He is also the founder and managing partner of Kahn Capital Management, which later became Vintage Capital Management, through which the entire story of Franchise Group began. You also have the option to opt-out of these cookies. So I think we'll be opportunistic as we can be. Insider trading is most common in March, with the busiest year in 2020. WebBrian R. Kahn Managing Partner Mr. Kahn is the Managing Partner and founder of Vintage Capital Management (VCM) and its predecessor, Kahn Capital Management (KCM or All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. In calculating EPS, the Company is using approximately 34.9 million weighted average shares outstanding. The team at Franchise Group, Inc. is comprisedof former franchisors and franchisees, entrepreneurs, investors and executives. Prior to Causeway Partners, Mr. Laurence spent seven years at Triumph Capital and its successor, Washington & Congress Managers. Company Participants. WebView Brian Williams profile on LinkedIn, the worlds largest professional community. A degrading macroeconomic environment and a downgrade in guidance resulted in tremendous down-pressure being applied to the company's stock price, which is now down 37.74% year-to-date. WebBrian Randall Kahn is a businessperson who founded Kahn Capital Management LLC and Vintage Capital Management LLC and who has been at the head of 6 different Prior to joining Franchise Group, Inc., Mr. Kaminsky has held various executive and operating positions with Viavi Solutions Inc., Cobham plc and Aeroflex Holding Corp., focusing on mergers and acquisitions, their subsequent integration and driving operational efficiencies across these companies. 2023 BridgeTower Media. TVS is an omnichannel specialty health and wellness supplement retailer which is offering an assortment of nutritional solutions, including vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, and others. This documentary-style series follows investigative journalists as they uncover the truth. Ms. McMillan-McWaters has served as Deputy General Counsel of Franchise Group, Inc. since July 2, 2021, and previously served as its Assistant General Counsel from October 1, 2019. Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results and are not statements of historical fact. This is exactly where the brilliance of the strategy the company is utilizing comes under the spotlight. Learn More on Brian Randall Kahn's trading history. The multifaceted approach to creating shareholder value that Franchise Group is implementing creates difficulties in describing the true nature of the company. This leaves a somewhat negative impression when taking a look at the rapid rise in outstanding shares over the past couple of years, as potential investors might fear further dilution. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. . Good afternoon, and thank you for joining our conference call. Please dial in 5-10 minutes prior to the scheduled start time. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. Live from New WebNow, over eighteen years since the companys founding, Precision Concrete Cutting has received six patents from the U.S. Patent and Trademark Office and is a fast growing In this capacity, Ms. McMillan-McWaters managed the entirety of Liberty Taxs legal affairs including overseeing its corporate, franchise, and public company matters. Prior to joining Liberty Tax, Ms. McMillan-McWaters served as counsel for a global pharmaceutical contract research organization in Cambridge, England where her practice focused on negotiating complex services and clinical trial agreements with investigative sites in Europe. The Vitamin Shop Overview (FRG August Investor Presentation). Reports to: Eric Rubio, POS Support Manager. from Harvard University. At current market prices, the buy-back program would in theory be able to acquire close to 15 million shares, or just shy of 40% of the entire market capitalization of Franchise Group. On December 31, 2022, total cash on hand was approximately $80.8 million and outstanding term debt was approximately $1.1 billion. Prior to that Mr. Harvey served as Director of Franchise Operations for Aarons Inc. from March 2001 to June 2009. Presently, Mr. Kahn holds the position of President, Chief Executive Officer & Director at Franchise Group, Inc., President & Chief Executive Officer for Franchise Group Intermediate Holdco LLC (a subsidiary of Franchise Group, Inc.), Managing Partner at Vintage Capital Management LLC, Investment Manager at Vintage Albany Partners GP LLC and General Partner for Vintage Albany Partners LP (both are subsidiaries of Vintage Capital Management LLC) and Chairman & Chief Executive Officer for Spectrum Control, Inc. In 2001, Mr. Kaminsky co-founded and presently serves as the Chairman and Executive Director of the Greg Richards, Larry Polatsch and Scott Weingard Memorial Fund, a 9/11 not-for-profit charity. Reconciliation of Non-GAAP Net Income and EPSBelow are reconciliations of Net Income/(Loss) from continuing operations to Non-GAAP Net Income and Net Income/(Loss) from continuing operations per diluted share to Non-GAAP EPS for the three and twelve months ended December 31, 2022. Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS are financial measures that are not prepared in accordance with GAAP. Net loss was approximately $68.6 million or $1.96 per fully diluted share, vs. net revenues of $363.8 million, or $8.67 per share. Franchise Group acquired the business for $700 million in Q1 of 2021 from Sentinel Capital Partners, a private equity firm. We want to be strategic about when and how much we acquire. Prior to Coral Reef, Mr. Laurence was the Managing Partner of Causeway Partners, a Boston-based private equity group making control and structured equity investments in U.S. lower-middle market companies. ET to discuss its business and financial results for the fiscal 2022 fourth quarter and full year. They were able to recuperate around $670 million in less than six months after the transaction which were then mostly directed to deleveraging their balance sheet. The following table summarizes Revenue, Adjusted EBITDA, and Net Income/(Loss) for each of these segments. Mr. Harvey attended DeVryUniversity for Electrical Engineering. While we maintain a very bullish outlook on the company, as with any investment, the thesis itself carries its fair share of challenges. