Fourth Quarter Net Sales Increased
19%
Fourth Quarter Gross Margin Expanded 690
Basis Points
Fourth Quarter Net Income Grew 533%;
Adjusted Net Income Increased 379%
Debt Repayments Totaled $152 Million During
Fiscal 2018
YETI Holdings, Inc. (“YETI” or the “Company”) (NYSE: YETI) today
announced its financial results for the fourth quarter and fiscal
year ended December 29, 2018.
Fourth Quarter Fiscal 2018 Highlights as Compared to Fourth
Quarter Fiscal 2017
- Net sales increased 19% to $241.2
million
- Gross margin improved 690 basis points
to 53.0%
- Net income increased 533% to $25.2
million, or $0.30 per diluted share
- Adjusted Net Income grew 379% to $32.0
million, or $0.38 per diluted share
- Adjusted EBITDA increased 58% to $52.2
million
YETI reports its financial performance in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”) and as adjusted on a non-GAAP basis. Please see
“Non-GAAP Financial Information” and “Reconciliation of GAAP to
Non-GAAP Financial Information” below for additional information
and reconciliations of the non-GAAP financial measures to the most
comparable GAAP financial measures.
Matt Reintjes, President and Chief Executive Officer of YETI
Holdings, Inc., commented, “We finished 2018 with significant
momentum in our business as we delivered full year results well
above our original outlook and solidly at the high end of the
revised outlook. We are extremely pleased with the strength in our
business as our brand and products continue to resonate with
consumers across all markets. We look forward to building on that
momentum throughout 2019 as we continue to expand our customer
base, drive product innovation, grow our direct-to-consumer
business, and expand internationally.”
For the Three Months (Thirteen Weeks) Ended December 29,
2018
Net sales increased 19% to $241.2 million compared with
$202.1 million during the same period last year.
Direct-to-consumer (“DTC”) channel net sales increased 45% to
$110.5 million compared to $76.0 million in the prior year quarter
with strong performance in both product categories, particularly
Drinkware.
Wholesale channel net sales increased 4% to $130.7 million
compared to $126.1 million in the prior year quarter primarily
driven by Coolers & Equipment.
Drinkware net sales increased 24% to $143.5 million
compared to $115.9 million during the same period last year,
primarily driven by the expansion of our Drinkware product
offerings, new Drinkware accessories, and the introduction of new
Drinkware colorways during Fiscal 2018.
Coolers & Equipment net sales increased 10% to
$91.2 million compared to $83.0 million during the same
period last year, primarily driven by the expansion of our hard
cooler and soft cooler products, as well as the introduction of
several new bags and outdoor living products during Fiscal
2018.
Gross profit increased 37% to $127.8 million, or 53.0% of
net sales, compared to $93.1 million, or 46.1% of net sales, in the
prior year quarter. The 690 basis point increase was primarily
driven by cost improvements across our product portfolio, the
non-recurrence of inventory reserves taken last year, and an
increased mix of DTC channel net sales. These were partially offset
by price reductions taken earlier in 2018 on select hard and soft
coolers in anticipation of new product introductions as well as
higher tariffs.
Selling, General, and Administrative (“SG&A”)
expenses increased to $90.2 million, or 37.4% of net sales,
compared to $69.3 million, or 34.3% of net sales, in the prior year
quarter. As a percentage of net sales, SG&A expenses increased
310 basis points. Approximately 180 basis points of the increase
was attributable to higher costs associated with our transition to
becoming a public company and a non-cash asset impairment charge.
The remaining balance of the increase was primarily due to
increased performance marketing and employee expenses to support
the growth of our business partially offset by other SG&A cost
savings.
Operating income increased 58% to $37.6 million, or 380
basis points to 15.6% of net sales, compared to $23.9 million, or
11.8% of net sales, during the same period last year.
Adjusted Operating Income increased 63% to $45.9 million,
or 510 basis points to 19.0% of net sales, compared to $28.1
million, or 13.9% of net sales, during the same period last
year.
Net income increased 533% to $25.2 million, or $0.30 per
diluted share, compared to net income of $4.0 million, or $0.05 per
diluted share, in the prior year quarter.
Adjusted Net Income increased 379% to $32.0 million, or
$0.38 per diluted share, compared to Adjusted Net Income of $6.7
million, or $0.08 per diluted share, in the prior year quarter.
Adjusted EBITDA increased 58% to $52.2 million from $33.1
million during the same period last year.
