Learn More about insider trades at Franchise Group. For the fourth quarter of fiscal 2022, total reported revenue for Franchise Group was approximately $1.1 billion, net loss from continuing operations was approximately $0.7 million or $0.08 per fully diluted share, Adjusted EBITDA was approximately $65.3 million and Non-GAAP EPS was $0.47 per share. FactSet (a) does not make any express or implied warranties of any kind regarding the data, including, without limitation, any warranty of merchantability or fitness for a particular purpose or use; and (b) shall not be liable for any errors, incompleteness, interruption or delay, action taken in reliance on any data, or for any damages resulting therefrom. PSP is one of the leading US pet care stores with more than 644 locations across the country, with 414 of them currently franchised. For the Three Months Ended December 31, 2022, Stock-based and long term executive compensation, Securitized accounts receivable interest income, Securitized accounts receivable bad debt reserve, Prepayment penalty on early debt repayment, Right-of-use asset and long-term asset impairment, Gain on sale-leaseback and owned properties, net, For the Twelve Months Ended December 31, 2022. Enter your email address below to get our daily insider buying and selling report. Since 2009, Mr. Laurence has also been a partner of Vintage Capital Management, which is a value-oriented, operations-focused, private and public equity investor specializing in the consumer, aerospace and defense, and manufacturing sectors. Learn More about Brian Randall Kahn's net worth. and bought an estimated value of $139.49M worth of shares. This business segment generated $93.2 million in EBITDA for 2021 and has been one of the best-performing segments during the macroeconomic downturn as it generated $51.46 million in EBITDA in the first two quarters of 2022. Franchise Group, Inc. is a holding company, which engages in the provision of tax return preparation and related services and products. During the last twelve months, Franchise Group insiders bought shares 5 times. Brian R. Kahn, Chief Executive Officer, Ms. McMillan-McWaters holds a Bachelor of Arts degree from Seton Hall University and a Juris Doctorate from the University of North Carolina School of Law. Mr. Laurence has served as the Executive Vice President of Franchise Group, Inc. since October 2, 2019 and was previously also on its Board of Directors. 2023 Vintage Capital Management, LLC. Franchise Group Inc CEO Brian Kahn and other company management team members could pay between $30 and $35 per share for the deal, which is reportedly in the early stages. The following table summarizes Revenue, Adjusted EBITDA, and Net Income/(Loss) for each of these segments. Franchise Group is a textbook example of a management team that has "skin in the game" and then some. Company Participants. Data are provided 'as is' for informational purposes only and are not intended for trading purposes. Prior to Coral Reef, Mr. Laurence was the Managing Partner of Causeway Partners, a Boston-based private equity group making control and structured equity investments in U.S. lower-middle market companies. Learn More on Franchise Group's active insiders. Franchise Group on the other hand returns value to shareholders both through a generous dividend policy and a share buy-back program. Source: FactSet, Markets Diary: Data on U.S. Overview page represent trading in all U.S. markets and updates until 8 p.m. See Closing Diaries table for 4 p.m. closing data. Oak Street has proven to be a trustworthy partner throughout our sale leaseback process, said Brian Kahn, President and CEO of Franchise Group. Brian R. Kahn usually trades in March, with the busiest year in 2020. The noise surrounding the recent developments has been picked up by shorts sellers who at this point sold short roughly 10% of the float, another indication that there is no clear consensus on the future prospects of Franchise Group, at least in the short to mid-term. Mr. Seeton served as the Senior Vice President and Chief Financial Officer of API Technologies Corporation, Business Unit Finance Director for the radio frequency and microwave business unit of Analog Devices, Inc. and as the Director of Corporate Finance for Hittie Microwave Corp. Mr. Seeton is a Certified Public Accountant and holds a Bachelor of Science degree in Accounting from Bentley College (now Bentley University) and an M.B.A. from Cornell University. Furthermore, its sheer size does not allow the conglomerate to delve into the companies with which Franchise Group does business. We use cookies and browser capability checks to help us deliver our online services, including to learn if you enabled Flash for video or ad blocking. With some back of the paper math, deploying just slightly less than $200 million of the share buy-back package would bring shares outstanding down to 35 million, lowering them by roughly 15% and almost immediately pushing the dividend yield to 8.55%. The acquirees often have one thing in common, they operate businesses that are franchisable but remain corporate-led and operated to a large extent. It is mandatory to procure user consent prior to running these cookies on your website. 