Leslie's, Inc. Files Q1 2025 10-Q

TL;DR

Leslie's Q1 2025 10-Q is in. Financials and debt details updated.

AI Summary

Leslie's, Inc. filed its 10-Q for the period ending December 28, 2024. The filing details financial performance and operational aspects, including information related to its credit facilities and debt instruments. Specific financial metrics and ratios are presented, alongside disclosures about insurance programs and stock-based compensation.

Why It Matters

This filing provides investors with an update on Leslie's financial health and operational status, crucial for understanding the company's performance and future prospects in the retail sector.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including debt covenants and credit facilities, which can indicate financial leverage and potential risks.

Key Numbers

• 2.75:1 — First Lien Leverage Ratio Threshold (A key covenant for the Term Loan and ABL Credit Facility.)

Key Players & Entities

• Leslie's, Inc. (company) — Filer of the 10-Q
• 2024-12-28 (date) — Conformed period of report
• 2025-02-06 (date) — Filed as of date
• 0001821806 (company) — Central Index Key for Leslie's, Inc.
• ABL Credit Facility (financial_instrument) — Mentioned in relation to base rate and applicable rate
• Term Loan (financial_instrument) — Mentioned in relation to applicable rate and leverage ratios

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share LESL The Nasdaq Global Se

Filing Documents

• lesl-20241228.htm (10-Q) — 1650KB
• lesl-ex10_1.htm (EX-10.1) — 66KB
• lesl-ex31_1.htm (EX-31.1) — 18KB
• lesl-ex31_2.htm (EX-31.2) — 19KB
• lesl-ex32_1.htm (EX-32.1) — 11KB
• lesl-ex32_2.htm (EX-32.2) — 11KB
• 0000950170-25-015474.txt ( ) — 7309KB
• lesl-20241228.xsd (EX-101.SCH) — 918KB
• lesl-20241228_htm.xml (XML) — 1364KB

Financial Statements

Financial Statements 2 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Operations 3 Condensed Consolidated Statements of Stockholders' Deficit 4 Condensed Consolidated Statements of Cash Flows 5 Notes to the Unaudited Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

Signatures

Signatures 28 i Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy, legal proceedings, competitive advantages, market size, growth opportunities, industry expectations, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions. Our actual results or outcomes could differ materially from those indicated in these forward-looking statements for a variety of reasons, including, among others: our ability to execute on our growth strategies; supply disruptions; our ability to maintain favorable relationships with suppliers and manufacturers; competition from mass merchants and specialty retailers; impacts on our business from the sensitivity of our business to weather conditions, changes in the economy (including high interest rates, recession fears, and inflationary pressures), geopolitical events or conflicts, and the housing market; disruptions in the operations of our distribution centers; our ability to implement technology initiatives that deliver the anticipated benefits, without disrupting our operations; our ability to attract and retain senior management and other qualified personnel; regulatory changes and developments affecting our current and future products including evolving legal sta

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

. Financial Statements

Item 1 . Financial Statements . LESLIE'S, INC. CONDENSED Consolida ted Balance Sheets (Amounts in Thousands, Except Share and Per Share Amounts) December 28, 2024 September 28, 2024 December 30, 2023 (Unaudited) (Audited) (Unaudited) Assets Current assets Cash and cash equivalents $ 11,615 $ 108,505 $ 8,394 Accounts and other receivables, net 29,803 45,467 22,488 Inventories 271,087 234,283 334,031 Prepaid expenses and other current assets 29,117 34,179 27,131 Total current assets 341,622 422,434 392,044 Property and equipment, net 96,045 98,447 92,405 Operating lease right-of-use assets 260,835 270,488 238,296 Goodwill and other intangibles, net 214,219 215,127 217,909 Deferred tax assets 16,121 4,168 15,988 Other assets 38,151 39,661 41,878 Total assets $ 966,993 $ 1,050,325 $ 998,520 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 56,208 $ 67,622 $ 63,541 Accrued expenses and other current liabilities 71,528 106,713 69,854 Operating lease liabilities 65,063 63,357 63,078 Income taxes payable 1,180 1,127 — Current portion of long-term debt — 8,100 8,100 Total current liabilities 193,979 246,919 204,573 Operating lease liabilities, noncurrent 197,853 209,067 179,413 Revolving Credit Facility 40,000 — 38,000 Long-term debt, net 750,610 769,065 771,718 Other long-term liabilities 4,589 2,423 3,464 Total liabilities 1,187,031 1,227,474 1,197,168 Commitments and contingencies Stockholders' deficit Common stock, $ 0.001 par value, 1,000,000,000 shares authorized and 185,208,018 , 184,969,296 , and 184,513,174 , issued and outstanding as of December 28, 2024, September 28, 2024, and December 30, 2023, respectively. 185 185 184 Additional paid in capital 108,546 106,871 101,547 Retained deficit ( 328,769

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