Q3 2021 Total and E-Commerce Revenue Up 75%
and 183%, Respectively.
Near Break-even Reported and Adjusted Net Income and EBITDA in
Q3.
MONTREAL, Nov. 11, 2021 /CNW/ - LXRandCo, Inc. ("LXR" or
the "Company") (TSX: LXR) (TSX: LXR.WT), a North American socially
responsible, digital-first omni-channel retailer of authenticated
pre-owned luxury handbags and personal accessories, today reported
its financial results for the third quarter ended September 30, 2021 ("Q3 2021").
"Q3 was a quarter of several achievements. First, we closed the
quarter with near-record break-even financial results on both a
reported and adjusted basis one quarter ahead of plan, and are
setting the stage for a profitable fourth quarter and growth for
next year. Second, we grew our total net revenue in excess of 75%
without compromising gross margin, which came in at a near-record
level of 35%. To more adequately reflect the needs of our
digital-first model, we continued to invest in our business both
through increased working capital and human resources, which led to
e-commerce net revenue growth of 183% in the period. Lastly,
our total revenue trajectory continues on plan. At Q3, our LTM
total net revenue stood at $15
million and our expectations for the fourth quarter are to
close the year at between $18 million
and $20 million in total net
revenue." said Cam di Prata, the
Company's CEO.
Provided below are the financial highlights and a
discussion of the Company's financial results for the three–months
ended September 30, 2021, which are
to be read in conjunction with the Company's unaudited interim
condensed consolidated financial statements and Management's
Discussion and Analysis ("MD&A") for the period.
Overview of Results for the
Three-Month Period Ended September 30, 2021
("Q3 2021"), compared to the
Three-Month Period Ended September 30, 2020
("Q3 2020")
Selected financial highlights include the following:
- Total net revenue increased 75% to $5.0
million.
- E-commerce net revenue increased 183% to $2.5 million and e-commerce average order value
increased 3.9% to $937 per
transaction.
- E-commerce penetration increased to 50% from 31%.
- Retail net revenue, which includes revenue from retail stores
and wholesale operations, was $2.5
million, an increase of 26%. At quarter-end, we had a
network of ten stores (nine of which were in operation).
- Gross profit margin was 35.2% compared to 28.2%.
- Selling, general and administrative ("SG&A") expenses
decreased 32% to $1.9 million,
representing 39% of total net revenue versus 99% of total net
revenue last year.
- Adjusted Net loss (a non-IFRS measure) was $0.4 million versus a loss of $1.2 million.
- Adjusted EBITDA (a non-IFRS measure) was a loss of $0.2 million versus a loss of $0.8 million.
- Free Cash Flow (a non-IFRS measure) was negative $2.2 million as compared to $0.1 million, reflecting primarily increased
working capital investment in product inventory.
- Cash and cash availability at the end of Q3 2021 totalled
$2.6 million as compared to
$0.5 million in Q3 2020.
Discussion of the Three-Month Periods Ended September 30, 2021 and 2020
Unless otherwise indicated, all amounts are expressed in
Canadian dollars. Certain metrics, including those expressed on an
adjusted basis, are non-IFRS measures. See "Non-IFRS Measures"
further below. For a reconciliation of non-IFRS measures to their
most directly comparable measure calculated in accordance with
IFRS, see "Select Consolidated Financial Information" further
below.
Comparison of the Three-Month Periods Ended September 30, 2021, and 2020
Net Revenue
For Q3 2021, total net revenue increased by 74.5% to
$5.0 million from $2.9 million in Q3 2020. During this period,
approximately 50.3% of our total net revenue was generated from
e-commerce and 49.7% from retail activities (stores and wholesale
channels combined), as compared to 31.0% and 69.0%, respectively,
in the same period in 2020. During Q3 2021, approximately 61.1% of
our net revenue was generated in the U.S., with the balance coming
from Canada, as compared to 80.5%
from the U.S. in Q3 2020. This shift in revenue mix was due to the
geographic impact of the U.S. Partner Bankruptcies, which reduced
our U.S. business substantially in Q3 2021, and to the
increased share in e-commerce revenue as compared
to Q3 2020.
