第99.1展示文本
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sleep number宣佈2024年第三季度業績
公司還宣佈主席、總裁和首席執行官Shelly Ibach將退休
•第三季度報告的淨銷售額爲42700萬美元; 季度調整後的EBITDA爲2800萬美元，符合預期
•第三季度實現毛利率爲60.8%，比去年增加340個點子，超出預期，並且是自2021年第三季度以來最高的季度毛利率。
•第三季度營業費用減少了1700萬美元，截至目前爲止本年度減少了6000萬美元（不包括重組成本）
•與去年同期相比，今年截至目前爲止的自由現金流增加了5000萬美元
•將2024年全年調整後的EBITDA預期更新爲11500萬至12500萬美元的修訂區間
明尼阿波利斯 -（2024年10月30日）- Sleep Number Corporation（納斯達克：SNBR）今天公佈了截至2024年9月28日的季度業績報告。
過去一年來,我們在整個業務中的舉措正在推動可持續的運營模式改善，併爲我們提高的財務靈活性和耐用性做出貢獻。我們的舉措推動了廣泛的成本效益和毛利率提升至60.8%，導致第三季度調整後的EBITDA爲2800萬美元,這一結果符合預期，即使面臨持續的消費者需求疲軟。”雪莉·伊巴贊said Chairman、總裁兼首席執行官。「與此同時,我們繼續利用我們的創新優勢，爲客戶提供改變生活的睡眠解決方案，例如我們的新ClimateCool™智能牀。」
「在任職期間，我們團隊對我們的使命、受人喜愛的品牌和開創性的智能牀鋪的承諾，都給我帶來了啓發，這些牀鋪能提供經過驗證的優質睡眠，」 Ibach 補充道。「隨着我步入養老生活，我們才華橫溢的團隊和強大的競爭優勢，加上我們增強的財務韌性，讓我對 Sleep Number 持續的市場領導地位和在行業需求恢復時爲所有利益相關者加速盈利增長和價值創造的能力充滿信心。」
第三季度概況
•淨銷售額 $42700萬的銷售額同比去年下降10％，其中大約有兩個百分點的壓力來自年度訂單積壓變化，還有一個百分點的壓力來自門店數量較去年減少
•毛利率 60.8%的毛利率較去年同比提高340個點子，這是由於通過價值工程和持續供應商談判實現了產品成本的年度降低，有利的產品組合，以及在我們的送貨上門和物流運營中的效率提升
•營業費用24900萬美元（在重組費用之前）較上年同期減少了1700萬美元，年初至今的營業費用在重組費用之前減少了6000萬美元
•調整後EBITDA2800萬美元的利潤同比去年增長11%，調整後的EBITDA利潤率爲6.5%，比去年增加了120個點子
sleep number宣佈2024年第三季度業績-第2頁，共12頁
現金流量審查
•經營活動產生的現金流量淨額 本年前九個月的收入爲5100萬元，比去年同期增加1900萬元，增幅達60%。
•自由現金流年初九個月的自由現金流爲3400萬美元，比去年同期增加5000萬美元
•槓桿率 第三季末的EBITDAR倍數爲4.2倍，而該季度的契約最大值爲5.0倍。
財務展望
由於寢具行業的持續疲軟，該公司已更新其2024年全年調整後的EBITDA預期，調整後的區間爲11500萬至12500萬美元。公司預計2024年全年淨銷售額將下降約10%，與年初至今的淨銷售表現一致。公司的展望包括至少提高全年毛利率150個點子。公司預計全年將實現自由現金流1000萬至2000萬美元，並計劃在全年資本支出約2500萬美元左右。
CEO退休和董事會以及治理變化
今天公司另行發佈了以下內容:
•Ibach將在2025年股東大會（「2025年股東大會」）之前退休，此前將由獨立的高管搜索公司進行全面搜索以確定她的繼任者。
•2025年年度股東大會上，Ibach將不再尋求連任董事會成員，屆時，董事會打算任命Michael J. Harrison爲獨立董事會主席。
•董事會打算縮小規模，兩位任職時間較長的董事將在2026年年度股東大會前後退休
•董事會打算修訂公司的管理文件，並請求股東批准在2025年年會上開始解除董事會的分類，並採用多數表決標準，以批准合併和對公司章程的修訂
電話會議信息
管理層將在今天下午5點（東部時間4點；中部時間3點）舉行定期的電話會議，討論公司的業績。要訪問網絡直播，請訪問sleep number網站的投資者關係區域。 https://ir.sleepnumber.com. 網絡直播重播將保持大約60天。我們還在sleep number網站的投資者關係區域發佈了更新後的投資者演示。
sleep number宣佈2024年第三季度業績 - 第3頁，共12頁
關於sleep number公司
sleep number是一家健康科技公司。我們的目標是通過提高睡眠質量來改善社會的健康和福祉；迄今爲止，我們的創新已經改善了近1600萬人的生活。我們的健康科技平台有助於解決睡眠問題，無論是通過我們的Climate360爲每位睡眠者提供個性化的溫度控制，還是將我們的290億小時的縱向睡眠數據和專業知識應用於與全球機構的研究。® 智能牀或應用我們超過290億小時的睡眠數據和專業知識與全球機構進行研究。
我們的智能牀生態系統通過動態、可調節、輕鬆的睡眠，以及個性化的數字睡眠和健康見解，實現卓越的參與度；我們數百萬的智能睡眠者是忠誠的品牌倡導者。我們有3700名使命驅動團隊成員，熱情創新，通過我們垂直一體化的業務模式創造價值，包括我們獨家的直銷模式，幾乎覆蓋了650家門店和在線渠道。
