 27, 2021 and December 26, 2020)
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | — | | | | | | 83 | | |
Accumulated deficit
|
| | | | (91,979) | | | | | | (61,473) | | |
Accumulated other comprehensive loss
|
| | | | (368) | | | | | | (527) | | |
Total liabilities, mezzanine equity, and members’ equity
|
| | | $ | 617,564 | | | | | $ | 606,900 | | |
| | |
For the 13 Weeks Ended
|
| |||||||||
|
March 27, 2021
|
| |
March 28, 2020
|
| ||||||||
REVENUE | | | | | | | | | | | | | |
Product sales
|
| | | $ | 20,617 | | | | | $ | 18,345 | | |
Royalty fees
|
| | | | 8,850 | | | | | | 8,901 | | |
Marketing fees
|
| | | | 4,934 | | | | | | 3,559 | | |
Other revenue
|
| | | | 2,256 | | | | | | 2,018 | | |
Total revenue
|
| | | | 36,657 | | | | | | 32,823 | | |
OPERATING EXPENSES | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 9,931 | | | | | | 8,678 | | |
Selling, general and administrative(1)
|
| | | | 11,066 | | | | | | 10,378 | | |
Advertising
|
| | | | 4,884 | | | | | | 3,688 | | |
Depreciation and amortization
|
| | | | 5,138 | | | | | | 4,898 | | |
Total operating expenses
|
| | | | 31,019 | | | | | | 27,642 | | |
Income from operations
|
| | | | 5,638 | | | | | | 5,181 | | |
Interest expense
|
| | | | (4,536) | | | | | | (4,222) | | |
NET INCOME
|
| | | $ | 1,102 | | | | | $ | 959 | | |
Items included in other comprehensive income: | | | | | | | | | | | | | |
Unrealized gain (loss) on cash flow hedge
|
| | | | 159 | | | | | | (665) | | |
TOTAL COMPREHENSIVE INCOME
|
| | | $ | 1,261 | | | | | $ | 294 | | |
Basic and diluted net income per unit | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | 0.01 | | | | | $ | 0.03 | | |
Class A Units
|
| | | $ | 0.01 | | | | | $ | 0.03 | | |
Basic and diluted weighted average units outstanding | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units
|
| | | | 26,323,027 | | | | | | 26,401,089 | | |
|
| | | | | | | | | | | | |
(1) Includes the following amounts paid to related parties, see Note 11
|
| | | $ | 33 | | | | | $ | 50 | | |
| | |
For the 13 Weeks Ended
|
| |||||||||
|
March 27, 2021
|
| |
March 28, 2020
|
| ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 1,102 | | | | | $ | 959 | | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 5,138 | | | | | | 4,898 | | |
Amortization of deferred financing costs
|
| | | | 334 | | | | | | 88 | | |
Provision for bad debts
|
| | | | 104 | | | | | | — | | |
Equity compensation
|
| | | | 298 | | | | | | 827 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (8,206) | | | | | | 3,044 | | |
Inventory
|
| | | | (4,374) | | | | | | (3,896) | | |
Prepaid expenses and other assets
|
| | | | (3,479) | | | | | | 388 | | |
Accounts payable and accrued liabilities
|
| | | | 6,962 | | | | | | (5,164) | | |
Deferred revenue
|
| | | | 210 | | | | | | 212 | | |
Other long-term liabilities
|
| | | | (76) | | | | | | 94 | | |
Net cash (used in) provided by operating activities
|
| | | | (1,987) | | | | | | 1,450 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (224) | | | | | | (1,320) | | |
Reacquisition of area representative rights
|
| | | | (4,275) | | | | | | (28,192) | | |
Net cash used in investing activities
|
| | | | (4,499) | | | | | | (29,512) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds on line of credit
|
| | | | — | | | | | | 17,000 | | |
Proceeds on long-term debt
|
| | | | — | | | | | | 15,000 | | |
Principal payments on long-term debt
|
