Franchise Group Announces 2Q Results & Discloses Merger Plans

August 9, 2023  by HFBusiness Staff in Business Strategy, Industry   

For the second quarter of fiscal 2023, total reported revenue for Franchise Group was approximately $1.0 billion, net loss from operations was approximately $50.8 million or $1.50 per fully diluted share, Adjusted EBITDA was approximately $53.9 million and Non-GAAP EPS was a loss of $0.22 per share. 

On July 1, 2023, total cash on hand was approximately $106.3 million and outstanding term debt was approximately $1.4 billion.

The Company currently has six reportable segments: American Freight; The Vitamin Shoppe; Pet Supplies Plus; Buddy’s; Sylvan; and Badcock.

As previously disclosed, the Company entered into an Agreement and Plan of Merger with Freedom VCM, Inc., a Delaware corporation and Freedom VCM Subco, Inc., a Delaware corporation and wholly owned subsidiary of Parent, pursuant to which, upon the terms and subject to the conditions set forth therein, Merger Sub shall merge with and into the Company, with the Company surviving the merger as a wholly owned subsidiary of Parent.

On July 19, 2023, in connection with the Proposed Merger, the Company issued a notice of redemption for all outstanding shares of the Series A Preferred Stock, which is contingent upon the successful completion of the Proposed Merger.