要了解更多關於改變生活、個性化睡眠的信息，請訪問sleep number® 在您附近的商店，我們的 要了解更多關於我們的信息，請訪問我們的新聞室。和頁面。投資者關係網站。 網站，或 SleepNumber.com
前瞻性聲明
本新聞稿中使用的關於未來計劃、事件、財務結果或表現的陳述，如公司正在推動可持續的運營模型改進，爲增加的財務靈活性和耐久性做出貢獻，並繼續利用其創新優勢爲客戶提供改變生活的睡眠方案，併爲所有利益相關者在需求恢復時實現持續市場領導地位、加速盈利增長和價值創造的陳述；關於公司財務展望的陳述，包括公司預期的2024年調整後息稅折舊攤銷前利潤和未來淨銷售、需求、毛利率和自由現金流預期；以及關於公司CEO和董事會退休以及治理變革的陳述均爲前瞻性陳述，受某些風險和不確定性影響，可能導致公司的結果出現重大差異。最重要的風險和不確定性在公司向證券交易委員會提交的文件中有描述，包括在公司年度報告第10-k表格中的第1A項目及其他定期報告中。前瞻性陳述僅在其發表之日起生效，公司不承諾更新任何前瞻性陳述。
Investor Contact: Dave Schwantes; (763) 551-7498; investorrelations@sleepnumber.com
Media Contact: Julie Elepano; (414) 732-9840; julie.elepano@sleepnumber.com
Sleep Number Announces Third-quarter 2024 Results - Page 4 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited – in thousands, except per share amounts)
| Three Months Ended | |||||||||||||||||||||||
| September 28, 2024 | % of Net Sales | September 30, 2023 | % of Net Sales | ||||||||||||||||||||
| Net sales | $ | 426,617 | 100.0 | % | $ | 472,648 | 100.0 | % | |||||||||||||||
| Cost of sales | 167,089 | 39.2 | % | 201,537 | 42.6 | % | |||||||||||||||||
| Gross profit | 259,528 | 60.8 | % | 271,111 | 57.4 | % | |||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing | 205,480 | 48.2 | % | 221,143 | 46.8 | % | |||||||||||||||||
| General and administrative | 33,070 | 7.8 | % | 31,948 | 6.8 | % | |||||||||||||||||
| Research and development | 10,583 | 2.5 | % | 12,633 | 2.7 | % | |||||||||||||||||
| Restructuring costs | 1,963 | 0.5 | % | — | 0.0 | % | |||||||||||||||||
| Total operating expenses | 251,096 | 58.9 | % | 265,724 | 56.2 | % | |||||||||||||||||
| Operating income | 8,432 | 2.0 | % | 5,387 | 1.1 | % | |||||||||||||||||
| Interest expense, net | 12,057 | 2.8 | % | 10,958 | 2.3 | % | |||||||||||||||||
| Loss before income taxes | (3,625) | (0.8 | %) | (5,571) | (1.2 | %) | |||||||||||||||||
| Income tax benefit | (489) | (0.1 | %) | (3,253) | (0.7 | %) | |||||||||||||||||
| Net loss | $ | (3,136) | (0.7 | %) | $ | (2,318) | (0.5 | %) | |||||||||||||||
| Net loss per share – basic | $ | (0.14) | $ | (0.10) | |||||||||||||||||||
| Net loss per share – diluted | $ | (0.14) | $ | (0.10) | |||||||||||||||||||
| Reconciliation of weighted-average shares outstanding: | |||||||||||||||||||||||
| Basic weighted-average shares outstanding | 22,643 | 22,479 | |||||||||||||||||||||