| | | | (607) | | | | | | (576) | | |
Deferred loan costs
|
| | | | — | | | | | | (35) | | |
Distributions to members
|
| | | | — | | | | | | (1,683) | | |
Contributions from members
|
| | | | 2 | | | | | | — | | |
Repurchase of Class A Units
|
| | | | (942) | | | | | | — | | |
Net cash (used in) provided by financing activities
|
| | | | (1,547) | | | | | | 29,706 | | |
Net (decrease) increase in cash
|
| | | | (8,033) | | | | | | 1,644 | | |
Cash, beginning of period
|
| | | | 36,720 | | | | | | 10,264 | | |
Cash, end of period
|
| | | $ | 28,687 | | | | | $ | 11,908 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 4,187 | | | | | $ | 3,854 | | |
Non-cash investing activities: | | | | | | | | | | | | | |
Reacquired rights purchased included in accounts payable and accrued liabilities
|
| | | $ | 3,381 | | | | | $ | 4,239 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Non-cash equity distributions
|
| | | $ | — | | | | | $ | 122 | | |
| | |
MEZZANINE EQUITY
|
| | |
MEMBERS’ EQUITY
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive loss |
| |
Total
members’ equity |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Class A Founders’ Units
|
| |
Class D Units
|
| | |
Class A Units
|
| |
Class B Units
|
| |
Class C Units
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 26,
2020 |
| | | | 8,309,193 | | | | |
$
|
89,240
|
| | | | | 2,500,000 | | | | |
$
|
24,909
|
| | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | 83 | | | | | $ | (61,473) | | | | | $ | (527) | | | | | $ | 203,874 | | |
Equity compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 298 | | | | | | — | | | | | | — | | | | | | 298 | | |
Repurchase of Class A
Units |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (89,919) | | | | | | (942) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (942) | | |
Contributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 2 | | |
Unrealized gain on cash flow hedge
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 159 | | | | | | 159 | | |
Accretion of Class A
Founders’ Units to redemption value |
| | | | — | | | | | | 31,991 | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (383) | | | | | | (31,608) | | | | | | — | | | | | | (31,991) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,102 | | | | | | — | | | | | | 1,102 | | |
Balance at March 27, 2021
|
| | |
|
8,309,193
|
| | | | $ | 121,231 | | | | |
|
2,500,000
|
| | | | $ | 24,909 | | | | | |
|
26,311,170
|
| | | | $ | 264,849 | | | | |
|
1
|
| | | | $ | — | | | | |
|
1,000
|
| | | | $ | — | | | | |
$
|
—
|
| | | |
$
|
(91,979)
|
| | | |
$
|
(368)
|
| | | |
$
|
172,502
|
| |
| | |
MEZZANINE EQUITY
|
| | |
MEMBERS’ EQUITY
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive loss |
| |
Total
members’ equity |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Class A Founders’ Units
|
| |
Class D Units
|
| | |
Class A Units
|
| |
Class B Units
|
| |
Class C Units
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at
December 28, 2019 |
| | | | 8,309,193 | | | | |
$
|
104,280
|
| | | | | — | | | | |
$
|
—
|
| | | | | | 26,401,089 | | | | | $ | 265,791 | | | | | | 1 | | | | | $ | — | | | | | | 1,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (55,018) | | | | | $ | (735) | | | | | $ | 210,038 | | |
Equity compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 827 | | | | | | — | | | | | | — | | | | | | 827 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (827) | | | | | | (978) | | | | | | — | | | | | | (1,805) | | |
