Franchise Group, Inc.

[KMST]

Franchise Group, Inc. Announces Receipt of Unsolicited Proposal


DELAWARE, Ohio, March 20, 2023 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (FRG) (“Franchise Group,” “FRG” or the “Company”) today announced that it has received an unsolicited non-binding proposal, which is subject to certain conditions, to acquire all of the outstanding shares of the common stock of the Company for a price of $30.00 per share in cash.

The Board of Directors will carefully evaluate the proposal to determine the course of action that it believes is in the best interests of the Company and all FRG stockholders. The Company makes no assurance that the proposal will result in a transaction.

[KMST]

hier wird wohl weiter gesquezzed werden nach dem update. aktuell schon wieder bei $30
shorts geting smoked

- maintained the dividend.
- bought back an absolute ton of stock. 10% of the share in just one quarter.
bought back -3.7MM shares in Q4
bought back 2.2 million shares Q3
$25.68 average buyback price
$15 million in total dividend savings

- FRG pre announcing EBITDA will equal or exceed guidance.

[KMST]

Going private für 30-35$. Unter 40 wäre mir persönlich zu wenig.
Hoffen wir mal das damit nur die shorts gequezzed werden sollen.

[KMST]

Franchise Group (FRG) rose 1% on a report that its evaluating a management-led takeover. Conn Inc. (NASDAQ:CONN) jumped 15% on a report that Franchise Group may be also considering an acquisition of the furniture chain.

Franchise Group management, led by CEO Brian Kahn, may pay $30-$35 a share for the company, which is the owner of Vitamin Shoppe and other retailers, according to a WSJ report. Talks about a potential deal are said to be at an early stage.

The WSJ reported in the same article that Franchise Group (NASDAQ:FRG) is separately considering an acquisition of Conn's Inc (CONN). Conn's has a market cap of about $215 million.

Franchise Group (FRG) short interest is 21%. Conn's (CONN) short interest is 18%.

Franchise Group (FRG) was in the headlines last year after retailer Kohl's (KSS) called off talks to sell itself to the comapny.

[KMST]

I Smell Blood In The Water. Time To Own Call Options On Franchise Group

https://seekingalpha.com/article/4568271-i-smell-blood-in-wa…

Summary

Franchise Group is an extremely underpriced stock with a large short interest, and an unusually large open interest in call options.
The short thesis was, in part, based on a cut in the dividend for 2023. That thesis is busted.
The company will guide in late February, and it's likely to be a number that anyone short the stock should find pretty terrifying.
Short interest is likely coming down already, driving price action YTD. But there's just not enough time to cover before the company guides.
The large call option position amplifies the situation, with market makers having to buy the stock as a hedge whenever the price rises.

[KMST]

der größte teil des minus geht auf deckel durch umstrukturierung, non cash impairment charge, höhere zinsen und aktienrückkäufe

[KMST]

nix zum stolz drauf sein...aktienkurs der letzten wochen erklärt sich von selbst

Franchise Group, Inc. Announces Fiscal 2022 Third Quarter Financial Results
Nov. 03, 2022 4:01 PM ETFranchise Group, Inc. (FRG), FRGAP

Q3: 2022-11-03 Earnings Summary

EPS of $0.59 misses by $0.10 | Revenue of $1.05B (26.86% Y/Y) beats by $38.07M

Repurchased approximately 2.2 million shares of common stock representing over 5% of the shares outstanding
Creating Home Furnishings Division with Peter Corsa as its CEO

DELAWARE, Ohio, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (FRG) (“Franchise Group,” “FRG” or the “Company”) today announced the financial results for its fiscal 2022 third quarter. For the third quarter of fiscal 2022, total reported revenue for Franchise Group was $1.1 billion, net loss from continuing operations was $121.2 million or $3.09 per fully diluted share, Adjusted EBITDA was $73.1 million and Non-GAAP EPS was $0.59 per share. Included in net loss from continuing operations is a goodwill impairment charge of $70 million related to the Company’s American Freight Segment. On September 24, 2022, total cash on hand was approximately $72.9 million and outstanding term debt was approximately $1.1 billion.

The Company is creating a new Home Furnishing Division consisting of its American Freight, Buddy’s Home Furnishings and W.S. Badcock businesses. The division will be led by Peter Corsa, an industry veteran with a proven track record of operational excellence as the former President & COO of At Home, a value retailer of home décor products.

