Investor Presentation

Transcription

1 Investor Presentation June 2017

2 Safe Harbor Statement This presentation contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "anticipate", "are confident", "assumed", "believe", "continue", "could", "estimate", "expect", "intend", "may", "might", "on track", "plan", "potential", "predict", "seek", "should", or "vision", or the negative thereof or other variations thereon or comparable terminology. In particular, statements about our preliminary estimated financial results or about our outlook and assumptions for financial performance for the fiscal year ending January 27, 2018, the markets in which we operate, expected new store openings and performance, growth targets and potential growth opportunities, future capital structure, future capital expenditures and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions of future events or performance contained in this presentation are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those factors described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended January 28, 2017, as filed with the Securities and Exchange Commission ( SEC ) on April 5, 2017, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this presentation are not guarantees of future performance and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this presentation. In addition, even if our results of operations, financial condition and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this presentation, they may not be predictive of results or developments in future periods. Any forward-looking statement that we make in this presentation speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. The non-gaap financial measures contained in this presentation (including, without limitation, comparable store sales, Adjusted EBITDA, Store-level Adjusted EBITDA, pro forma adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted earnings per share) are not GAAP measures of our financial performance and should not be considered as alternatives to net income (loss) as a measure of financial performance, or any other performance measure derived in accordance with GAAP. We present Adjusted EBITDA, Adjusted EBITDA margin, Store-level Adjusted EBITDA and Store-level Adjusted EBITDA margin because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance, such as interest, depreciation, amortization, loss on extinguishment of debt and taxes, as well as costs related to new store openings, which are incurred on a limited basis with respect to any particular store when opened and are not indicative of ongoing core operating performance. We present pro forma adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted earnings per share because we believe investors understanding of our operating performance is enhanced by the disclosure of net income and earnings per diluted share adjusted for nonrecurring charges associated with events such as our initial public offering and refinancing transactions. You are encouraged to evaluate each adjustment to non-gaap financial measures and the reasons we consider it appropriate for supplemental analysis. There can be no assurance that we will not modify the presentation of our non-gaap financial measures in the future, and any such modification may be material. In addition, in evaluating Adjusted EBITDA, Store-level Adjusted EBITDA, adjusted operating income, pro forma diluted weighted average shares outstanding and pro forma adjusted net income, you should be aware that in the future, we may incur expenses similar to some of the adjustments in the presentation. Our presentation of Adjusted EBITDA, Store-level Adjusted EBITDA, pro forma adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted earnings per share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA, Store-level Adjusted EBITDA, pro forma adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted earnings per share may not be comparable to similarly titled measures used by other companies in our industry or across different industries and you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA and Store-level Adjusted EBITDA, pro forma adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted earnings per share only as supplemental information. 1

3 A Highly Differentiated Home Décor Concept with a Compelling Growth Story A specialty retailer in a big box format with unmatched breadth and depth Over 50,000 SKUs in ~115,000 square feet dedicated solely to home décor 70% of product offering is private label, unbranded or co-developed with vendors 133 stores across 32 states (1) Industry-leading profitability Compelling new store economics with targeted payback of less than two years Flexible and disciplined real estate strategy to open stores across a range of formats and markets 600+ total store potential nationwide (3) LTM Financials (2) Net Sales $805M % Growth 23% Comps 4.7% Adjusted EBITDA $146M % Margin 18% 2 (1) Store information as of June 8, (2) For the fiscal year ended January 28, Fiscal year ends January of each year. (3) Potential store opportunity based on research conducted by Buxton Company ( Buxton ).