Unrealized loss on cash flow hedge
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (665) | | | | | | (665) | | |
Reduction of Class A Founders’ Units to redemption value
|
| | | | — | | | | | | (17,781) | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,781 | | | | | | — | | | | | | 17,781 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 959 | | | | | | — | | | | | | 959 | | |
Balance at March 28, 2020
|
| | |
|
8,309,193
|
| | | | $ | 86,499 | | | | |
|
—
|
| | | | $ | — | | | | | |
|
26,401,089
|
| | | | $ | 265,791 | | | | |
|
1
|
| | | | $ | — | | | | |
|
1,000
|
| | | | $ | — | | | | |
$
|
—
|
| | | |
$
|
(37,256)
|
| | | |
$
|
(1,400)
|
| | | |
$
|
227,135
|
| |
| | |
Fair
Market Value |
| |
Quoted prices
in active markets for identical assets (Level 1) |
| |
Significant
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Interest rate cap | | | | | | | | | | | | | | | | | | | | | | | | | |
March 27, 2021
|
| | | $ | (368) | | | | | $ | — | | | | | $ | (368) | | | | | $ | — | | |
December 26, 2020
|
| | | $ | (527) | | | | | $ | — | | | | | $ | (527) | | | | | $ | — | | |
| | |
March 27, 2021
|
| |
December 26, 2020
|
| ||||||
Prepaid inventory
|
| | | $ | 1,505 | | | | | $ | 2,000 | | |
Deferred IPO fees
|
| | | | 2,039 | | | | | | 39 | | |
Prepaid other & other current assets
|
| | | | 4,888 | | | | | | 2,535 | | |
Total
|
| | | $ | 8,432 | | | | | $ | 4,574 | | |
| | |
March 27, 2021
|
| |||||||||||||||||||||
|
Weighted Average
Remaining Useful Life (Years) |
| |
Gross
Carrying Value |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||||
Franchisee relationships
|
| | | | 7.49 | | | | | $ | 114,594 | | | | | $ | (28,727) | | | | | $ | 85,867 | | |
Reacquired rights
|
| | | | 9.07 | | | | | | 76,557 | | | | | | (10,144) | | | | | | 66,413 | | |
Favorable lease assets
|
| | | | 0.99 | | | | | | 170 | | | | | | (122) | | | | | | 48 | | |
| | | | | | | | | | | 191,321 | | | | | | (38,993) | | | | | | 152,328 | | |
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name
|
| | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets
|
| | | | | | | | | $ | 255,135 | | | | | $ | (38,993) | | | | | $ | 216,142 | | |
| | |
December 26, 2020
|
| |||||||||||||||||||||
|
Weighted Average
Remaining Useful Life (Years) |
| |
Gross
Carrying Value |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||||
Franchisee relationships
|
| | | | 7.74 | | | | | $ | 114,594 | | | | | $ | (25,870) | | | | | $ | 88,724 | | |
| | |
December 26, 2020
|
| |||||||||||||||||||||
|
Weighted Average
Remaining Useful Life (Years) |
| |
Gross
Carrying Value |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||||
Reacquired rights
|
| | | | 9.19 | | | | | | 68,973 | | | | | | (8,304) | | | | | | 60,669 | | |
Favorable lease assets
|
| | | | 1.24 | | | | | | 170 | | | | | | (110) | | | | | | 60 | | |
| | | | | | | | | | | 183,737 | | | | | | (34,284) | | | | | | 149,453 | | |
Indefinite-lived intangible: | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade name
|
| | | | N/A | | | | | | 63,814 | | | | | | — | | | | | | 63,814 | | |
Total intangible assets
|
| | | | | | | | | $ | 247,551 | | | | | $ | (34,284) | | | | | $ | 213,267 | | |
|
Fiscal Years Ending
|
| |
Franchisee
Relationships |
| |
Reacquired
Rights |
| |
Favorable
Lease Assets |
| |||||||||
2021 (from March 28, 2021)
|