| Dilutive effect of stock-based awards | — | — | |||||||||||||||||||||
| Diluted weighted-average shares outstanding | 22,643 | 22,479 | |||||||||||||||||||||
For the three months ended September 28, 2024 and September 30,2023, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.
Sleep Number Announces Third-quarter 2024 Results - Page 5 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited – in thousands, except per share amounts)
| Nine Months Ended | |||||||||||||||||||||||
| September 28, 2024 | % of Net Sales | September 30, 2023 | % of Net Sales | ||||||||||||||||||||
| Net sales | $ | 1,305,479 | 100.0 | % | $ | 1,457,964 | 100.0 | % | |||||||||||||||
| Cost of sales | 528,287 | 40.5 | % | 612,343 | 42.0 | % | |||||||||||||||||
| Gross profit | 777,192 | 59.5 | % | 845,621 | 58.0 | % | |||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing | 596,392 | 45.7 | % | 649,410 | 44.5 | % | |||||||||||||||||
| General and administrative | 111,722 | 8.6 | % | 111,144 | 7.6 | % | |||||||||||||||||
| Research and development | 34,602 | 2.7 | % | 42,521 | 2.9 | % | |||||||||||||||||
| Restructuring costs | 14,382 | 1.1 | % | — | 0.0 | % | |||||||||||||||||
| Total operating expenses | 757,098 | 58.0 | % | 803,075 | 55.1 | % | |||||||||||||||||
| Operating income | 20,094 | 1.5 | % | 42,546 | 2.9 | % | |||||||||||||||||
| Interest expense, net | 36,626 | 2.8 | % | 30,008 | 2.1 | % | |||||||||||||||||
| (Loss) income before income taxes | (16,532) | (1.3 | %) | 12,538 | 0.9 | % | |||||||||||||||||
| Income tax (benefit) expense | (863) | (0.1 | %) | 2,637 | 0.2 | % | |||||||||||||||||
| Net (loss) income | $ | (15,669) | (1.2 | %) | $ | 9,901 | 0.7 | % | |||||||||||||||
| Net (loss) income per share – basic | $ | (0.69) | $ | 0.44 | |||||||||||||||||||
| Net (loss) income per share – diluted | $ | (0.69) | $ | 0.44 | |||||||||||||||||||
| Reconciliation of weighted-average shares outstanding: | |||||||||||||||||||||||
| Basic weighted-average shares outstanding | 22,588 | 22,412 | |||||||||||||||||||||
| Dilutive effect of stock-based awards | — | 146 | |||||||||||||||||||||
| Diluted weighted-average shares outstanding | 22,588 | 22,558 | |||||||||||||||||||||
For the nine months ended September 28, 2024, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.