4 Key Drivers of Differentiation and Value in Our Business Model Exceptional Management Team and Strong Corporate Culture Differentiated Concept Compelling Value Proposition Efficient Operating Model Flexible Real Estate Strategy Unmatched breadth and depth of assortment in a warehouse format Customer friendly instore experience No direct competitor Product for any room, in any style, for any budget Robust merchandising function adds ~20,000 new SKUs per year Collaboration with vendors creates customer s desired look at attractive value price points 80% of net sales occur at full price Largely self-service shopping experience Streamlined store operations Made significant investments to deliver scalable growth Successful model across different geographies, population densities and real estate locations Highly attractive store economics Systematic approach focused on driving growth and profitability while minimizing operating risk Scalable operations to support future growth 3

5 We Provide Customers With What Matters Most in Home Décor Most Important Attributes to Shoppers (1) Value of Our In-Store Experience 70% 60% At Home Delivers in 4 Top Categories ~4x Per average customer per year Frequent Store Visits (2) ~7x Per core customer per year 50% 40% 30% High Customer Intent to Shop (3) ~85% Extremely or very likely to shop at At Home again 4 20% Price Ability to see / touch / feel Selection Want to get products immediately ~ $65 Average spend per visit (includes mostly decorative accents and accessories) Unique Product Mix (1) Source: Evercore ISI Research Reports dated November 1, Copyright Evercore Group L.L.C. All rights reserved. Respondents were asked When shopping for home goods, what are the 3 most important attributes? Percentages reflect frequency of attribute included in respondents answers. Lower priority attributes appearing in less than 30% of responses include Free Shipping, Ease of returning, Brand of merchandise, Overall shopping experience, Prior experience with retailer, Brand of retailer, Salesperson, and How merchandise is displayed. (2) Based on research conducted for us by Russell Research (3) Per Russell Research survey to core customers: How likely are you to shop at each of the following stores for home décor in the next 12 months? < $15 Average price point per item

6 We Dedicate More Space to Home Décor and Combine All Key Categories Like No Other Breadth and Depth of Product Offering Example Retailers Approx. Retail Space (K Sq. Ft.) Space Dedicated to Home Décor (K Sq. Ft.) At Home Space Advantage Wall Décor & Accents Outdoor Holiday Home Textiles & Rugs Furniture Housewares ~115 ~115 Mass Merchant x-4x Home Improvement x-6x Craft x-10x Home Specialty x-10x Home Décor x-12x 5 Source: Company information, public filings, public transaction documents and management estimates

7 Strength of Model Reflected in our Momentum Convergence of Growth Factors Continue to Drive Financial Success Net Sales Store-level Adjusted EBITDA Adjusted EBITDA CAGR: 21% $766 $805 CAGR: 20% $199 $209 CAGR: 14% $138 $146 $622 $169 $115 $498 $113 $133 $82 $87 $96 $404 $364 $96 FY13 FY14 FY15 FY16 FY17 LTM % Growth (1) FY13 FY14 FY15 FY16 FY17 LTM FY13 FY14 FY15 FY16 FY17 LTM % Growth % Growth New Stores % Margin % Margin Note: $ in millions. Please refer to the reconciliation of Adjusted EBITDA and Store-level Adjusted EBITDA in the appendix. (1) FY15 contained an additional week of business. FY15 and FY16 net sales growth rates have been adjusted to exclude $7.8M in net sales earned in the 53rd week

8 A Highly Differentiated Home Décor Concept

9 Strong Customer Focus and Connectivity Every Major ethnicity represented <$50k > 1 Hour Spent in store Intent to shop Highest among 20 other home décor retailers (2) Diverse Customer Base Primarily Female 62% Married 46 Mean age $50k - $75k >$75k 27% Under 34 Core Customer: Spans Wide Income Bracket (1) 15% 85% 21% 59% Core Customer: Passionate About At Home Extremely or very likely to shop At Home again 2/3 7x Core customer shops with At Home annually Core customers increasing spending over previous year Sandy N. September 28 First time there today!!! Loved it!!! Lots and Lots of great decorations!! Developing Lafayette October 16 At Home is waaaaayy more than we even expected. Legit sensory overload! Quote of the trip: Look at the walls of pillows and all these rugs! Vicki L. September 19 I love my draperies and have had more compliments on them than I can count! They are Park Avenue silver and the silver twig bowl from At Home.LOVE! Tana B. October 19 Great new store! So many things to purchase and fresh ideas! Beth R. October 4 I love all the Halloween stuff. You re my kind of people. 8 Note: Based on research conducted for us by Russell Research and At Home Facebook page (1) 5% of survey participants were non-respondent (2) Represents customers who are aware of At Home within existing markets