Included in total net revenue for Q3 2020 is non-recurring
net revenue from retail partners affected by the U.S. Partner
Bankruptcies of $1.7 million.
Excluding the impact of U.S. Partner Bankruptcies, total net
revenue in Q3 2021 increased by 173.3% versus the same period
in 2020.
E-commerce
E-commerce penetration increased to 50.3% from 31.0% in
Q3 2020. During this period, e-commerce net revenue was
$2.5 million, an increase of 183.0%
compared to prior period.
Included in e-commerce net revenue for Q3 2020 is non-recurring
net revenue from retail partners affected by the U.S. Partner
Bankruptcies of $0.1 million.
Excluding the impact of the U.S. Partner Bankruptcies, e-commerce
net revenue in Q3 2021 increased by 197.9% versus the same
period in 2020.
E-commerce AOV in Q3 2021 was $937, an increase of 3.9% versus the comparable
period last year.
Retail
For Q3 2021, retail net revenue (which includes net revenue from
stores and wholesale channels) increased 25.8% to $2.5 million as compared to $2.0 million in Q3 2020. The increase
highlights the continued recovery from the adverse impact of
COVID-19 on our and our channel partner's retail activities, as
well as permanent store closures relating to the U.S. Partner
Bankruptcies. As at September 30,
2021, our retail store network consisted of ten stores, of
which only nine were open as compared to 11 stores as at
September 30, 2020, eight of them
being operational. During Q3 2021, we did not open or close any
stores (Q3 2020 – 48 closures).
Discontinued Net Revenue from U.S. Partner
Bankruptcies
In Q3 2021, we generated no revenue from partners affected
by the U.S. Partner Bankruptcies (Q3 2020—$1.7 million total net
revenue and $0.1 million e-commerce
net revenue, respectively). As these partners have permanently
ceased their operations, we are actively working to replace this
lost revenue through a combination of increased e-commerce activity
and the addition of other retail channel partners.
To facilitate greater comparability, the financial table
"Revenue by Channel (Excluding Impact of the U.S. Partner
Bankruptcies)" provided below sets forth the net revenue by channel
excluding the impact of U.S. Partner Bankruptcies.
Revenue by Channel (Excluding Impact of U.S. Partner
Bankruptcies1)
|
For the
three-months ended September 30,
|
($)
|
2021
|
2020
|
Increase/
(Decrease)
|
Total net
revenue
|
4,987,628
|
2,857,718
|
75%
|
Less: Revenue from
U.S. Bankrupt Partners
|
—
|
1,669,377
|
n/a
|
Adjusted Total net
revenue
|
4,987,628
|
1,188,341
|
320%
|
|
|
|
|
E-commerce net
revenue
|
2,506,850
|
885,669
|
183%
|
Less: Revenue from
U.S. Bankrupt Partners
|
—
|
44,148
|
n/a
|
Adjusted e-commerce
net revenue
|
2,506,850
|
841,521
|
198%
|
Total and E-commerce LTM Net Revenue
As we emerge from the effects of the pandemic, we closely
monitor our LTM net revenue, which adjusts for the effects of
seasonality and provides a trailing full-year assessment of revenue
momentum and growth through this recovery period. The following
table provides an overview of historical total and e-commerce net
revenue on a quarterly and LTM basis. As highlighted below, our
full-year net revenue target for 2021 is between $18 million and $20
million, with over 50% of total net revenue expected to come
from our digital channels.
