Arhaus Inc
For the period ended Dec 31, 2023. Filed Mar 11, 2024.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Mar 11, 2024
ARHS$14.89-0.9%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
Years Ended December 31, 2023, 2022 and 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net income | $125,239 | $136,634 | $36,932 |
| Adjustments to reconcile net income to net cash provided by operating activities | |||
| Depreciation and amortization | 29,442 | 24,901 | 23,922 |
| Amortization of operating lease right-of-use asset | 33,306 | 29,052 | — |
| Amortization of deferred financing fees and interest on finance/capital lease in excess of principal paid | 22,075 | 12,649 | 1,734 |
| Loss on extinguishment of debt | — | — | 1,450 |
| Equity based compensation | 7,909 | 4,288 | 6,383 |
| Deferred tax assets | (2,286) | 9,771 | (10,216) |
| Derivative expense associated with Term Loan exit fee | — | — | 44,544 |
| Loss on disposal of property, furniture and equipment | — | — | 466 |
| Amortization of cloud computing arrangements | 698 | — | — |
| Amortization and write-off of lease incentives | (321) | (304) | (6,112) |
| Insurance proceeds | 60 | — | — |
| Changes in operating assets and liabilities | |||
| Accounts receivable | (660) | (1,506) | 372 |
| Merchandise inventory | 32,067 | (78,076) | (100,321) |
| Prepaid and other assets | (20,721) | (6,887) | (12,294) |
| Other noncurrent liabilities | 388 | 638 | 493 |
| Accounts payable | 1,216 | 10,296 | 14,507 |
| Accrued expenses | (1,540) | 27,746 | 17,302 |
| Operating lease liabilities | (25,794) | (33,682) | — |
| Deferred rent and lease incentives | — | — | 9,870 |
| Client deposits | (28,779) | (62,342) | 110,802 |
| Net cash provided by operating activities | 172,299 | 73,178 | 139,834 |
| Cash flows from investing activities | |||
| Purchases of property, furniture and equipment | (97,055) | (51,382) | (41,461) |
| Insurance proceeds | 333 | — | — |
| Net cash used in investing activities | (96,722) | (51,382) | (41,461) |
| Cash flows from financing activities | |||
| Payments on fees associated with early extinguishment of debt | — | — | (609) |
| Repayments of related party notes | — | — | (1,000) |
| Proceeds from related party notes | — | — | 1,000 |
| Payments of debt issuance costs | — | — | (288) |
| Principal payments under capital leases | — | — | (107) |
| Principal payments under finance leases | (763) | (177) | — |
| Payment of Term Loan exit fee derivative | — | — | (64,139) |
| Payments of pre-IPO dividend to noncontrolling interests of Arhaus, LLC | — | — | (50,659) |
| Shareholder distributions | — | — | (61,915) |
| Repurchase of shares for payment of withholding taxes for equity based compensation | (1,036) | — | — |
| Proceeds from capital contribution | — | — | 2,764 |
| Proceeds from issuance of Class A common stock sold in IPO, net of underwriting costs | — | — | 157,258 |
Consolidated Statements of Cash Flows (continued)
Years Ended December 31, 2023, 2022 and 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Payments of offering costs | — | — | (5,907) |
| Distributions to noncontrolling interest holders | — | — | (7,865) |
| Net cash used in financing activities | (1,799) | (177) | (31,467) |
| Net increase in cash, cash equivalents and restricted cash | 73,778 | 21,619 | 66,906 |
| Cash, cash equivalents and restricted cash | |||
| Beginning of year | 152,527 | 130,908 | 64,002 |
| End of year | $226,305 | $152,527 | $130,908 |
| Supplemental disclosure of cash flow information | |||
| Interest paid in cash | $5,301 | $5,155 | $5,121 |
| Interest received in cash | 8,778 | 1,373 | — |
| Income taxes paid in cash | 47,132 | 34,943 | 1,403 |
| Noncash investing activities: | |||
| Purchase of property, furniture and equipment in accounts payable | 6,726 | 6,878 | 9,056 |
| Noncash financing activities: | |||
| Conversion of units of Arhaus, LLC to shares of Arhaus, Inc. | — | — | 124 |
| Contribution of deferred tax asset from wholly owned subsidiary | — | — | 17,436 |
| Capital contribution from CEO related to long-tenured employee award | — | — | 4,551 |
| Capital contribution from CEO for deferred compensation plan | — | — | 3,872 |
| Adjustment to deferred tax asset impact of Reorganization from partnership to a corporation | (1,625) | (1,072) | — |
| Derecognition of build-to-suit assets as a result of ASC 842 adoption | — | (31,017) | — |
| Property, furniture and equipment additions due to build-to-suit lease transactions | — | — | 31,017 |
| Capital contributions | 56 | 80 | — |
| Capital lease obligation | — | — | 2,591 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.