10 Our Offering Addresses Every Room Opportunity to Meet Needs in One Location Clock $25 Lamp $100 Terrarium $25 Succulent $6 Wall Art $30 Plant Stand $70 Planter $10 Pillow $20 Loveseat and Table $550 Figurine $35 Pillow $20 Tray $13 Pillow $15 Chair $60 Rug $200 Table $300 Floor Vase $90 Fountain $130 Basket $35 Vases $15 Rug $150 Lantern $40 Our Merchandise Offering is Unmatched Impressive merchandise selection and unique product offerings offered at value price points Rapidly bring popular trends across categories: ~20,000 new SKUs annually, or on average ~400 new SKUs per week Out-assort other retailers of home décor products in most categories Bedroom Living Room Dining and Kitchen Bathroom Outdoor Patio and Garden 9 Note: Dining room and outdoor products shown at full retail price as of May 31, 2017, prior to regular semi-annual markdown cadence.

11 Global Country Contemporary Traditional In Any Style Merchandising That Addresses Full Range of Styles Under One Roof Eight Archetypes Across Four Core Styles Gracious Living Library Luxe Mid-Century Modern Soho Loft Vintage Weekend Getaway Boho Chic Tribal Living 10

12 Rugs Barstools Decorative Pillows For Any Budget Same Style, Similar Look, Lower Price Full Price: ~70% Less Sale Price: ~50% Less 26 Faux Mongolian Fur Throw Pillow Cover: 100% Acrylic Fill : Polyester/Polyfill Removable Cover: No Product Composition 26 Faux Mongolian Fur Throw Pillow Cover: 100% Acrylic Fill: Polyfill Removable Cover: No $89.00 (on sale $56.20) Price $24.99 Full Price: ~70% Less Manchester 30 Wood Barstool w/ 180 swivel Product Montreal 30 Wood Barstool w/ 360 swivel Sale Price: ~45% Less Birch and Top Grain Leather Composition Rubberwood and Bonded Leather $ (on sale $299.99) Price $ Full Price: ~65% Less 5' x 7' Indoor / Outdoor Rug Product 5' x 7' Indoor / Outdoor Rug Sale Price: ~60% Less Dobby Flat Weave Acrylic Fiber Composition Lightweight Value Weave with Cotton Added $ (on sale $118.95) Price $

13 We Have a Disciplined Product Development Process Develop Product Offering Sources of Inspiration Introduce ~20,000 new SKUs annually to keep assortment fresh and exciting Over 70% of our product offering is private label, unbranded or co-developed with vendors 3-9 month development process, depending on product category In-house team of merchants drives freshness and relevance Fast follower approach to mitigate risk: Source new ideas from social media, trade shows and conventions Patterned Textiles for Patio Cushions Inspired by Women s Fashion Identify 4-6 themes by archetype for the season based on emerging trends Develop theme boards and vignette layouts Bridge seasonal and everyday trends to ensure a cohesive collection 12

14 We Operate Our Stores Effectively and Efficiently Entire process designed to optimize efficiency and cost, creating value for our customers Reduce Cost Efficient Distribution & Unloading Centralize major decisions on merchandising, pricing and product assortment Cross-dock distribution center utilizes automation to support up to ~220 stores Pre-ticketed products and pre-marked store floors enable efficient unloading process Streamlined process reduces damage From Reduce Damage Special Fixtures for Wall Art To Proprietary labor model optimizes staffing levels Average 25 employees / store / week From To Driving Industry-Leading Profitability with Store-Level Adjusted EBITDA Margins of ~27% (1) 13 (1) Store-level Adjusted EBITDA margin refers to stores open more than one year as of January 28, 2017