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Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. ($ In thousands except share count and per share data), Net income (loss) from continuing operations / Net income (loss) from continuing operations per diluted share, Adjusted Net Income available to Common Stockholder, Non-cash amortization of debt issuance costs, Amortization of acquisition-related intangibles, Impact of diluted share count assuming non-GAAP net income, Total Adjustments to Net income (loss) from continuing operations, Non-GAAP Net Income from continuing operations / Non-GAAP diluted EPS from continuing operations, Non-GAAP diluted weighted average shares outstanding. Management seeks to rapidly restructure the acquiree and refranchise the now-owned corporate locations leading to an influx of cash which is directed to aggressively deleverage the company. Mr. Kahn founded and has served as the investment manager of Vintage and its Our franchising activity continued to accelerate across FRG in 2022. Copyright FactSet Research Systems Inc. All rights reserved. Brian Kahn, Franchise Groups President and CEO stated, I am proud of FRGs overall performance in the first quarter. Franchise Group, Inc. ( NASDAQ: FRG) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Thank you for standing by and welcome to Conference Call -- the Franchise Group Third Quarter 2022 Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Use of this website is subject to its Terms of Use | Privacy Policy | Your California Privacy Rights/Privacy Policy | Do Not Sell My Info/Cookie Policy. Bloomberg Chief Washington Correspondent Joe Mathieu delivers insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. Our financial performance in the fourth quarter was in line with the outlook we provided in November, said Brian Kahn, Franchise Groups president and CEO. At the end of an acquisition cycle, the company no longer owns and operates a retail chain but instead becomes the owner of the brand, running a much leaner operation while dictating the rules and collecting the royalty checks in the meantime. ET to discuss its business and financial results for the fiscal 2022 fourth quarter and full year. This is exactly where the brilliance of the strategy the company is utilizing comes under the spotlight. FRG finished fiscal 2022 with approximately 34.9 million shares outstanding, a reduction of shares outstanding of approximately 15% from the beginning of the fiscal year. It is worth keeping in mind that the distressed economic situation is causing havoc in the retail space, potentially creating multiple acquisition opportunities that management would want to explore. While the growth aspect of the company remains largely subservient to M&A execution down the road, the dividend is still well supported by fundamentals, even when accounting for the downgraded guidance, which lowered EBITDA estimates to $390 million for this year. A degrading macroeconomic environment and a downgrade in guidance resulted in tremendous down-pressure being applied to the company's stock price, which is now down 37.74% year-to-date. Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Provision for doubtful accounts for accounts receivable, Depreciation, amortization, and impairment charges, Gain on sale-leaseback, bargain purchases, and sales of Company-owned stores, net, Prepayment penalty for early debt extinguishment, Net cash provided (used in) operating activities, Purchases of property, plant, and equipment, Proceeds from sale of property, plant, and equipment, Acquisition of business, net of cash and restricted cash acquired, Divestituture of business, net of cash and restricted cash sold, Issuance of operating loans to franchisees, Payments received on operating loans to franchisees, Net cash provided by (used in) investing activities, Issuance of long-term debt and other obligations, Repayment of long-term debt and other obligations, Principal payments of finance lease obligations, Payment for debt issue costs and prepayment penalty on extinguishment, Cash paid for taxes on exercises/vesting of stock-based compensation, Net cash provided by (used in) financing activities, Effect of exchange rate changes on cash, net, Net increase in cash and cash equivalents and restricted cash, Cash, cash equivalents and restricted cash at beginning of year, Cash, cash equivalents and restricted cash at end of year, Non-cash proceeds from divestiture of Liberty Tax, Deferred financing costs from issuance of common stock, Capital expenditures funded by finance lease liabilities, Tax receivable agreement included in other long-term liabilities, Non-GAAP Financial Measures and Key Metrics. Certainly, it is something that we - just say we've not had an open window, still don't have an open window. Participants should ask to be joined to the Franchise Group Inc. call. On December 31, 2022, total cash on hand was approximately $80.8 million and outstanding term debt was approximately $1.1 billion. The rapidly degrading macroeconomic environment began taking its toll on some of the franchises with the most vulnerable business models, which ultimately translated itself into the bottom line and led to a disappointing downgrade in guidance. Data may be intentionally delayed pursuant to supplier requirements. All rights reserved. Announces the Closing of Its Upsized $300 Million Add-On to Its Existing Term Loan, Franchise Group, Inc. On top of that, the company has institutional ownership estimated at 54.55%, with roughly 190 institutional holders owning 22 million shares. WebPresident, Chief Executive Officer & Director, Franchise Group, Inc. 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