________________________
|
1 Revenue from U.S. Partner
Bankruptcies means net revenue pertaining to Stage Stores, Lord
& Taylor, Stein Mart Stores and Century 21, all no longer in
operation.
|
|
Total net
revenue
|
E-commerce net
revenue
|
|
E-commerce
penetration
|
Actuals
($):
|
Quarterly
|
LTM
|
Quarterly
|
LTM
|
|
LTM
|
Q1 2019
|
8,756,063
|
38,982,959
|
604,023
|
2,294,094
|
|
6%
|
Q2 2019
|
8,558,435
|
38,254,627
|
959,525
|
2,654,334
|
|
7%
|
Q3 2019
|
8,314,615
|
36,493,740
|
985,288
|
3,057,856
|
|
8%
|
Q4 2019
|
14,440,173
|
40,069,286
|
1,175,652
|
3,724,488
|
|
9%
|
Q1 2020
|
6,097,604
|
37,410,827
|
975,592
|
4,096,057
|
|
11%
|
Q2 2020
|
1,430,284
|
30,282,676
|
802,658
|
3,939,190
|
|
13%
|
Q3 2020
|
2,857,718
|
24,825,779
|
885,669
|
3,839,571
|
|
15%
|
Q4 2020
|
3,391,813
|
13,777,419
|
1,715,804
|
4,379,723
|
|
32%
|
Q1 2021
|
2,602,071
|
10,281,886
|
1,572,640
|
4,976,771
|
|
48%
|
Q2 2021
|
4,026,028
|
12,877,630
|
2,522,682
|
6,696,795
|
|
52%
|
Q3 2021
|
4,987,628
|
15,007,540
|
2,506,850
|
8,317,976
|
|
55%
|
|
|
|
|
|
|
|
Q4 2021
Target
|
|
18,000,000
—
|
|
|
|
50% —
65%
|
|
|
20,000,000
|
|
|
|
|
Gross Profit and Gross Margin
Gross profit in Q3 2021 increased by 117.8% to $1.8 million as compared to $0.8 million in Q3 2020. The increase in gross
profit dollars is attributable to a mix of select price increases,
the sale of a larger share of higher margin items during the
quarter, increased cost savings and a decrease in partner licensing
fees as compared to prior year.
Gross profit margin in Q3 2021 increased to 35.2% compared to
28.2% in Q3 2020, mostly due the factors described above.
SG&A Expenses
In Q3 2021, SG&A expenses decreased by 31.8% to
$1.9 million, compared to
$2.8 million in Q3 2020. This
decrease was primarily due to an absence of store payroll-related
expenses for the period, compared to Q3 2020 during which up to 59
stores were open and overall general cost rationalization
initiatives.
On September 30, 2021, we employed
59 people across our ten retail stores, and our two office
locations in Montreal, Canada and
Tokyo, Japan. At the end of Q3
2020, our employee headcount was 56, all of them being direct
employees of the Company. Over the past year, we have actively been
restructuring the business as part of our digital-first
transformation, which has led to investments in key resources to
support the growth.
Net Profit
In Q3 2021, we achieved a net profit of $59,223, an improvement from a net loss of
$2.7 million in Q3 2020. This was
primarily due to the combination of higher revenues, higher gross
margin and lower SG&A costs, all as discussed above, as
compared to Q3 2020.
Adjusted Net Loss
In Q3 2021, Adjusted Net Loss was $0.4
million as compared to an Adjusted Net Loss of $1.2 million in Q3 2020. This $0.8 million improvement was primarily due to an
improvement in net income of $2.8
million, offset by foreign exchange gain adjustments, the
absence of any property and equipment write-offs in the quarter
from the closure of the US stores and the absence of non-recurring
loss due to bad debt. The table on page 12 sets forth the
reconciliation of Net Loss to Adjusted Net Loss.
Adjusted EBITDA
In Q3 2021, Adjusted EBITDA was a loss of $0.2 million as compared to an Adjusted EBITDA
loss of $0.8 million in Q3 2020. This
favorable variance of $0.6 million
was primarily due to an improvement in EBITDA in the quarter of
$2.7 million, offset by foreign
exchange gain adjustments, the absence of any property and
equipment write-offs in the quarter from the closure of the US
stores and the absence of non-recurring loss due to bad debt. The
table on page 12 sets forth the reconciliation of Net Loss to
Adjusted EBITDA.