15 We Have Built a Strong Management Team Over 150 Years of Cumulative Retail Experience Lee Bird Judd Nystrom Peter Corsa Alissa Ahlman Gary McClure Valerie Davisson Norm McLeod Ashley Sheetz Kim Ramsey Mary Jane Broussard CEO, President & Chairman Chief Financial Officer Chief Operating Officer Chief Merchandising Officer Chief Information Officer Chief People Officer Chief Development Officer Chief Marketing Officer Vice President of Inventory General Counsel

16 Growth Opportunities

17 Our Growth Opportunities Multiple Strategies to Deliver Strong Sales Growth and Profitability 1 Expand Our Store Base 2 Drive Comparable Store Sales 3 Build the At Home Brand and Create Awareness 16

18 1 Expand Store Base Significant Whitespace Opportunity with Track Record of New Store Openings Across Markets Track Record of New Store Growth Total Number of Stores at Year End FY14 FY18 YTD Openings Pre - FY14 Openings Stores 32 States FY13 FY14 FY15 FY16 FY17 FY18E % Growth 17% 19% 23% 23% 20% Whitespace Opportunity in Context (2) Competitor Store Count Full potential: 600+ (1) 133 1,332 1,023 1, Opened 20 new stores in FY2016 Opened 24 new stores in FY new store openings expected in FY Note: Fiscal year ends January of each year. At Home store information as of June 8, (1) Potential long-term store opportunity based on research conducted by Buxton Company ( Buxton ). (2) Competitor store count based on publicly available company filings and website.

19 1 Proven Market Expansion and Portability We Deliver Consistent Performance Across Various Market Sizes Large Market Mid-Level Market Small Market Cedar Park, TX (Austin MSA) Build Clive, IA Lease Toledo, OH Purchase Dallas / Fort Worth, TX Milwaukee, WI Syracuse, NY Market Examples Washington D.C. Minneapolis, MN Omaha, NE Albuquerque, NM Mobile, AL Prescott, AZ Salt Lake City, UT Charleston, SC Ann Arbor, MI Average population: >2M Average population: <1M Average population: <500k Market Average Store Performance (1) Sales: $6.9 million % EBITDA margin: ~27% Sales: $6.4 million % EBITDA margin: ~29% Sales: $5.8 million % EBITDA margin: ~27% At Home is a portable concept that produces consistent profitability across all markets 18 Source: Management estimates and Moody s Analytics (1) Represents average results for the stores open more than one year as of January 28, 2017

20 1 New Store Model Proven New Store Model Illustrated Through Strong New Store Performance Targeted New Store Model New Stores Have Demonstrated Strong Opening Performance New Store Sales Per Store (2) Year 1 Sales ~$5 million $6.0 $6.0 $6.3 4-Year Average $5.6 $4.2 Store-Level Adjusted EBITDA Margin 20%+ FY14A FY15A FY16A FY17E New Store-Level Adjusted EBITDA (4) Net Investment ~ $3 million (1) $1.5 $1.9 $2.0 4-Year Average $1.6 $1.1 Payback Period Less than 2 years 19 FY14A FY15A FY16A FY17E Note: Dollars in millions. # Leased Stores (1) Net investment includes capital spend, net working capital, pre-opening expenses and sale-leaseback proceeds. (2) Represents new store net sales within the first 12 months, including grand opening period. (3) Represents expected run rate for first 12 months of operations for stores opened in FY2017. (4) Synthetic rent assumed for all real estate purchases and ground-up builds.