| | | $ | 8,571 | | | | | $ | 5,523 | | | | | $ | 36 | | |
2022
|
| | | | 11,428 | | | | | | 7,364 | | | | | | 12 | | |
2023
|
| | | | 11,428 | | | | | | 7,364 | | | | | | — | | |
2024
|
| | | | 11,428 | | | | | | 7,364 | | | | | | — | | |
2025
|
| | | | 11,428 | | | | | | 7,364 | | | | | | — | | |
Thereafter
|
| | | | 31,584 | | | | | | 31,434 | | | | | | — | | |
Total
|
| | | $ | 85,867 | | | | | $ | 66,413 | | | | | $ | 48 | | |
| | |
March 27, 2021
|
| |
December 26, 2020
|
| ||||||
Accounts payable
|
| | | $ | 9,283 | | | | | $ | 615 | | |
Accrued inventory
|
| | | | 4,351 | | | | | | 3,321 | | |
Accrued compensation
|
| | | | 1,953 | | | | | | 2,169 | | |
Accrued taxes and penalties
|
| | | | 1,713 | | | | | | 1,732 | | |
Accrued lease termination costs
|
| | | | 366 | | | | | | 360 | | |
Accrued technology and subscription fees
|
| | | | 265 | | | | | | 1,536 | | |
Accrued interest
|
| | | | 1,436 | | | | | | 1,440 | | |
Accrued professional fees
|
| | | | 2,528 | | | | | | 967 | | |
Other accrued liabilities
|
| | | | 1,937 | | | | | | 1,349 | | |
Total Accounts payable and accrued liabilities
|
| | | $ | 23,832 | | | | | $ | 13,489 | | |
| | |
March 27, 2021
|
| |
December 26, 2020
|
| ||||||
Term Loan
|
| | | $ | 239,945 | | | | | $ | 240,552 | | |
Revolving Credit Facility
|
| | | | 30,000 | | | | | | 30,000 | | |
Less: current portion
|
| | | | (2,428) | | | | | | (2,428) | | |
Total long-term debt
|
| | | | 267,517 | | | | | | 268,124 | | |
Less: unamortized deferred financing costs
|
| | | | (4,815) | | | | | | (5,149) | | |
Total long-term debt, net
|
| | | $ | 262,702 | | | | | $ | 262,975 | | |
| | |
Balance Sheet Classification
|
| |
March 27, 2021
|
| |
December 26, 2020
|
| ||||||
Derivatives designated as hedging instruments:
|
| | | | | | | | | | | | | | | |
Interest rate cap, current portion
|
| |
Other current liabilities
|
| | | | (181) | | | | | | (181) | | |
Interest rate cap, non-current
portion |
| |
Other long-term liabilities
|
| | | | (187) | | | | | | (346) | | |
Total derivative liabilities designated as hedging instruments
|
| | | | | | $ | (368) | | | | | $ | (527) | | |
| | |
Net Unrealized Gain (Loss)
Recognized in OCI |
| |||||||||
|
13 Weeks Ended
March 27, 2021 |
| |
13 Weeks Ended
March 28, 2020 |
| ||||||||
Derivatives designated as hedging instruments: | | | | | | | | | | | | | |
Interest rate cap
|
| | | $ | 159 | | | | | $ | (665) | | |
Total
|
| | | $ | 159 | | | | | $ | (665) | | |
| | |
Exit Cost
Obligation − Leases |
| |||
Exit cost obligation at December 26, 2020
|
| | | $ | 615 | | |
Accretion
|
| | | | 2 | | |
Payments
|
| | | | (88) | | |
Exit cost obligation at March 27, 2021
|
| | | $ | 529 | | |
| | |
March 27, 2021
|
| |
December 26, 220
|
| ||||||
Accounts payable and accrued liabilities
|
| | | $ | 366 | | | | | $ | 360 | | |
Other long-term liabilities
|
| | | | 163 | | | | | | 255 | | |
Total exit cost obligation
|
| | | $ | 529 | | | | | $ | 615 | | |
| | |
Contract liabilities
|
| |||
Balance at December 26, 2020
|
| | | $ | 8,879 | | |
Revenue recognized that was included in the contract liability at the beginning of the year
|
| | | | (691) | | |
Increase, excluding amounts recognized as revenue during the period
|
| | | | 901 | | |
Balance at March 27, 2021
|
| | | $ | 9,089 | | |
Contract liabilities to be recognized in:
|
| |
Amount
|
| |||
2021 (from March 28, 2021)
|
| | | $ | 2,227 | | |