Free Cash Flow
In Q3 2021, Free Cash Flow was negative $2.2 million as compared to $0.1 million in Q3 2020. This negative variance
of $2.3 million is the result of an
improvement to net profit of $2.8
million, offset by a decrease in non-cash charges of
$1.0 million (primarily the write-off
of non-core property and equipment) and a decrease in non-cash
working capital of $4.0 million due
primarily to increased inventory spend to support the upcoming last
quarter sales and higher account receivables due to increased
revenue during the quarter. The table below sets forth the
computation of Free Cash Flow for the period.
|
For the
three-months ended September 30,
|
($)
|
2021
|
2020
|
Increase
(Decrease)
|
Net profit
(loss)
|
59,223
|
(2,786,350)
|
2,845,573
|
Non-cash
items:
|
|
|
|
Depreciation of
property and equipment
|
73,099
|
146,034
|
(72,935)
|
Amortization of
intangible assets
|
5,937
|
32,075
|
(26,138)
|
Amortization of
deferred financing costs
|
7,203
|
7,203
|
-
|
Stock-based
compensation expense
|
6,544
|
72,631
|
(66,087)
|
Gain on disposal of
property and equipment
|
-
|
-
|
-
|
Write-off of property
and equipment
|
-
|
873,435
|
(873,435)
|
Unrealized foreign
exchange loss
|
(5,496)
|
4,595
|
(10,091)
|
|
87,287
|
1,135,973
|
(1,048,686)
|
Net profit (loss)
after non-cash adjustments
|
146,510
|
(1,650,377)
|
1,796,887
|
Net change in
non-cash working capital balances
|
(2,322,046)
|
1,712,028
|
(4,034,074)
|
Cash flows (used)
generated in operating activities
|
(2,175,536)
|
61,651
|
(2,237,187)
|
|
|
|
|
Less: Acquisitions of
property and equipment
|
(15,436)
|
-
|
(15,436)
|
Free cash
flow
|
(2,190,972)
|
61,651
|
(2,252,623)
|
Key Financial and Operating Information
The following table summarizes our recent results of operations
for the periods indicated. The selected consolidated financial
information set out below has been derived from our unaudited
interim condensed consolidated financial statements and related
notes. The selected unaudited interim condensed consolidated
financial information set out below for the periods below is
unaudited.
Consolidated statements of profit (loss)
(in Canadian dollars)
|
For the
three-months ended
September
30,
|
|
For the
nine-months ended
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
Net
revenue
|
4,987,628
|
2,857,718
|
|
11,615,727
|
10,385,606
|
Cost of
sales
|
3,233,249
|
2,052,166
|
|
7,721,819
|
7,182,821
|
Gross
profit
|
1,754,379
|
805,552
|
|
3,893,908
|
3,202,785
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,927,774
|
2,827,722
|
|
5,587,041
|
8,128,402
|
Amortization and
depreciation expenses
|
79,036
|
178,109
|
|
246,843
|
532,799
|
Loss from
operating activities
|
(252,431)
|
(2,200,279)
|
|
(1,939,976)
|
(5,458,416)
|
Other income and
expenses
|
|
|
|
|
|
Finance
costs
|
117,230
|
133,138
|
|
431,468
|
456,378
|
Foreign exchange loss
(gain)
|
(428,884)
|
389,858
|
|
15,432
|
(475,982)
|
Profit (loss)
before income taxes
|
59,223
|
(2,723,275)
|
|
(2,386,876)
|
(5,438,812)
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
Current
|
—
|
63,075
|
|
18,570
|
63,075
|
Net profit
(loss)
|
59,223
|
(2,786,350)
|
|
(2,405,446)
|
(5,501,887)
|
|
For the
three-months ended
September
30,
|
|
For the