21 2 Proven Track Record of Delivering Comp Store Sales Growth Annual Comp Store Sales Growth Quarterly Comp Store Sales Growth 8.3% Rebranding was a principal driver of FY15 comp lift (1) 6.4% 7.1% 5.8% 3.9% 3.7% ~3.0% 4.2% 1.9% 0.9% FY15 FY16 FY17 FY18E (2) Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Positive comparable store sales growth in the last 13 consecutive completed fiscal quarters, averaging 5.3% growth Q4 FY17 Q1 FY18 20 (1) We completed a comprehensive rebranding initiative during the first nine months of FY15, which management estimates drove as much as 500 basis points of comparable store sales growth in FY15. This estimate is based on past experience across our store base; however, the specific factors that drive comparable store sales in a particular period may not be quantifiable. (2) Represents midpoint of range of preliminary estimate of financial results. The fiscal year ending January 27, 2018 has not yet concluded and, accordingly, results of operations for such period are not yet available. Estimates contained in this presentation are forward-looking statements and may differ from actual results. The Company undertakes no duty to update the preliminary estimated financial results presented above.

22 Brand Customer Inventory Product 2 Drive Comparable Store Sales Strategic Initiatives Continue to develop on-trend products to drive broad appeal Continuously reinvent, refresh and expand product offerings Refine archetype representation within categories Good / better / best strategy accommodates varying customer demographics Cultivate inventory planning and allocation function Right products in the right store at the right time Develop direct sourcing capabilities Strengthen visual merchandising to generate in-store demand through vignettes, feature tables, end caps and signage Communicate value proposition more effectively Develop customer loyalty programs, credit card programs and CRM database Drive brand awareness through marketing, social media and community engagement Expand digital presence to drive in-store traffic 21

23 3 Building the Awareness of At Home Evolving Strategy to Create Awareness High Intent to Shop in Existing Markets (1) Unaided Brand Awareness (2) 85% 32% 72% 62% 26% 29% 44% 7% 22 (1) Per Russell Research survey to core customers: How likely are you to shop at each of the following stores for home décor in the next 12 months? (2) Source: 714 respondents across HOME markets

24 Financial Overview

25 Multiple Growth Factors Continue to Drive Financial Success Net Sales Store Count $364 $805 CAGR: +21% $766 CAGR: +21% $ $ $ FY13 FY14 FY15 FY16 FY17 LTM % Growth Store-level Adjusted EBITDA FY13 FY14 FY15 FY16 FY17 LTM New Stores Adjusted EBITDA $199 $209 $138 $146 CAGR: +20% $169 CAGR: +14% $115 $96 $113 $133 $82 $87 $96 FY13 FY14 FY15 FY16 FY17 LTM FY13 FY14 FY15 FY16 FY17 LTM Margin Margin Note: $ in millions. LTM data as of the fiscal quarter ended April 29, Please refer to the reconciliation of Adjusted EBITDA and Store-level Adjusted EBITDA in the appendix. (1) FY15 contained an additional week of business. FY15 and FY16 net sales growth rates have been adjusted to exclude $7.8M in net sales earned in the 53rd week

26 Highly Efficient and Flexible Capital Structure At Home Has Successfully Reduced Leverage 4.8 x 4.5 x 3.1 x FY2015 FY2016 Q1 FY2018 LTM Total Debt / Adjusted EBITDA (1) Focus on growing store base Disciplined approach to capital spending Financial Policy Outlook Committed to further reducing leverage over time 25 (1) Total debt includes the ABL revolving credit facility, current portion of long-term debt, long-term debt and financing obligations. Please refer to the reconciliation of Adjusted EBITDA in the appendix.

27 Continued Growth Projected in FY2018 FY2017 Highlights FY2017 FY2018E Outlook Growth Achieved 23% store growth [24 gross new stores] 12 consecutive quarters of comp store sales growth Completed IPO and repaid $130M of indebtedness Generated $62M in sale-leaseback proceeds Increased marketing spend as a % of sales for brand awareness initiative Implemented merchandise planning software Completed distribution center expansion Store Count % Net Sales $766M $906M - $913M 18% - 19% Comp Store Sales 3.7% ~ 3.0% - Pro Forma Adjusted $36.5M $46.1M - $47.5M 26% - 30% Net Income (1) Pro Forma Adjusted EPS (2) $0.59 $ $ % - 27% 26 Note: $ in millions except per share amounts (1) Projected pro forma adjusted net income excludes $10.7 million in non-cash stock-based compensation related to a special one-time IPO bonus grant. (2) Diluted weighted average shares outstanding for fiscal 2018 are expected to be approximately 63.5 million.

