QualityStocks would like to highlight JWC Acquisition Corp. (OTCBB: JWCAU), a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination involving JWC Acquisition Corp. and one or more businesses.
In the company’s news yesterday,
JWC Acquisition Corp. and The Tile Shop, LLC, a specialty retailer of manufactured and natural stone tiles and related accessories, announced their agreement to combine business under a new holding company, Tile Shop Holdings Inc., which intends to apply for listing on the Nasdaq Stock Market under the symbol “TTS” upon the closing of the business combination.
The Tile Shop currently operates 61 specialty retail stores in 20 states, with eight of the stores opened in 2012. Through its merger with JWC, The Tile Shop says it is positioned to leverage greater access to capital to further execute on its profitable long-term growth strategy. The company intends to open an additional five stores in the remainder of 2012 and expects to open no less than 15 stores in 2013.
“This transaction marks the next step in The Tile Shop’s evolution into the leading North American specialty retailer of tile. As a public company, we not only will continue with our self-funded store growth across the country, but also be better positioned to take advantage of additional resources to accelerate our growth as the demand for our products increases,” Bob Rucker, CEO and founder of The Tile Shop, stated in the press release. “The agreement with JWC Acquisition Corp. supports our ability to pursue attractive growth opportunities in both current and new markets. As we continue to expand and gain market share in this highly-fragmented market, we should be able to increase both sales and cash flow, which will enhance our profitability over time.”
The Tile Shop has thus far demonstrated its ability to mature, as represented by store expansion and revenue growth. The company reported net sales of $152.7 million for the year ended December 31, 2011, an increase of 12.8 percent vs. $135.3 million in 2010. Adjusted EBITDA of $42.6 million represents an increase of 10.7 percent vs. $38.5 million in 2010.
From 2007 through 2011, The Tile Shop has achieved net sales and Adjusted EBITDA increases at compounded annual growth rates of 8.2 percent and 13.3 percent, respectively, driven by new retail locations and increases in same store sales.
The Tile Shop’s net sales for the quarter ended March 31, 2012, increased 21.1 percent to $45.9 million compared to $37.9 million in the first quarter of 2011.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
