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Tile Shop Holdings, Inc. (NASDAQ:TTS) (the “Company”), a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories, today announced results for its third quarter ended September 30, 2013.
Net sales grew 28.3% to $56.8 million for the quarter ended September 30, 2013 compared with $44.3 million for the third quarter of 2012. The $12.5 million increase in sales was driven by an increase in comparable store sales of 14.8% or $6.6 million, and incremental net sales of $5.9 million from stores not included in the comparable stores base. For the quarter, Adjusted EBITDA grew 13.0% to $12.7 million, compared to $11.2 million in the same period of the prior year.
Robert Rucker, Chief Executive Officer, commented, “Our 14.8% increase in same store sales in the quarter, following a 14.3% increase in the second quarter, provides further evidence that our customers continue to embrace our retail concept in markets throughout the country. Our broad assortment of products, room-sized displays, knowledgeable sales associates and market based pricing are proving to be a winning combination in satisfying the consumers’ need for a better home improvement shopping experience. Given these results, we are continuing to execute on our aggressive growth strategy with the opening of five new stores this quarter, bringing the total number of new stores opened in 2013 to 12. While this pace of growth also brings with it a necessary level of investment, which, as expected, has modestly impacted our current operating margins, these short-term investments will result in stronger cash flow in the coming years as these stores mature.”
During the third quarter, the Company opened three stores in new markets (Dallas, Texas; Greenwood Village, Colorado; Littleton, Colorado) and two stores in existing markets (Timonium Maryland; Skokie Illinois).
For the nine months ended September 30, 2013 net sales improved 25.9% to $171.8 million, compared with $136.5 million for the comparable period last year. Comparable-store sales growth for the nine months was 13.1%.