e.l.f. Beauty Reconfirms Fiscal 2017 Outlook
January 08 2018 - 4:15PM
Business Wire
e.l.f. Beauty (NYSE: ELF) today reconfirmed its fiscal year 2017
outlook and adjusted its fiscal 2016 – 2019 growth algorithm ahead
of its presentation at the 20th Annual ICR Conference.
Fiscal 2017 Outlook
For the fiscal year 2017, the Company reconfirmed the following
outlook:
Fiscal
Fiscal 2017 Outlook (Approx.) 2016 Actual
% Change Net Sales $ 270
million $ 230 million 17 Adjusted EBITDA $ 62 million $ 54 million
15 Adjusted Net Income $ 28 million $ 18 million 56 Adjusted Pro
Forma Diluted EPS $ 0.55 $ 0.36 53 Fully Diluted Shares Outstanding
50.0 million 50.2 million N/A
The Company noted that it has not completed its year-end close
or the annual independent audit and as such, the outlook presented
in this press release may change. In addition, while the Company is
reconfirming its fiscal year 2017 outlook and may choose to provide
interim updates in the future, investors should not expect the
Company to provide interim quarterly updates of outlook information
in advance of scheduled quarterly earnings announcement dates.
2016-2019 Growth Algorithm
Reflecting current category trends, the Company noted that it is
updating the compound annual growth rates included in its growth
algorithm. The Company now expects a compound annual net sales and
Adjusted EBITDA growth rate of 10-15% from fiscal 2016 to 2019.
ICR Conference
As previously announced, the Company will present at the 20th
Annual ICR Conference in Orlando, Florida. The Company’s
presentation will be held, tomorrow, Tuesday, January 9, 2018 at
10:30 a.m. Eastern Time. A live audio webcast of the presentation
can be accessed at: http://investor.elfcosmetics.com/ and a replay
will remain available for 90 days.
About e.l.f. Beauty
e.l.f. makes luxurious beauty accessible for all. Established in
2004 as an e-commerce business (www.elfcosmetics.com), e.l.f. has
become a true multi-channel brand through its e.l.f. stores and
national distribution at Target, Walmart, CVS and other leading
retailers. By engaging young, diverse makeup enthusiasts with
innovative, high-quality cosmetics at an extraordinary value,
e.l.f. has become one of the fastest growing cosmetics companies in
the United States.
For more information about e.l.f. Beauty, visit the Company’s
website at http://www.elfcosmetics.com.
Note Regarding Non-GAAP Financial Measures
This press release includes references to Adjusted EBITDA,
Adjusted Net Income and Adjusted Pro Forma Diluted EPS. The Company
presents these measures because its management uses these as
supplemental measures in assessing its operating performance, and
believes they are helpful to investors, securities analysts and
other interested parties in evaluating the Company’s performance.
The measures referenced above are not measurements of financial
performance under GAAP and they should not be considered as
alternatives to measures of performance derived in accordance with
GAAP. In addition, these alternative measures should not be
construed as an inference that the Company’s future results will be
unaffected by unusual or non-recurring items. These alternative
measures have limitations as analytical tools, and you should not
consider such measures either in isolation or as substitutes for
analyzing the Company’s results as reported under GAAP. The
Company’s definitions and calculations of these alternative
measures are not necessarily comparable to other similarly titled
measures used by other companies due to different methods of
calculation. Adjusted EBITDA (earnings before interest expense,
income tax, depreciation and amortization) excludes costs related
to “restructuring” of operations, initial public offering costs,
stock-based compensation, management fees paid to our sponsor,
retail store pre-opening costs, customer expansion costs, other
non-cash and non-recurring costs and (gains)/losses on foreign
currency contracts. Adjusted Net Income excludes costs related to
“restructuring” of operations, initial public offering costs,
stock-based compensation, management fees paid to our sponsor,
retail store pre-opening costs, customer expansion costs, other
non-cash and non-recurring costs, (gains)/losses on foreign
currency contracts, interest expense and the tax impact of the
foregoing adjustments. Adjusted Pro Forma Diluted EPS equals
Adjusted Net Income divided by fully-diluted pro forma share count,
which reflects the number of shares issued with the initial public
offering in September 2016 as if they had been outstanding as of
January 1, 2016. With respect to the Company’s expectations under
“Fiscal 2017 Outlook” above, the Company is not able to provide a
quantitative reconciliation of the Adjusted EBITDA, Adjusted Net
Income and Adjusted Pro Forma Diluted EPS guidance non-GAAP
measures to the corresponding Net Income and Diluted EPS GAAP
measures without unreasonable efforts. The Company cannot provide
meaningful estimates of the non-recurring charges and credits
excluded from these non-GAAP measures at this time because it has
not yet completed its year-end close. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information.
Forward-Looking Statements
This press release contains 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. Forward-looking statements discuss the Company’s
current expectations, estimates and projections relating to its
financial condition and results of operations. These statements,
including those under the headings “Fiscal 2017 Outlook” and
“2016-2019 Growth Algorithm,” are based on the Company’s current
plans and expectations and involve risks and uncertainties which
are, in many instances, beyond the Company’s control, and which
could cause actual results to differ materially from those included
in or contemplated or implied by the forward-looking
statements. Such risks and uncertainties include, but are not
limited to: the completion of the Company’s year-end closing
procedures and independent audit; the Company’s ability to grow net
sales and Adjusted EBITDA as anticipated; the Company’s ability to
effectively compete with other cosmetics companies; the Company’s
ability to successfully introduce new products; the loss of one or
more of the Company’s key retail customers or if the general
business performance of its key retail customers declines; the
consequences if the Company fails to maintain the quality,
performance and safety of its products; the Company’s ability to
successfully implement its growth strategy; the Company’s ability
to grow its business at historic rates, or at all, and to manage
growth effectively; any damage to the Company’s reputation or
brand; the loss of, or damage to, the Company’s warehouse and
distribution center and/or the manufacturing facilities or
distribution centers of its third-party manufacturers and
suppliers; the loss of the third-party suppliers, manufacturers,
distributors and other vendors that the Company relies on to
produce products or provide services that are consistent with its
standards or applicable regulatory requirements; the Company’s
ability to effectively manage its inventory; the Company’s ability
to manage its debt obligations; the Company’s ability to maintain
sufficient liquidity to sustain its business and meet seasonal
working capital requirements; the Company’s ability to protect
against service interruptions, data corruption, cyber-based attacks
or network security breaches, and to effectively resolve issues in
a timely manner if they occur; the Company’s ability to protect
sensitive information of its consumers and information technology
systems against security breaches; the Company’s ability to manage
the political, legal and economic risks associated with its
operations in China; and other risks and uncertainties that may be
described from time to time in the Company’s reports and filings
with the Securities and Exchange Commission, including the risks
and uncertainties set forth in the Company’s Quarterly Report on
Form 10-Q for the period ended September 30, 2017. Any
forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995, as amended, and speak
only as of the date hereof. The Company undertakes no obligation to
update forward-looking statements to reflect developments or
information obtained after the date hereof and disclaims any
obligation to do so other than as may be required by law.
ELF-EC
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Investors and Media:ICR, Inc.Investors:Allison Malkin,
203-682-8200orMedia:Brittany Rae Fraser, 646-277-1231
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