nine-months ended
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Reconciliation of
Net Profit (Loss) to Adjusted Net Profit (Loss)
|
|
|
|
|
|
Net Profit
(loss)
|
59,223
|
(2,786,350)
|
|
(2,405,446)
|
(5,501,887)
|
Adjustments to Net
Profit (loss):
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
(428,884)
|
389,858
|
|
15,432
|
(475,982)
|
Non-recurring loss
due to bad debt
|
—
|
287,829
|
|
—
|
697,625
|
Gain on disposal of
property and equipment
|
—
|
—
|
|
(1,250)
|
—
|
Write-off of property
and equipment
|
—
|
873,435
|
|
—
|
1,043,013
|
Stock-based
compensation
|
6,544
|
78,741
|
|
105,781
|
576,651
|
Store closing
costs
|
—
|
(97)
|
|
—
|
11,968
|
Adjusted Net
Loss
|
(363,117)
|
(1,156,584)
|
|
(2,285,483)
|
(3,648,612)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three-months ended
September
30,
|
|
For the
nine-months ended
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Reconciliation of
Net Profit (Loss) to Adjusted EBITDA
|
|
|
|
|
|
Net Profit
(Loss)
|
59,223
|
(2,786,350)
|
|
(2,405,446)
|
(5,501,887)
|
Adjustments to Net
Profit (Loss):
|
|
|
|
|
|
Amortization and
depreciation expense
|
79,036
|
178,109
|
|
246,843
|
532,799
|
Finance
costs
|
117,230
|
133,138
|
|
431,468
|
456,378
|
Income Tax
Expense
|
—
|
63,075
|
|
18,570
|
63,075
|
EBITDA
|
255,489
|
(2,412,028)
|
|
(1,708,565)
|
(4,449,635)
|
|
|
|
|
|
|
Adjustments to
EBITDA:
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
(428,884)
|
389,858
|
|
15,432
|
(475,982)
|
Non-recurring loss
due to bad debt
|
—
|
287,829
|
|
—
|
697,625
|
Gain on disposal of
property and equipment
|
—
|
—
|
|
(1,250)
|
—
|
Write-off of property
and equipment
|
—
|
873,435
|
|
—
|
1,043,013
|
Stock-based
compensation
|
6,544
|
78,741
|
|
105,781
|
576,651
|
Store closing
costs
|
—
|
(97)
|
|
—
|
11,968
|
Adjusted
EBITDA
|
(166,851)
|
(782,262)
|
|
(1,588,602)
|
(2,596,360)
|
Selected Quarterly Financial Information
The following table summarizes certain of our financial results
for the most recently completed eight quarters for which financial
statements have been prepared by us as a reporting issuer. This
unaudited quarterly information has been prepared in accordance
with IFRS. Due to our recent change in strategy, the impact of
COVID-19 and other factors such as seasonality, the results of
operations for any quarter are not necessarily comparable or
indicative of the results of operations for the full year.
($)
|
|
|
|
Consolidated
statements of profit (loss):
|
Q3-2021
|
Q2-2021
|
Q1-2021
|
Q4-2020
|
Q3-2020
|
Q2-2020
|
Q1-2020
|
Q4-2019
|
Total net
revenue
|
4,987,628
|
4,026,028
|
2,602,071
|
3,391,813
|
2,857,718
|
1,430,284
|
6,097,604
|
14,440,173
|
E-commerce
revenue
|
2,506,850
|
2,522,682
|
1,572,640
|
1,715,804
|
885,669
|
802,658
|
975,592
|
1,175,652
|
E-commerce revenue %
of total net revenue
|
50.3%
|
62.7%
|
60.4%
|
50.60%
|
31.00%
|
56.10%
|
16.00%
|
8.10%
|
Gross
margin
|
35.2%
|
32.8%
|
31.5%
|
32.7%
|
28.2%
|
33.6%
|
31.4%
|
32.8%
|
Adjusted Net
Loss
|
(363,117)
|
(1,067,683)
|
(854,683)
|
(886,691)
|
(1,156,584)
|
(934,116)
|
(1,967,708)
|
(522,182)
|
Adjusted
EBITDA
|
(166,851)
|
(839,510)
|
(582,241)
|
(708,200)
|
(782,262)
|
(643,919)
|
(1,579,975)
|
(73,941)
|
Adjusted EBITDA % of