Sleep Number Announces Third-quarter 2024 Results - Page 6 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited – in thousands, except per share amounts)
subject to reclassification
| September 28, 2024 | December 30, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,592 | $ | 2,539 | |||||||
Accounts receivable, net of allowances of $1,134 and $1,437, respectively | 17,026 | 26,859 | |||||||||
| Inventories | 93,039 | 115,433 | |||||||||
| Prepaid expenses | 17,827 | 16,660 | |||||||||
| Other current assets | 40,784 | 44,637 | |||||||||
| Total current assets | 170,268 | 206,128 | |||||||||
| Non-current assets: | |||||||||||
| Property and equipment, net | 140,406 | 179,503 | |||||||||
| Operating lease right-of-use assets | 367,133 | 395,411 | |||||||||
| Goodwill and intangible assets, net | 66,468 | 66,634 | |||||||||
| Deferred income taxes | 27,267 | 20,253 | |||||||||
| Other non-current assets | 93,109 | 82,951 | |||||||||
| Total assets | $ | 864,651 | $ | 950,880 | |||||||
| Liabilities and Shareholders’ Deficit | |||||||||||
| Current liabilities: | |||||||||||
| Borrowings under revolving credit facility | $ | 516,500 | $ | 539,500 | |||||||
| Accounts payable | 127,990 | 135,901 | |||||||||
| Customer prepayments | 43,514 | 49,143 | |||||||||
| Accrued sales returns | 19,688 | 22,402 | |||||||||
| Compensation and benefits | 28,909 | 28,273 | |||||||||
| Taxes and withholding | 17,685 | 17,134 | |||||||||
| Operating lease liabilities | 82,488 | 81,760 | |||||||||
| Other current liabilities | 57,268 | 61,958 | |||||||||
| Total current liabilities | 894,042 | 936,071 | |||||||||
| Non-current liabilities: | |||||||||||
| Operating lease liabilities | 318,665 | 351,394 | |||||||||
| Other non-current liabilities | 100,728 | 105,343 | |||||||||
| Total non-current liabilities | 419,393 | 456,737 | |||||||||
| Total liabilities | 1,313,435 | 1,392,808 | |||||||||
| Shareholders’ deficit: | |||||||||||
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding | — | — | |||||||||
Common stock, $0.01 par value; 142,500 shares authorized, 22,371 and 22,235 shares issued and outstanding, respectively | 224 | 222 | |||||||||
| Additional paid-in capital | 25,527 | 16,716 | |||||||||
| Accumulated deficit | (474,535) | (458,866) | |||||||||
| Total shareholders’ deficit | (448,784) | (441,928) | |||||||||
| Total liabilities and shareholders’ deficit | $ | 864,651 | $ | 950,880 | |||||||
Sleep Number Announces Third-quarter 2024 Results - Page 7 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited – in thousands)
subject to reclassification
| Nine Months Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net (loss) income | $ | (15,669) | $ | 9,901 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 50,379 | 55,196 | |||||||||
| Stock-based compensation | 9,541 | 10,872 | |||||||||
| Net loss on disposals and impairments of assets | 2,457 | 464 | |||||||||
| Deferred income taxes | (7,014) | (13,433) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 9,833 | 7,374 | |||||||||
| Inventories | 22,394 | (2,190) | |||||||||
| Income taxes | 1,708 | 3,571 | |||||||||
| Prepaid expenses and other assets | (8,012) | (5,903) | |||||||||
| Accounts payable | 4,980 | 5,199 | |||||||||
| Customer prepayments | (5,629) | (27,279) | |||||||||
| Accrued compensation and benefits | 788 | (6,923) | |||||||||
| Other taxes and withholding | (1,157) | 5 | |||||||||
| Other accruals and liabilities | (13,775) | (5,038) | |||||||||
| Net cash provided by operating activities | 50,824 | 31,816 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (17,218) | (48,022) | |||||||||
| Proceeds from sales of property and equipment | 156 | 10 | |||||||||
| Issuance of notes receivable | (2,942) | (1,317) | |||||||||
| Net cash used in investing activities | (20,004) | (49,329) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net (decrease) increase in short-term borrowings | (31,039) | 20,334 | |||||||||
