Torrid Holdings Inc. (NYSE:CURV) Q4 2022 Earnings Call Transcript

Alex Straton: Thanks for taking my question today. Two from me first on SG&A, I’m trying to understand how much of the $7 million to $8 million number this quarter was unusual and how you think about that going into 2023? And then second, a bit related to the last question, it looks like cash levels are at the lowest of the year and down quite a bit year-over-year. It seems like that might be normal cadence for you, but I want to understand, is that right and kind of how you feel about cash levels at the moment? Thanks.

Tim Martin: Sure. I’ll answer your second question first. We’re very comfortable with cash levels. It is a seasonal thing as we come out of the holiday and also as we built up the inventory that we came through last year with – we paid that off. So I’m not at all concerned about cash flow or liquidity as I mentioned we have more than an ample amount of liquidity and we’ll drive the business to generate incremental cash flow throughout 2023 and we’ll focus on that cash flow on investment as a growth vehicle to primarily the store things we talked about. From a SG&A perspective in the fourth quarter, I kind of tried to address in my commentary we had about $2 million related to severance related activities. Those were included in our SG&A backed out for adjusted EBITDA.

And then we had close to $1 million associated with some non-cash write-off of some assets that we no longer were utilizing in our technology space. So those are the – looks quantities of the SG&A unusual items. I did breakout for you in my script the basis point impact of that which was 70 basis points of our increase was due to severance and 40 basis points due to the disposal of assets.

Alex Straton: Great, thanks.

Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing comments.

Lisa Harper: Thanks so much for joining us today and your interest in the company. We look forward to sharing our progress with you as the year progresses.

Tim Martin: Thank you, everyone.

Operator: This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.