total net revenue
|
(3.3%)
|
(20.9%)
|
(22.4%)
|
(20.9%)
|
(27.4%)
|
(45.0%)
|
(25.9%)
|
(0.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM metrics and
growth:
|
|
|
|
|
|
|
|
|
LTM Total net
revenue
|
15,007,540
|
12,877,630
|
10,281,886
|
13,777,419
|
24,825,779
|
30,282,676
|
37,410,827
|
40,069,286
|
LTM E-commerce
revenue
|
8,317,976
|
6,696,795
|
4,976,771
|
4,379,723
|
3,839,571
|
3,939,190
|
4,096,057
|
3,724,488
|
E-commerce revenue –
period over period growth
|
183.0%
|
214.3%
|
61.2%
|
45.9%
|
-10.1%
|
-16.3%
|
61.5%
|
131.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
Net profit
(loss)
|
59,223
|
(1,580,635)
|
(884,034)
|
(2,208,618)
|
(2,786,350)
|
(1,741,391)
|
(974,146)
|
(1,685,777)
|
Add: non-cash
items
|
87,287
|
390,704
|
(94,643)
|
97,883
|
1,135,973
|
24,825
|
642,166
|
976,914
|
Add: Net change in
non-cash working capital
|
(2,322,046)
|
(32,428)
|
(628,959)
|
1,475,699
|
1,712,028
|
994,985
|
177,852
|
1,525,191
|
Cash flows
provided/(used) in operating activities
|
(2,175,536)
|
(1,222,358)
|
(1,607,636)
|
(635,036)
|
61,651
|
(721,581)
|
(154,128)
|
816,328
|
Less: acquisition of
property and equipment
|
(15,436)
|
(9,998)
|
(14,593)
|
(4,171)
|
—
|
—
|
(1,337)
|
(6,770)
|
Free Cash
Flow
|
(2,190,972)
|
(1,232,356)
|
(1,622,229)
|
(639,207)
|
61,651
|
(721,581)
|
(155,465)
|
809,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
|
Cash
availability
|
2,603,395
|
4,315,918
|
4,653,792
|
7,289,957
|
501,033
|
797,777
|
1,393,351
|
3,498,824
|
Working
capital
|
7,083,280
|
7,033,183
|
7,133,717
|
8,949,997
|
2,877,864
|
4,523,360
|
-584,103
|
1,332,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
32,783,145
|
32,783,145
|
28,176,012
|
28,176,012
|
Closing share
price
|
0.100
|
0.130
|
0.120
|
0.245
|
0.200
|
0.250
|
0.280
|
0.205
|
Market
capitalization
|
9,278,316
|
12,061,810
|
11,133,979
|
22,731,873
|
6,556,629
|
8,195,786
|
7,889,283
|
5,776,082
|
Add: Total
debt*
|
6,272,286
|
5,758,443
|
4,814,459
|
5,733,129
|
5,173,259
|
5,438,870
|
6,009,844
|
8,044,331
|
Less: Cash
|
2,603,395
|
4,315,918
|
4,653,792
|
7,289,957
|
501,033
|
797,777
|
1,393,351
|
3,498,824
|
Enterprise value
(EV)
|
12,947,207
|
13,504,335
|
11,404,730
|
21,175,045
|
11,228,855
|
12,836,879
|
12,505,776
|
10,321,589
|
Multiple of EV/Last
12 months revenue
|
0.86x
|
1.05x
|
1.10x
|
1.54x
|
0.45x
|
0.42x
|
0.33x
|
0.26x
|
|
|
|
|
|
|
|
|
|
* Total debt
includes the Line of Credit and the BCAP loan
|
|
|
|
|
|
|
|
About LXR
LXR is a socially responsible, digital-first omni-channel
retailer of authenticated pre-owned luxury handbags and personal
accessories. We provide consumers with branded products from
Hermès, Louis Vuitton, Gucci, Prada,
and Chanel, among other high-quality brands, by promoting their
reuse and providing an environmentally responsible way for
consumers to purchase luxury products. We achieve this through our
digital-first strategy by selling directly to consumers through our
website at www.lxrco.com and indirectly by powering the
e-commerce platforms of key channel partners. Our omni-channel
model is also supported by retail 'shop-in-shop' experience centers
and by wholesale activities with select retail partners across
North America.
