Author Topic: TTS - Tile Shop Holdings, Inc.  (Read 5446 times)

porcupine

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Re: TTS - Tile Shop Holdings, Inc.
« Reply #10 on: February 20, 2020, 06:54:56 AM »
For those interested in this situation, the publicly available documents filed by Bernstein Litowitz Berger & Grossmann LLP contain some great info (e.g., board considering special div in 2020, 2020 EBITDA guidance, emails between Jacullo and Kamin) within the exhibits and Plaintiffs' Opening Brief.

The Rucker resignation letter doesn't hold a candle to the emails between Jacullo and Kamin.

https://www.blbglaw.com/cases/Tile-Shop?viewDocs=1
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ragnarisapirate

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Re: TTSH - Tile Shop Holdings, Inc.
« Reply #11 on: July 08, 2020, 07:04:37 PM »
Looks like they are settling this, and the company is paying nothing. Insurance is paying 12mm in damages.

Company looks crazy cheap right now and paid of a boat load of debt last quarter. Lots of optionality; and, it is very obvious from the court filings that the company will be sold at some point.


Foreign Tuffett

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Re: TTSH - Tile Shop Holdings, Inc.
« Reply #12 on: July 10, 2020, 09:21:13 AM »
Looks like they are settling this, and the company is paying nothing. Insurance is paying 12mm in damages.

Company looks crazy cheap right now and paid of a boat load of debt last quarter. Lots of optionality; and, it is very obvious from the court filings that the company will be sold at some point.

Looking at Y/Y #s, it appears that the debt reduction is from liquidating inventory.

At 3/31/19 they had 140 stores, $50 million in debt, and $110.8 million in inventory

At 3/31/20 they had 142 stores, $37.5 million in debt, and $86.3 million in inventory
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ragnarisapirate

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Re: TTSH - Tile Shop Holdings, Inc.
« Reply #13 on: July 23, 2020, 04:12:50 PM »
Looks like they are settling this, and the company is paying nothing. Insurance is paying 12mm in damages.

Company looks crazy cheap right now and paid of a boat load of debt last quarter. Lots of optionality; and, it is very obvious from the court filings that the company will be sold at some point.

Looking at Y/Y #s, it appears that the debt reduction is from liquidating inventory.

At 3/31/19 they had 140 stores, $50 million in debt, and $110.8 million in inventory

At 3/31/20 they had 142 stores, $37.5 million in debt, and $86.3 million in inventory

If you look at year over year numbers, that would appear to be the case, but the q over q numbers indicate a different story. Especially, because the inventory wasn’t as needed due to covid. Additionally, there was more debt that they paid off, that the y over y numbers don’t reflect.

Interestingly, they just filed an 8k where they restored their executives salaries, to pre covid levels, so, I am guessing that store traffic is back. The store here in town seems very busy. Also, there are some new board members.

I am very excited to see the new q numbers. I am guessing that Kamin is working his magic.

mwtorock

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Re: TTSH - Tile Shop Holdings, Inc.
« Reply #14 on: July 24, 2020, 06:21:05 AM »

I dont know about magic :), but i have checked a few northeast stores and business is apparently better than before. People say that existing house sales got a boost from people moving out of new york so could be a short term tailwind.

ragnarisapirate

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Re: TTSH - Tile Shop Holdings, Inc.
« Reply #15 on: July 27, 2020, 03:06:33 PM »

I dont know about magic :), but i have checked a few northeast stores and business is apparently better than before. People say that existing house sales got a boost from people moving out of new york so could be a short term tailwind.
This is good, and google trends seems to indicate that traffic is back.

lemsinge

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Re: TTS - Tile Shop Holdings, Inc.
« Reply #16 on: August 19, 2020, 01:31:10 PM »
How are folks thinking about the CapEx on this one? Historically, it seems to be a pretty hefty portion of operating cash flow, and the original pre-covid guidance for this year was $10-$13mm with one expected store opening (CapEx much less than usual). Take ~$350mm in revenue for 2019 against 142 stores and that gets ~$2.5mm in revenue/store (Some are likely doing better than others). Revenue to operating cash flow conversion has fluctuated from 5% - 20% conversion based upon working capital changes, but even with the upper range on that, it seems like the ROI's on new stores is not that good in a normal environment?

Based upon q1, $4mm in maintenance CapEx seems conservative, and this looks very cheap when only factoring in maintenance CapEx. However, the company has also discussed how it sees itself as a 400 store chain. Is this still the case? Am I missing anything here?

ragnarisapirate

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Re: TTS - Tile Shop Holdings, Inc.
« Reply #17 on: August 19, 2020, 03:13:07 PM »
How are folks thinking about the CapEx on this one? Historically, it seems to be a pretty hefty portion of operating cash flow, and the original pre-covid guidance for this year was $10-$13mm with one expected store opening (CapEx much less than usual). Take ~$350mm in revenue for 2019 against 142 stores and that gets ~$2.5mm in revenue/store (Some are likely doing better than others). Revenue to operating cash flow conversion has fluctuated from 5% - 20% conversion based upon working capital changes, but even with the upper range on that, it seems like the ROI's on new stores is not that good in a normal environment?

Based upon q1, $4mm in maintenance CapEx seems conservative, and this looks very cheap when only factoring in maintenance CapEx. However, the company has also discussed how it sees itself as a 400 store chain. Is this still the case? Am I missing anything here?

For the time being, it seems like expansion is over. They are paying down debt. And with Kamin in control, capital allocation will make sense- much like it does at Calloway’s Nursery (CLWY). Additionally, in the depositions that recently occurred from the going deregistration that happened, the stated goal is to sell the company. So, we know there is a likely catalyst.

gfp

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Re: TTS - Tile Shop Holdings, Inc.
« Reply #18 on: September 01, 2020, 06:37:51 AM »
Saw this one move big this morning but can't find the news - anybody know what caused -27% move?

bci23

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Re: TTSH - Tile Shop Holdings, Inc.
« Reply #19 on: September 01, 2020, 10:13:40 AM »
Looks like they are settling this, and the company is paying nothing. Insurance is paying 12mm in damages.

Company looks crazy cheap right now and paid of a boat load of debt last quarter. Lots of optionality; and, it is very obvious from the court filings that the company will be sold at some point.

Looking at Y/Y #s, it appears that the debt reduction is from liquidating inventory.

At 3/31/19 they had 140 stores, $50 million in debt, and $110.8 million in inventory

At 3/31/20 they had 142 stores, $37.5 million in debt, and $86.3 million in inventory

If you look at year over year numbers, that would appear to be the case, but the q over q numbers indicate a different story. Especially, because the inventory wasn’t as needed due to covid. Additionally, there was more debt that they paid off, that the y over y numbers don’t reflect.

Interestingly, they just filed an 8k where they restored their executives salaries, to pre covid levels, so, I am guessing that store traffic is back. The store here in town seems very busy. Also, there are some new board members.

I am very excited to see the new q numbers. I am guessing that Kamin is working his magic.

Kamin obviously has a great track record but in a company this size i would caution that one guy cannot single-handedly just "work his magic" and immediately fix all the problems. The macro and competitive forces here in the short/medium term are much stronger than any one board members will power. A true enduring turnaround will not be linear and will take 2-3 years minimum imo.