| Repurchases of common stock | (728) | (3,711) | |||||||||
| Proceeds from issuance of common stock | — | 428 | |||||||||
| Net cash (used in) provided by financing activities | (31,767) | 16,627 | |||||||||
| Net decrease in cash and cash equivalents | (947) | (886) | |||||||||
| Cash and cash equivalents, at beginning of period | 2,539 | 1,792 | |||||||||
| Cash and cash equivalents, at end of period | $ | 1,592 | $ | 906 | |||||||
Sleep Number Announces Third-quarter 2024 Results - Page 8 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Supplemental Financial Information
(unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||||||||
| Percent of sales: | |||||||||||||||||||||||
| Retail stores | 87.8 | % | 86.6 | % | 87.9 | % | 87.1 | % | |||||||||||||||
| Online, phone, chat and other | 12.2 | % | 13.4 | % | 12.1 | % | 12.9 | % | |||||||||||||||
| Total Company | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Sales change rates: | |||||||||||||||||||||||
| Retail comparable-store sales | (7 | %) | (14 | %) | (9 | %) | (11 | %) | |||||||||||||||
| Online, phone and chat | (18 | %) | (14 | %) | (17 | %) | (13 | %) | |||||||||||||||
| Total Retail comparable sales change | (9 | %) | (14 | %) | (10 | %) | (11 | %) | |||||||||||||||
Net opened/closed stores and other | (1 | %) | 1 | % | 0 | % | 1 | % | |||||||||||||||
| Total Company | (10 | %) | (13 | %) | (10 | %) | (10 | %) | |||||||||||||||
| Stores open: | |||||||||||||||||||||||
| Beginning of period | 646 | 672 | 672 | 670 | |||||||||||||||||||
| Opened | 1 | 8 | 11 | 27 | |||||||||||||||||||
| Closed | (4) | (2) | (40) | (19) | |||||||||||||||||||
| End of period | 643 | 678 | 643 | 678 | |||||||||||||||||||
| Other metrics: | |||||||||||||||||||||||
Average sales per store ($ in 000's) 1 | $ | 2,670 | $ | 2,952 | |||||||||||||||||||
Average sales per square foot 1 | $ | 863 | $ | 963 | |||||||||||||||||||
Stores > $2 million net sales 2 | 60 | % | 67 | % | |||||||||||||||||||
Stores > $3 million net sales 2 | 20 | % | 27 | % | |||||||||||||||||||
Average revenue per smart bed unit 3 | $ | 5,771 | $ | 5,640 | $ | 5,778 | $ | 5,822 | |||||||||||||||
1 Trailing twelve months Total Retail comparable sales per store open at least one year.
2 Trailing twelve months for stores open at least one year (excludes online, phone and chat sales).
3 Represents Total Retail (stores, online, phone and chat) net sales divided by Total Retail smart bed units.
Sleep Number Announces Third-quarter 2024 Results - Page 9 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)
(in thousands)
We define earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) as net income plus: income tax expense, interest expense, depreciation and amortization, stock-based compensation, restructuring costs and asset impairments. Management believes Adjusted EBITDA is a useful indicator of our financial performance and our ability to generate cash from operating activities. Our definition of Adjusted EBITDA may not be comparable to similarly titled definitions used by other companies. The table below reconciles Adjusted EBITDA, which is a non-GAAP financial measure, to the comparable GAAP financial measure:
| Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||||||||
| Net (loss) income | $ | (3,136) | $ | (2,318) | $ | (40,857) | $ | 4,471 | |||||||||||||||
| Income tax (benefit) expense | (489) | (3,253) | (7,966) | 1,346 | |||||||||||||||||||
| Interest expense | 12,057 | 10,958 | 49,313 | 37,641 | |||||||||||||||||||
| Depreciation and amortization | 15,859 | 18,200 | 67,335 | 72,338 | |||||||||||||||||||
| Stock-based compensation | 1,432 | 982 | 13,523 | 15,511 | |||||||||||||||||||
Restructuring costs 1 | 1,963 | — | 30,110 | — | |||||||||||||||||||
| Asset impairments | — | 292 | 198 | 491 | |||||||||||||||||||
| Adjusted EBITDA | $ | 27,686 | $ | 24,861 | $ | 111,656 | $ | 131,798 | |||||||||||||||
1 Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023.