Non-IFRS Measures
This press release refers to certain non-IFRS measures. These
measures are not recognized under IFRS, do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement IFRS measures by providing further understanding of
LXR's performance and results of operations from management's
perspective. Accordingly, these measures should not be considered
in isolation nor as a substitute for analysis of LXR's financial
information reported under IFRS. Management uses non-IFRS measures
including: "LTM", "EBITDA," "Adjusted EBITDA," and "Adjusted Net
Loss". These non-IFRS measures are used to provide investors with
supplemental measures of LXR's operating performance and thus
highlight trends in LXR's business that may not otherwise be
apparent when relying solely on IFRS measures. Management believes
that securities analysts, investors and other interested parties
frequently use non-IFRS measures in the evaluation of company
performance. Management also uses non-IFRS measures in order to
facilitate operating performance comparisons from period to period,
to prepare annual operating budgets and forecasts and to determine
components of management compensation. For a definition of EBITDA,
Adjusted EBITDA, and Adjusted Net Loss, and a reconciliation of
these non-IFRS measures to IFRS measures, see the above tables
presented.
Caution Regarding Forward-Looking Statements
Certain statements in this press release are prospective in
nature and constitute forward-looking information or
forward-looking statements within the meaning of applicable
securities laws (collectively, "forward-looking
statements"). Forward-looking statements generally, but not
always, can be identified by the use of forward-looking terminology
such as "outlook", "objective", "may", "could", "would", "will",
"expect", "intend", "estimate", "forecasts", "project", "seek",
"anticipate", "believes", "should", "plans" or "continue", or
similar expressions suggesting future outcomes or events and the
negative of any of these terms. Forward-looking statements in this
news release include, but are not limited to, statements concerning
future objectives and strategies to achieve those objectives,
including, without limitation, store openings and closures, as well
as other statements with respect to management's beliefs, plans,
estimates and intentions, and similar statements concerning
anticipated future events, results, outlook, circumstances,
performance or expectations that are not historical facts.
Forward-looking statements reflect management's current beliefs,
expectations and assumptions and are based on information currently
available to management, which includes assumptions about continued
revenues based on historical past performance, management's
historical experience, perception of trends and current business
conditions, expected future developments, including the Company's
capacity to secure additional financing, and other factors which
management considers appropriate. With respect to the
forward-looking statements included in this press release,
management has made certain assumptions with respect to, among
other things, the Company's ability to meet its future objectives
and strategies, the Company's ability to achieve its future
projects and plans and that such projects and plans will proceed as
anticipated, the expected growth of the Company's e-commerce
revenue, the expected number and timing of store openings, entering
into new and/or expanded retail partnerships, the Company's ability
to source products, the Company's competitive position in the
vintage luxury industry, and beliefs and intentions regarding the
ownership of material trademarks and domain names used in
connection with the marketing, distribution and sale of the
Company's products as well as assumptions concerning general
economic and market growth rates, currency exchange and interest
rates and competitive intensity, notably in the context of the
current COVID-19 outbreak.
Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes, or results anticipated or implied
by such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur.
All forward-looking statements included in and incorporated into
this press release are qualified by these cautionary statements.
Unless otherwise indicated, the forward-looking statements
contained herein are made as of the date of this press release, and
except as required by applicable law, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Readers are cautioned that the actual results achieved will vary
from the information provided herein and that such variations may
be material. Consequently, there are no representations by LXR that
actual results achieved will be the same in whole or in part as
those set out in the forward-looking statements.
SOURCE LXRandCo, Inc.