2022
|
| | | | 1,035 | | |
2023
|
| | | | 1,004 | | |
2024
|
| | | | 945 | | |
2025
|
| | | | 875 | | |
Thereafter
|
| | | | 3,003 | | |
Total
|
| | | $ | 9,089 | | |
| | |
March 27, 2021
|
| |
December 26, 2020
|
| ||||||
Franchise fees
|
| | | $ | 7,882 | | | | | $ | 7,542 | | |
Service revenue
|
| | | | 1,207 | | | | | | 1,337 | | |
Total deferred revenue
|
| | | | 9,089 | | | | | | 8,879 | | |
Long-term portion of deferred revenue
|
| | | | 6,601 | | | | | | 6,528 | | |
Current portion of deferred revenue
|
| | | $ | 2,488 | | | | | $ | 2,351 | | |
| | |
13 Weeks Ended
March 27, 2021 |
| |
13 Weeks Ended
March 28, 2020 |
| ||||||
Net income
|
| | | $ | 1,102 | | | | | $ | 959 | | |
Less: preferred return on Class D Units
|
| | | | (628) | | | | | | — | | |
Less: net income allocated to participating securities
|
| | | | (9) | | | | | | (1) | | |
Net income applicable to common unitholders
|
| | | $ | 465 | | | | | $ | 958 | | |
Net income applicable by class of common units
|
| | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | 112 | | | | | $ | 229 | | |
Class A Units
|
| | | | 353 | | | | | | 729 | | |
Net income applicable to common unitholders
|
| | | $ | 465 | | | | | $ | 958 | | |
Basic and diluted weighted average outstanding units
|
| | | | | | | | | | | | |
Class A Founders’ Units
|
| | | | 8,309,193 | | | | | | 8,309,193 | | |
Class A Units
|
| | | | 26,323,027 | | | | | | 26,401,089 | | |
Basic and diluted net loss per unit applicable to unitholders: | | | | | | | | | | | | | |
Class A Founders’ Units
|
| | | $ | 0.01 | | | | | $ | 0.03 | | |
Class A Units
|
| | | $ | 0.01 | | | | | $ | 0.03 | | |
|
SEC registration fee
|
| | | $ | * | | |
|
Nasdaq Global Select Market listing fee
|
| | | | * | | |
|
FINRA filing fee
|
| | | | * | | |
|
Printing expenses
|
| | | | * | | |
|
Accounting fees and expenses
|
| | | | * | | |
|
Legal fees and expenses
|
| | | | * | | |
|
Transfer agent fees and expenses
|
| | | | * | | |
|
Miscellaneous
|
| | | | * | | |
|
Total
|
| | | $ | * | | |
|
Exhibit
Number |
| |
Description
|
|
| 1.1* | | | Form of Underwriting Agreement. | |
| 2.1 | | | | |
| 2.2 | | | | |
| 2.3 | | | | |
| 3.1 | | | | |
| 3.2 | | | | |
| 5.1* | | |
Opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP as to legality of the Class A common stock.
|
|
| 10.1 | | | | |
| 10.2 | | | | |
| 10.3 | | | | |
| 10.4 | | | | |
| 10.5+ | | | | |
| 10.6 | | | | |
| 10.7 | | | | |
| 10.8 | | | | |
| 10.9 | | | | |
| 10.10 | | | | |
| 10.11+ | | | | |
| 10.12+ | | | | |
| 10.13+ | | | | |
| 10.14+ | | | | |
| 10.15+ | | | | |
| 10.16+ | | | | |
| 10.17+ | | | | |
| 10.18+ | | | | |
| 10.19+ | | | | |
| 21.1 | | | | |
| 23.1 | | | | |
| 23.2 | | | |
|
Exhibit
Number |
| |
Description
|
|
| 23.3* | | |
Consents of Paul, Weiss, Rifkind, Wharton & Garrison LLP (included in Exhibit 5.1 to this Registration Statement).
|
|
| 24.1 | | | |
|
Signature
|
| |
Title
|
|
|
/s/ David P. Berg
David P. Berg
|
| |
Chief Executive Officer
(Principal Executive Officer) and Director |
|
|
/s/ Jennifer Vanderveldt
Jennifer Vanderveldt
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
|
|
/s/ Alexa Bartlett
Alexa Bartlett
|
| |
Director
|
|
|
/s/ Andrew Crawford
Andrew Crawford
|
| |
Director
|
|
|
/s/ Laurie Ann Goldman
Laurie Ann Goldman
|
| |
Director
|
|
|
/s/ Shaw Joseph
Shaw Joseph
|
| |
Director
|
|
|
/s/ Dorvin D. Lively
Dorvin D. Lively
|
| |
Director
|
|