Free Cash Flow
(in thousands)
| Nine Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 50,824 | $ | 31,816 | $ | 9,980 | $ | (12,168) | |||||||||||||||
| Subtract: Purchases of property and equipment | 17,218 | 48,022 | 26,252 | 64,668 | |||||||||||||||||||
| Free cash flow | $ | 33,606 | $ | (16,206) | $ | (16,272) | $ | (76,836) | |||||||||||||||
Note - Our Adjusted EBITDA calculations and Free Cash Flow data are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.
GAAP - generally accepted accounting principles in the U.S.
Sleep Number Announces Third-quarter 2024 Results - Page 10 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Calculation of Net Leverage Ratio under Revolving Credit Facility
(in thousands)
Our calculation of Net Leverage Ratio under Revolving Credit Facility was changed effective with the amendment of our credit facility on November 2, 2023. Prior to the amendment, the calculation included capitalized operating lease obligations based on a multiple of six times annual rent expense. The amendment replaced this line item with operating lease liabilities included in our financial statements under ASC 842. The calculations in accordance with the November 2, 2023 amendment are presented below. The prior year is presented in conformity with the November 2, 2023 amendment.
| Trailing Twelve Months Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||
| Borrowings under revolving credit facility | $ | 516,500 | $ | 488,000 | |||||||
| Outstanding letters of credit | 7,147 | 7,147 | |||||||||
| Finance lease obligations | 261 | 338 | |||||||||
| Consolidated funded indebtedness | $ | 523,908 | $ | 495,485 | |||||||
Operating lease liabilities 1 | 401,153 | 439,722 | |||||||||
| Total debt including operating lease liabilities (a) | $ | 925,061 | $ | 935,207 | |||||||
| Adjusted EBITDA (see above) | $ | 111,656 | $ | 131,798 | |||||||
| Consolidated rent expense | 108,863 | 113,204 | |||||||||
| Consolidated EBITDAR (b) | $ | 220,519 | $ | 245,002 | |||||||
| Net Leverage Ratio under revolving credit facility (a divided by b) | 4.2 to 1.0 | 3.8 to 1.0 | |||||||||
1Reflects operating lease liabilities included in our financial statements under ASC 842. The prior period has been updated to reflect this calculation.
Note - Our Net Leverage Ratio under Revolving Credit Facility, Adjusted EBITDA and EBITDAR calculations are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.
GAAP - generally accepted accounting principles in the U.S.
Sleep Number Announces Third-quarter 2024 Results - Page 11 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Calculation of Return on Invested Capital (Adjusted ROIC)
(in thousands)
Adjusted ROIC is a financial measure we use to determine how efficiently we deploy our capital. It quantifies the return we earn on our adjusted invested capital. Management believes Adjusted ROIC is also a useful metric for investors and financial analysts. We compute Adjusted ROIC as outlined below. Our definition and calculation of Adjusted ROIC may not be comparable to similarly titled definitions and calculations used by other companies. The tables below reconcile adjusted net operating profit after taxes (Adjusted NOPAT) and total adjusted invested capital, which are non-GAAP financial measures, to the comparable GAAP financial measures:
| Trailing Twelve Months Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||
| Adjusted net operating profit after taxes (Adjusted NOPAT) | |||||||||||
| Operating income | $ | 490 | $ | 43,458 | |||||||
Add: Operating lease interest 1 | 27,371 | 27,497 | |||||||||
Less: Income taxes 2 | (5,474) | (1,168) | |||||||||
| Adjusted NOPAT | $ | 22,387 | $ | 69,787 | |||||||
| Average adjusted invested capital | |||||||||||
| Total deficit | $ | (448,784) | $ | (420,687) | |||||||
Add: Long-term debt 3 | 516,761 | 488,338 | |||||||||