28 A Compelling High Growth Story Why Invest in At Home? Growth Targets (1) 1 2 Highly Differentiated Home Décor Concept Compelling Customer Value Proposition Store Growth High Teens Significant Growth Opportunities with Scalable Infrastructure Set to Support Sustainable Growth 3 Comp Sales Growth Low Single Digits Efficient Operating Model Driving Industry-Leading Profitability 4 Sales Growth High Teens Flexible and Disciplined Real Estate Strategy Supporting Attractive Store Economics 5 Operating Income Growth ~20% 6 Systematic Approach to Minimize Operational Risk Exceptional Management Team and Strong Corporate Culture 7 Net Income Growth ~25% 27 (1) These growth targets represent our goals and are not projections of future performance. These targets are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please Item 1A Risk Factors in our annual report on Form 10-K for the fiscal year ended January 28, Nothing in this presentation should be regarded as a representation by any person that these targets will be achieved, and the Company undertakes no obligation to update this information

29 28 Passionate Organization Poised for Growth

30 Appendix

31 Historical Adjusted EBITDA and Store-Level Adjusted EBITDA Reconciliation ($ in Thousands) FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 Q1 FY2018 Q1 LTM 1/26/2013 1/25/2014 1/31/2015 1/30/2016 1/28/2017 4/30/2016 4/29/2017 4/29/2017 Net (Loss)/Income (9,749) (22,283) (436) 3,574 27,066 7,326 10,049 29,789 Interest expense, net 39,837 41,152 42,382 36,759 27,174 8,193 4,886 23,867 Loss on extinguishment of debt 20, ,046 2, ,715 Income tax provision (benefit) (1,558) 59 4,357 (14,160) 15,722 4,451 6,384 17,655 Depreciation and amortization (a) 12,912 13,132 23,317 28,694 36,925 8,006 10,836 39,755 EBITDA $62,186 $32,060 $69,620 $90,913 $109,602 27,976 32, ,781 Consulting and other professional services (b) 3,609 2,874 4,633 3,506 2, ,554 3,465 Costs associated with new store openings (c) 1,070 2,023 6,848 9,801 12,035 2,522 3,959 13,472 Relocation and employee recruiting costs (d) 321 4,442 2, Management fees and expenses (e) 3,805 3,690 3,596 3,612 1, Stock-based compensation expense (f) 292 4,373 4,251 4,663 4,066 1, ,474 Stock-based compensation related to special one-time IPO bonus grant (g) , ,719 8,037 Impairment of Trade Name (h) 0 37, Non-cash rent (i) 1,730 1,367 1,795 2,398 2, ,041 Other (j) 8,567 (1,361) 1,881 (347) (90) 294 Adjusted EBITDA $81,580 $86,968 $95,552 $115,270 $138,312 33,962 41, ,685 Corporate overhead expenses (k) 14,146 25,977 37,570 53,303 60,675 15,294 17,742 63,123 Store-Level Adjusted EBITDA $95,726 $112,945 $133,122 $168,573 $198,987 49,256 59, ,808 30