For the Twelve Months (Fifty-Two Weeks) Ended December 29,
2018
Net sales increased 22% to $778.8 million compared with
$639.2 million during the same period last year.
DTC channel net sales increased 48% to $287.4 million compared
to $194.4 million during the same period last year. Wholesale
channel net sales increased 10%, to $491.4 million compared to
$444.9 million in the prior fiscal year.
Drinkware net sales increased by 37% to $424.2 million
compared to $310.3 million during the same period last year.
Coolers & Equipment net sales increased by 6%, to
$331.2 million compared to $312.2 million during the same
period last year.
Operating income increased 60% to $102.2 million, or
13.1% of net sales, compared to $64.0 million, or 10.0% of net
sales, in the prior fiscal year. The 310 basis point improvement
was driven by gross margin expansion.
Adjusted Operating Income increased 63% to $124.2
million, or 15.9% of net sales, compared to $76.0 million, or 11.9%
of net sales, in the prior fiscal year. The 400 basis point
improvement was driven by gross margin expansion coupled with
expense leverage.
Net income increased 275% to $57.8 million, or $0.69 per
diluted share, compared to net income of $15.4 million, or $0.19
per diluted share, during the same period last year. This reflects
an unusually low effective tax rate of 17% for Fiscal 2018, which
was primarily driven by a significant tax benefit from the exercise
of stock options in connection with our initial public offering
(“IPO”) and the reduction of the U.S federal income tax rate in
2018 as a result of the U.S. Tax Cuts and Jobs Act.
Adjusted Net Income increased 227% to $75.7 million, or
$0.91 per diluted share, compared to Adjusted Net Income of $23.1
million, or $0.28 per diluted share, during the same period last
year. As mentioned above, this reflects an unusually low effective
tax rate of 17% for Fiscal 2018, which was primarily driven by the
significant tax benefit from the exercise of stock options in
connection with our IPO, and the reduction of the U.S. federal
income tax rate in 2018.
Adjusted EBITDA increased 53% to $149.0 million from
$97.5 million during the same period last year.
Balance Sheet and Cash Flow Highlights
Inventory was $145.4 million at the end of Fiscal 2018
compared to $175.1 million at the end of Fiscal 2017, which
represents a 17% decline. This reduction was driven by improved
demand forecasting, better inventory control across all product
categories, and sales above plan.
Total debt, excluding unamortized deferred financing
fees, was $332.9 million at the end of Fiscal 2018 and our ratio of
total net debt, which is total debt less cash of $80.1 million, to
Adjusted EBITDA for the trailing twelve months was 1.7 times at the
end of Fiscal 2018 compared to 4.4 times at the end of the prior
fiscal year. During the fourth quarter of Fiscal 2018, we
voluntarily paid down in full the $47.6 million outstanding balance
of Term Loan B and made voluntary and mandatory payments of $2.4
million and $11.1 million, respectively, to Term Loan A using the
net proceeds from our IPO plus additional cash on hand.
Cash flow provided by operating activities was $57.2
million and capital expenditures were $7.5 million for fourth
quarter Fiscal 2018. For Fiscal 2018, cash flow provided by
operating activities was $176.1 million and capital expenditures
were $20.9 million.
For Fiscal 2019 the Company’s Outlook is as follows:
- Net sales to increase between
11.5% and 13% compared to Fiscal 2018 with growth across both
channels led by the DTC channel;
- Operating income as a percentage of
net sales between 13.9% and 14.4%, reflecting margin expansion
of 80 to 130 basis points, primarily driven by higher gross
margin;
- Adjusted Operating Income as a
percentage of net sales between 15.9% and 16.3%, reflecting
margin expansion of flat to 40 basis points, primarily driven by
higher gross margin;
- An effective tax rate at a more
normalized level of approximately 24.5%;
- Net income per diluted share
between $0.84 and $0.89, reflecting 22% and 29% growth; assuming a
normalized tax rate of 24.5% in 2018, earnings growth would be
between 34% and 42% (the effective tax rate for 2018 was 17%);
- Adjusted Net Income per diluted
share between $0.99 and $1.04, reflecting 10% to 15% growth;
assuming a normalized tax rate of 24.5% in 2018, adjusted earnings
growth would be between 18% and 24% (the effective tax rate for
2018 was 17%);
- Diluted weighted average shares
outstanding of 86 million;
- Adjusted EBITDA between $169.0
million and $174.3 million, reflecting 13% to 17% growth;
- Capital expenditures between $35
million and $40 million; and
- Debt repayments of approximately
$80 million and a ratio of net debt to Adjusted EBITDA of
approximately 1.0 times at the end of Fiscal 2019 compared to 1.7
times at the end of Fiscal 2018.
