Restoration Hardware Returning to the Stock Market

Restoration Hardware Holdings Inc. has filed to come public via an initial public offering.  The long and short is that this should :filed to come public again!”  The company’s most recent filing shows no financial terms other than that it plans to raise up to $150 million.  No stock ticker was selected, nor was an exchange selected.

Restoration Hardware agreed to a go-private management-led buyout by CEO Gary Friedman along with private equity firm Catterton Management and it was acquired on June 16, 2008, by the entity Home Holdings, LLC.  This used to trade on NASDAQ under the “RSTO” stock ticker.

The company has hired Bank of America Merrill Lynch and Goldman Sachs to lead the offering.

For the twelve months ended July 30, 2011, the company grew revenues 26% to $862.3 million over the prior twelve month period.  It also grew Adjusted EBITDA 90% to $59.9 million and grew net income by $16.5 million to a net income of $4.4 million. Stores net revenues rose 17%, comparable store sales rose 17%, and direct net revenues rose 38%.

In the first half of fiscal 2011, net revenues rose 27% to $420.4 million; Adjusted EBITDA rose 209% to $27.7 million; net income by $12.4 million to a net income of $1.1 million. Restoration’s stores net revenues rose 21%, comparable store sales rose 20%, and direct net revenues rose 36%.

The home furnishings retailer will use the proceeds “to repay all or a portion of the outstanding amounts under the Restoration Hardware, Inc. revolving line of credit, for general corporate purposes, including working capital and capital expenditures, and to pay fees and expenses incurred in connection with this offering…”  The company also noted in the use of proceeds that it would pay management fees (undisclosed sum) to Catterton, Tower Three and Glenhill “pursuant to the terms of the management services agreement we entered into with them.”

The full SEC filing is here.

JON C. OGG