During the third quarter the Company repurchased approximately 2.2 million shares of its common stock for $77.9 million reducing the total shares of common stock outstanding by over 5% to 38.2 million shares.

“Please welcome Peter Corsa to FRG. Peter is perfectly aligned with FRG’s cash flow mentality and we expect him to play an invaluable role in driving best practices and synergies throughout our Home Furnishings Division, while allowing each brand to maintain its operational independence,” stated Brian Kahn, Franchise Group’s President and CEO. “Additionally, I am confident that Peter’s previous experience ramping a value retailer’s unit count, revenue, and EBITDA more than 5-fold will translate well to our American Freight brand as we seek to accelerate the growth plan for that business.”

The Company currently has six reportable segments: American Freight; The Vitamin Shoppe; Pet Supplies Plus; Buddy’s; Sylvan; and Badcock. The following table summarizes Revenue, Adjusted EBITDA, and Net Income/(Loss) for each of these segments. Reconciliations of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS to their respective most comparable GAAP measures, are included below under “Non-GAAP Financial Measures and Key Metrics.”

For the Three Months Ended For the Nine Months Ended
September 24, 2022 September 24, 2022
Adjusted Net Adjusted Net
Revenue EBITDA Income/(Loss) Revenue EBITDA Income/(Loss)
(In thousands) (In thousands)
American Freight $ 199,316 $ (4,879 ) $ (82,504 ) $ 667,157 $ 18,446 $ (81,701 )
Vitamin Shoppe 296,152 32,489 13,293 914,003 111,397 53,030
Pet Supplies Plus 323,026 27,045 10,257 926,973 78,508 29,680
Buddy's 13,160 2,631 599 42,875 11,958 5,046
Sylvan Learning 9,544 3,118 28 31,100 9,832 602
Badcock 210,278 15,342 (11,028 ) 699,835 67,565 535
Corporate - (2,671 ) (51,808 ) - (8,923 ) (75,054 )
Total $ 1,051,476 $ 73,076 $ (121,163 ) $ 3,281,943 $ 288,783 $ (67,862 )


Outlook
Franchise Group is updating its previously announced financial outlook for fiscal year 2022. The outlook for Revenue will remain at approximately $4.3 billion, outlook for Adjusted EBITDA is updated to approximately $350 million from $390 million and outlook for Non-GAAP EPS is updated to approximately $3.25 per share from $4.00 per share. In calculating EPS, the Company is using approximately 40.5 million weighted average shares outstanding. Non-GAAP EPS is calculated by adding the tax effected impact of adjustments to EBITDA to net income on a per share basis. In calculating GAAP and Non-GAAP EPS, the Company is currently using an effective tax rate of approximately 27%.

The Company does not provide a quantitative reconciliation of forward-looking, Non-GAAP financial measures such as forecasted Adjusted EBITDA or Non-GAAP EPS to the most directly comparable GAAP financial measures because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have significant impact on such calculations, and providing them may imply a degree of precision that would be confusing or potentially misleading. Estimates exclude potential acquisitions, divestitures or refranchising activities. See “Non-GAAP Financial Measures and Key Metrics.”

[AkibaBC]

Kissigs Aktien Report: Franchise Group - Ein echt aussichtsreicher Business-Transformer!?

https://www.intelligent-investieren.net/2022/10/kissigs-akti…

Zumindest auf Kissig`s Watchlist gelandet.

[KMST]

das ging hier aber wieder schnell nach oben...death cat bounce oder melt up rally vorraus?

[KMST]

das erste mal seit Jahren das Franchise eher schwache zahlen präsentiert und den Ausblick nicht erhöht sondern absenken muss...schade


Franchise Group press release (NASDAQ:FRG): Q2 Non-GAAP EPS of $1.19 misses by $0.09.

Revenue of $1.1B (+27.5% Y/Y) misses by $40M.

Adjusted EBITDA was $103.4M.

Franchise Group is updating its previously announced financial outlook for fiscal year 2022 to revenue of approximately $4.3 billion from $4.45 billion vs. consensus of $4.45B, Adjusted EBITDA to approximately $390 million from $450 million and Non-GAAP EPS to approximately $4.00 per share from $5.00 per share vs. consensus of $5.00.
In calculating GAAP and Non-GAAP EPS, the Company is currently using an effective tax rate of approximately 27%.