32 Historical Adjusted EBITDA and Store-Level Adjusted EBITDA Reconciliation - Footnotes (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) 31 Includes the portion of depreciation and amortization expenses that are classified as cost of sales in our consolidated statements of operations. Primarily consists of (i) consulting and other professional fees with respect to projects to enhance our accounting, finance, merchandising and human resource capabilities and other public company readiness initiatives of $3.1 million, $2.2 million, $2.8 million, $3.5 million and $2.5 million for fiscal years 2013, 2014, 2015, 2016 and 2017, respectively; $1.6 million and $0.6 million during the thirteen weeks ended April 29, 2017 and April 30, 2016, respectively; and $3.5 million for the twelve months ended April 29, 2017 and (ii) litigation settlement charges and related legal fees for certain claims and legal costs for other matters relating to events that arose prior to our acquisition by our Sponsors that have concluded in the amounts of $0.5 million, $0.7 million and $1.8 million for fiscal years 2013, 2014 and 2015, respectively. Adjustments related to such items for the other periods presented were not material. Non-capital expenditures associated with opening new stores, including marketing and advertising, labor and cash occupancy expenses. We anticipate that we will continue to incur cash costs as we open new stores in the future. We opened 7, 10, 16,20 and 24 new stores in fiscal years 2013, 2014, 2015,2016, and 2017 respectively; 7 and 6 new stores during the thirteen weeks ended April 29, 2017 and April 30, 2016, respectively; and 25 new stores during the twelve months ended April 29, Primarily reflects employee recruiting and relocation costs in connection with the build-out of our management team. Reflects management fees paid to our Sponsors in accordance with our management agreement. In connection with our initial public offering, the management agreement was terminated on August 3, 2016 and our Sponsors no longer receive management fees from us. Non-cash stock-based compensation related to the ongoing equity incentive program that we have in place to incentivize and retain management. Non-cash stock-based compensation associated with a special one-time initial public offering bonus grant to senior executives, which we do not consider in our evaluation of our ongoing performance. The grant was made in addition to the ongoing equity incentive program that we have in place to incentivize and retain management and was made to reward certain senior executives for historical performance and allow them to benefit from future successful outcomes for our Sponsors. Reflects the impairment of the Garden Ridge trade name as a result of our rebranding initiative. Consists of the non-cash portion of rent, which reflects (i) the extent to which our GAAP straight-line rent expense recognized exceeds or is less than our cash rent payments, partially offset by (ii) the amortization of deferred gains on sale-leaseback transactions that are recognized to rent expense on a straight-line basis through the applicable lease term. The offsetting amounts relating to the amortization of deferred gains on sale-leaseback transactions were $(0.3) million, $(1.8) million, $(3.2) million and $(4.7) million for fiscal years 2014, 2015, 2016, and 2017, respectively; $(1.5) million and $(1.0) million during the thirteen weeks ended April 29, 2017 and April 30, 2016, respectively; and $5.2 million for the twelve months ended April 29, 2017 The GAAP straight-line rent expense adjustment can vary depending on the average age of our lease portfolio, which has been impacted by our significant growth over the last four fiscal years. For newer leases, our rent expense recognized typically exceeds our cash rent payments while for more mature leases, rent expense recognized is typically less than our cash rent payments. Other adjustments include amounts our management believes are not representative of our ongoing operations, including: for fiscal year 2013, a $5.6 million exit payment to former management; for fiscal year 2014, an insurance reimbursement of $(1.6) million and a prior year audit refund of $(0.5) million; for fiscal year 2015, asset retirements related to our rebranding of $0.6 million and $0.4 million for a store relocation; for fiscal year 2016, gain on the sale of our property in Houston, Texas of $(1.8) million and $(0.3) million related to various refunds for prior period taxes and audits, slightly offset by $0.5 million in expenses incurred for a store closure; and for fiscal year 2017, a loss of $0.3 million recognized on the sale of land in connection with the expansion of our distribution center. Reflects corporate overhead expenses, which are not directly related to the profitability of our stores, to facilitate comparisons of store operating performance as we do not consider these corporate overhead expenses when evaluating the ongoing performance of our stores from period to period. Corporate overhead expenses, which are a component of selling, general and administrative expenses, are comprised of various home office general and administrative expenses such as payroll expenses, occupancy costs, marketing and advertising, and consulting and professional fees. Store-level Adjusted EBITDA should not be used as a substitute for consolidated measures of profitability or performance because it does not reflect corporate overhead expenses that are necessary to allow us to effectively operate our stores and generate Store-level Adjusted EBITDA. We anticipate that we will continue to incur corporate overhead expenses in future periods.