Conference Call Details
A conference call to discuss the fourth quarter and full year
Fiscal 2018 financial results is scheduled for today, February 14,
2019, at 8:00 a.m. Eastern Time. Investors and analysts interested
in participating in the call are invited to dial 877-451-6152
(international callers please dial 201-389-0879) approximately 10
minutes prior to the start of the call. A live audio webcast of the
conference call will be available online at
http://investors.yeti.com and by dialing 844-512-2921 and entering
the access code 13686383. The replay will be available until March
7, 2019. A copy of this press release will be furnished to the
Securities and Exchange Commission on a Current Report on Form 8-K,
and will be posted to our investor relations web site, prior to the
conference call.
About YETI Holdings, Inc.
YETI is a designer, marketer, retailer, and distributor of a
variety of innovative, branded, premium products to a wide-ranging
customer base. Our brand promise is to ensure each YETI product
delivers exceptional performance and durability in any environment,
whether in the remote wilderness, at the beach, or anywhere else
life takes you. We bring our products to market through a diverse
and powerful omni-channel strategy, comprised of our select group
of national and independent retail partners and our DTC channel. By
consistently delivering high-performing products, we have built a
following of engaged brand loyalists throughout the United States,
Canada, Australia, and elsewhere, ranging from serious outdoor
enthusiasts to individuals who simply value products of
uncompromising quality and design. Our relationship with customers
continues to thrive and deepen as a result of our innovative new
product introductions, expansion and enhancement of existing
product families, and multifaceted branding activities.
Non-GAAP Financial Information
This press release includes financial measures that are not
defined by GAAP, including Adjusted Operating Income, Adjusted Net
Income, Adjusted Net Income per diluted share, and Adjusted EBITDA.
We define Adjusted Operating Income and Adjusted Net Income as
operating income and net income, respectively, adjusted for
non-cash stock-based compensation expense, asset impairment
charges, investments in new retail locations and international
market expansion, transition to Cortec Group Fund V, L.P. and its
affiliates (“Cortec”) majority ownership, transition to the ongoing
senior management team, and transition to a public company, and, in
the case of Adjusted Net Income, also adjusted for accelerated
amortization of deferred financing fees and the loss from early
extinguishment of debt resulting from early prepayments of debt,
and the tax impact of all adjustments. Adjusted Net Income per
share is calculated using Adjusted Net Income, as defined above,
and diluted weighted average shares outstanding. We define Adjusted
EBITDA as net income before interest expense, net, provision
(benefit) for income taxes and depreciation and amortization,
adjusted for the impact of certain other items, including: non-cash
stock-based compensation expense; asset impairment charges;
accelerated amortization of deferred financing fees and loss from
early extinguishment of debt resulting from the early prepayment of
debt; investments in new retail locations and international market
expansion; transition to Cortec majority ownership; transition to
the ongoing senior management team; and transition to a public
company. The expenses incurred related to these transitional events
include: management fees and contingent consideration related to
the transition to Cortec majority ownership; severance, recruiting,
and relocation costs related to the transition to our ongoing
senior management team; consulting fees, recruiting fees, salaries
and travel costs related to members of our Board of Directors, fees
associated with Sarbanes-Oxley Act compliance, and incremental
audit and legal fees in connection with our transition to a public
company. All of these transitional costs are reported in selling,
general, and administrative (“SG&A”) expenses.
Adjusted Operating Income, Adjusted Net Income, Adjusted Net
Income per diluted share, and Adjusted EBITDA are not defined by
GAAP and may not be comparable to similarly titled measures
reported by other entities. We use these non-GAAP measures, along
with GAAP measures, as a measure of profitability. These measures
help us compare our performance to other companies by removing the
impact of our capital structure; the effect of operating in
different tax jurisdictions; the impact of our asset base, which
can vary depending on the book value of assets and methods used to
compute depreciation and amortization; the effect of non-cash
stock-based compensation expense, which can vary based on plan
design, share price, share price volatility, and the expected lives
of equity instruments granted; as well as certain expenses related
to what we believe are events of a transitional nature. We also
disclose Adjusted Operating Income, Adjusted Net Income, and
Adjusted EBITDA as a percentage of net sales to provide a measure
of relative profitability.