Add: Operating lease liabilities 4 | 401,153 | 439,722 | |||||||||
| Total adjusted invested capital at end of period | $ | 469,130 | $ | 507,373 | |||||||
Average adjusted invested capital 5 | $ | 502,494 | $ | 469,782 | |||||||
Adjusted ROIC 6 | 4.5 | % | 14.9 | % | |||||||
| 1 | Represents the interest expense component of lease expense included in our financial statements under ASC 842, Leases. | ||||
| 2 | Reflects annual effective income tax rates, before discrete adjustments, of 19.6% and 1.6% for September 28, 2024 and September 30, 2023, respectively. | ||||
| 3 | Long-term debt includes existing finance lease liabilities. | ||||
| 4 | Reflects operating lease liabilities included in our financial statements under ASC 842. | ||||
| 5 | Average adjusted invested capital represents the average of the last five fiscal quarters' ending adjusted invested capital balances. | ||||
| 6 | Adjusted ROIC equals Adjusted NOPAT divided by average adjusted invested capital. | ||||
| Note - The Company's Adjusted ROIC calculation and data are considered non-GAAP financial measures and are not in accordance with, or preferable to, GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts. The Company updated its Adjusted ROIC calculation effective beginning with the reporting period ended December 31, 2022, to reflect adjustments consistent with ASC 842. | |||||
| GAAP - generally accepted accounting principles in the U.S. | |||||
Sleep Number Announces Third-quarter 2024 Results - Page 12 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Reported to Adjusted Statements of Operations Data Reconciliation
(in thousands, except per share amounts)
| Three Months Ended | |||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||||||||||||||
| As Reported | Restructuring Costs 1,2 | As Adjusted | As Reported | ||||||||||||||||||||
| Operating income | $ | 8,432 | $ | 1,963 | $ | 10,395 | $ | 5,387 | |||||||||||||||
| Interest expense, net | 12,057 | — | 12,057 | 10,958 | |||||||||||||||||||
| Loss before income taxes | (3,625) | 1,963 | (1,662) | (5,571) | |||||||||||||||||||
| Income tax (benefit) expense | (489) | 465 | (24) | (3,253) | |||||||||||||||||||
| Net loss | $ | (3,136) | $ | 1,498 | $ | (1,638) | $ | (2,318) | |||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||
| Basic | $ | (0.14) | $ | 0.07 | $ | (0.07) | $ | (0.10) | |||||||||||||||
| Diluted | $ | (0.14) | $ | 0.07 | $ | (0.07) | $ | (0.10) | |||||||||||||||
| Basic Shares | 22,643 | 22,643 | 22,643 | 22,479 | |||||||||||||||||||
| Diluted Shares | 22,643 | 22,643 | 22,643 | 22,479 | |||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||||||||||||||
| As Reported | Restructuring Costs 1,2 | As Adjusted | As Reported | ||||||||||||||||||||
| Operating income | $ | 20,094 | $ | 14,382 | $ | 34,476 | $ | 42,546 | |||||||||||||||
| Interest expense, net | 36,626 | — | 36,626 | 30,008 | |||||||||||||||||||
| (Loss) income before income taxes | (16,532) | 14,382 | (2,150) | 12,538 | |||||||||||||||||||
| Income tax (benefit) expense | (863) | 3,409 | 2,546 | 2,637 | |||||||||||||||||||
| Net (loss) income | $ | (15,669) | $ | 10,973 | $ | (4,696) | $ | 9,901 | |||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||
| Basic | $ | (0.69) | $ | 0.49 | $ | (0.20) | $ | 0.44 | |||||||||||||||
| Diluted | $ | (0.69) | $ | 0.49 | $ | (0.20) | $ | 0.44 | |||||||||||||||
| Basic Shares | 22,588 | 22,588 | 22,588 | 22,412 | |||||||||||||||||||
| Diluted Shares | 22,588 | 22,588 | 22,588 | 22,558 | |||||||||||||||||||
1 Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023.
2 The income tax expense is calculated using the estimated U.S. federal and state statutory tax rate of 23.7%.
Note - Our "as adjusted" data is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates year-over-year comparisons for investors and financial analysts.
GAAP - generally accepted accounting principles in the U.S.