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. More keen followers might have already caught up with the fact that we are dealing with a relatively small $1.1 billion ($1.5 billion at that time) market cap that. The company has been often lately compared to Berkshire Hathaway (BRK.B) (BRK.A) in multiple ways due to the similarities in the efficient capital allocation, but there are rather obvious differences in terms of differences in approach to shareholder returns. 2023 Vintage Capital Management, LLC. This is also a small sub-thesis about American Freight being essentially a recession-resistant business, given it operates as a bargain furniture store that might have largely gone down the gutter given the recent developments. Brian Randall Kahn has not been actively trading shares of Franchise Group within the last three months. These cookies will be stored in your browser only with your consent. Mr. Kahn has serves as Chairman of the Board of Buddys Newco LLC, an operator and franchisor of rent-to-own stores under the banners of Buddys Home Furnishings, Chairman of the board of directors of API Technologies Corporation from 2011 until 2016 and White Electronic Designs Corporation from 2009 until 2010. PSP is one of the leading US pet care stores with more than 644 locations across the country, with 414 of them currently franchised. Mr. Seeton has served as the Chief Financial Officer of Franchise Group, Inc. since October 28, 2019. Kohls CEO loss is Levi Strausss gain, says retail expert, Activist Investor Looks to Oust Kohls CEO, Chairman, Kohl's stock dives after profit outlook slashed over actions to cut excess inventory, inflation pressure on middle-income customers, A Dose of Vitamin Shoppe Could Be Good for Your Portfolio, Kohl's failed takeover was just one of a wave of abandoned deals amid market volatility, Kohl's Stock Slips as Analysts Assess Its Standalone Future, Kohls Scraps Talks for Sale to Franchise Group, Panera Bread Ends IPO Deal With Danny Meyers SPAC, Kohl's Terminates Sale Talks With Franchise Group. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. So we haven't had an open window yet to speak of but, look, we will - we now have the ability to weigh, buying more of our existing businesses against buying other businesses that's not a tool that we've had in the toolbox before. Management has established a long-term dividend policy planning to redirect approximately 25% of EBITDA towards shareholders via dividends in the upcoming years. The series of successful acquisitions left the company in good relations with possible backers as well as a much better-looking balance sheet. As a matter of fact, the entire model relies upon carefully thought-through M&A execution, and such opportunities are by definition not plentiful. More keen followers might have already caught up with the fact that we are dealing with a relatively small $1.1 billion ($1.5 billion at that time) market cap that attempted to close down a deal valued at slightly more than five times its equity size. He is estimated to own roughly 30% of the entire company, which is a clear statement he fully stands behind the business, for better or worse. Mr. Kahn owns 8,864,610 shares of Franchise Group stock worth more than $246,524,804 as of March 1st. For the Three Months Ended December 31, 2022, Stock-based and long term executive compensation, Securitized accounts receivable interest income, Securitized accounts receivable bad debt reserve, Prepayment penalty on early debt repayment, Right-of-use asset and long-term asset impairment, Gain on sale-leaseback and owned properties, net, For the Twelve Months Ended December 31, 2022. The $1.1B market cap has a $500mm buy-back program approved and in place while at the same time distributing 25% of EBITDA in terms of dividends to the shareholders resulting in a 7.43% yield. Franchise Group's insider roster includes Patrick Cozza (Director), Brian Kahn (CEO), Martin Lamb (Director), and Andrew Laurence (EVP). For the fourth quarter of fiscal 2022, total reported revenue for Franchise Group was approximately $1.1 billion, net loss from continuing operations was approximately $0.7 million or $0.08 per fully diluted share, Adjusted EBITDA was approximately $65.3 million and Non-GAAP EPS was $0.47 per share. OutlookFor fiscal 2023, FRG expects to generate revenue of approximately $4.4 billion, net loss of approximately $1.4 million or $0.04 per share, Adjusted EBITDA of approximately $355 million and Non-GAAP EPS of approximately $2.90. Franchise Group chief executive officer Brian Kahn outlined why his company was interested in purchasing Kohl's. But opting out of some of these cookies may have an effect on your browsing experience. FRG finished fiscal 2022 with approximately 34.9 million shares outstanding, a reduction of shares outstanding of approximately 15% from the beginning of the fiscal year. With some back of the paper math, deploying just slightly less than $200 million of the share buy-back package would bring shares outstanding down to 35 million, lowering them by roughly 15% and almost immediately pushing the dividend yield to 8.55%. We expect organic growth in 2023 to drive increased EBITDA and cash flow.. Brian Kahn, sitting at the helm of the Franchise Group, is displaying a master class in capital allocation that turned a relatively negligible company into a formidable franchise holding conglomerate. The most recent transaction was a purchase order of 100,000 units , worth Franchise Group in early June proposed a bid of $60 per share to acquire Kohls at a roughly $8 billion valuation. 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