LESL — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-12

• Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) per Share

• Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are additional key measures used by management and our board of directors to assess our financial performance. Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are also frequently used by analysts, inv…

• Adjusted net income (loss) is defined as net income (loss) adjusted to exclude equity-based compensation expense, executive transition costs, severance, strategic project costs, merger and acquisition costs, and other non-recurring, non-cash, or discrete items. Adjusted diluted earnings (loss) per s…

• In June 2026, the Company entered into a settlement agreement to resolve certain credit card interchange fee litigation matters in which we were a plaintiff. As a result of this settlement, we recorded a gain of $17.5 million, net of legal fees. Amounts are reported in SG&A in our consolidated state…

• Net income for the three months ended July 4, 2026 was $47.8 million compared to $21.7 million in the prior year period, an increase of $26.1 million. The change was primarily due to the change in valuation allowance in the prior year period as well as savings in SG&A in the current year period. Thi…

Text removed vs the prior filing · source: 10-Q · 2026-05-13

• Adjusted net loss and Adjusted diluted loss per share are additional key measures used by management and our board of directors to assess our financial performance. Adjusted net loss and Adjusted diluted loss per share are also frequently used by analysts, investors, and other interested parties to …

• Adjusted net loss is defined as net loss adjusted to exclude equity-based compensation expense, executive transition costs, severance, strategic project costs, merger and acquisition costs, and other non-recurring, non-cash, or discrete items. Adjusted diluted loss per share is defined as Adjusted n…

• Net loss for the three months ended April 4, 2026 was $52.5 million compared to $51.3 million in the prior year period, a decrease of $1.2 million. The change was primarily due to a tax benefit in the prior year period that was not repeated in the current year period due to the valuation allowance. …

• Adjusted net loss for the three months ended April 4, 2026 was $50.0 million compared to $48.3 million in the prior year period, an increase of $1.7 million. Adjusted net loss for the six months ended April 4, 2026 was $117.5 million compared to $91.2 million in the prior year period, an increase of…

• Adjusted EBITDA for the three months ended April 4, 2026 was $(26.8) million compared to $(36.1) million in the prior year period, an increase of $9.2 million. Adjusted EBITDA for the six months ended April 4, 2026 was $(67.1) million compared to $(65.4) million in the prior year period, a decrease …

Text added vs the prior filing · source: 10-Q · 2026-08-12

• The actions we are taking are subject to continued senior management review as well as audit committee oversight. We intend to remediate these material weaknesses as soon as possible, and we believe the measures described above will help remediate the material weakness and strengthen our internal co…

Text removed vs the prior filing · source: 10-Q · 2026-05-13

• The actions we are taking are subject to continued senior management review as well as audit committee oversight. We intend to remediate these material weaknesses as soon as possible, and we believe the measures described above will help remediate the material

• weakness and strengthen our internal control over financial reporting. The material weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We anti…

Text added vs the prior filing · source: 10-Q · 2026-08-12

• Our operating results have been harmed, and may continue to be harmed, if we are unable to effectively manage and sustain our future growth or scale our operations.

• We experienced a decline in sales, and thus profitability, beginning the fiscal year ending September 30, 2023. The current declines in our revenue and operating margins means our revenue and margin growth may be less than expected. In addition, historically, we have primarily relied on cash generat…

• If we are unable to streamline our operations effectively, our business, financial condition and results of operations may be adversely affected.

• Some of our locations have not achieved the growth and profitability we anticipated, and, from time to time, we may determine to close certain locations based on a variety of factors, including, but not limited to, geographic proximity to other stores, operating cost increases, labor costs, profitab…

• In addition, we expect to incur costs associated with the closure of underperforming locations, including charges for the impairment of long-lived assets and inventory write-offs. These costs may turn out to be greater than we expect and may adversely impact our financial condition.

Text removed vs the prior filing · source: 10-Q · 2026-05-13

• Our common stock may be delisted from The Nasdaq Global Select Market if we are unable to regain and maintain compliance with Nasdaq's continued listing standards.

• As previously disclosed, on February 11, 2026, we received notification from Nasdaq that our common stock is subject to potential delisting from The Nasdaq Global Select Market because the Company is not in compliance with Nasdaq Listing Rule 5450(b)(3)(C) because, for a period of 30 consecutive bus…

• If we do not regain and maintain compliance with the Nasdaq standards, our common stock may be delisted from Nasdaq. Any delisting of our common stock would likely adversely affect the market liquidity and market price of our common stock and our ability to obtain financing for the continuation of o…

Text added vs the prior filing · source: 10-Q · 2026-08-12

• The following disclosure is responsive to Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers of Form 8-K. On August 11, 2026, the Compensation Committee of the Company approved one-time cash rete…

• The Retention Awards were made pursuant to retention agreements which set forth the terms and conditions of the awards (the “Retention Agreements”). Among other things, the Retention Agreements require repayment of the Retention Award by the executive officer if the executive officer’s employment is…