We believe that these non-GAAP measures, when reviewed in
conjunction with GAAP financial measures, and not in isolation or
as substitutes for analysis of our results of operations under
GAAP, are useful to investors as they are widely used measures of
performance and the adjustments we make to these non-GAAP measures
provide investors further insight into our profitability and
additional perspectives in comparing our performance to other
companies and in comparing our performance over time on a
consistent basis. Adjusted Operating Income, Adjusted Net Income,
and Adjusted EBITDA have limitations as profitability measures in
that they do not include the interest expense on our debts, our
provisions for income taxes, and the effect of our expenditures for
capital assets and certain intangible assets. In addition, all of
these non-GAAP measures have limitations as profitability measures
in that they do not include the effect of non-cash stock-based
compensation expense, the effect of asset impairments, the effect
of investments in new retail locations and international market
expansion, and the impact of certain expenses related to
transitional events that are settled in cash. Because of these
limitations, we rely primarily on our GAAP results.
In the future, we may incur expenses similar to those for which
adjustments are made in calculating Adjusted Operating Income,
Adjusted Net Income, and Adjusted EBITDA. Our presentation of these
non-GAAP measures should not be construed as a basis to infer that
our future results will be unaffected by extraordinary, unusual or
non-recurring items.
Forward-looking statements
This press release contains ‘‘forward-looking statements’’
within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical or
current fact included in this press release are forward-looking
statements. Forward-looking statements include statements
containing words such as ‘‘anticipate,’’ ‘‘assume,’’ ‘‘believe,’’
‘‘can have,’’ ‘‘contemplate,’’ ‘‘continue,’’ ‘‘could,’’ ‘‘design,’’
‘‘due,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘forecast,’’ ‘‘goal,’’
‘‘intend,’’ ‘‘likely,’’ ‘‘may,’’ ‘‘might,’’ ‘‘objective,’’
‘‘plan,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘potential,’’ ‘‘seek,’’
‘‘should,’’ ‘‘target,’’ ‘‘will,’’ ‘‘would,’’ and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operational performance or other events.
For example, all statements made relating to our growth plans and
expectations and our expectations for annual growth, including
those set forth in the quote from the Company’s President and CEO,
and the Fiscal 2019 financial outlook provided herein. All
forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially from those that
are expected and, therefore, you should not unduly rely on such
statements. The risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements include but are not limited to:
our ability to maintain and strengthen our brand and generate and
maintain ongoing demand for our products; our ability to
successfully design and develop new products; our ability to
effectively manage our growth; our ability to expand into
additional consumer markets, and our success in doing so; the
success of our international expansion plans; our ability to
compete effectively in the outdoor and recreation market and
protect our brand; problems with, or loss of, our third-party
contract manufacturers and suppliers, or an inability to obtain raw
materials; fluctuations in the cost and availability of raw
materials, equipment, labor, and transportation and subsequent
manufacturing delays or increased costs; our ability to accurately
forecast demand for our products and our results of operations; our
relationships with our independent retail partners, who account for
a significant portion of our sales; the impact of natural disasters
and failures of our information technology on our operations and
the operations of our manufacturing partners; our ability to
attract and retain skilled personnel and senior management, and to
maintain the continued efforts of our management and key employees;
the impact of our indebtedness on our ability to invest in the
ongoing needs of our business; and other risks and uncertainties
listed in YETI’s filings with the United States Securities and
Exchange Commission (the “SEC”), including under Item 1A. Risk
Factors and elsewhere in YETI’s quarterly report on Form 10-Q for
the quarter ended September 29, 2018 filed with the SEC on December
6, 2018, as such risk factors may be amended, supplemented or
superseded from time to time by other reports the Company files
with the SEC. These forward-looking statements are made based upon
detailed assumptions and reflect management’s current expectations
and beliefs. While YETI believes that these assumptions underlying
the forward-looking statements are reasonable, YETI cautions that
it is very difficult to predict the impact of known factors, and it
is impossible for YETI to anticipate all factors that could affect
actual results.
The forward-looking statements included here are made only as of
the date hereof. YETI undertakes no obligation to publicly update
or revise any forward-looking statement as a result of new
information, future events, or otherwise, except as required by
law.
YETI Holdings, Inc. Condensed Consolidated
Statements of Operations (Unaudited) (In thousands,
except per share amounts) Three
Months Ended Fiscal Year Ended December 29,
December 30, December 29, December 30,
2018 2017 2018 2017 Net sales $ 241,179
$ 202,099 $ 778,833 $ 639,239 Cost of goods sold 113,351
108,976 395,705 344,638
Gross profit 127,828 93,123 383,128 294,601 Selling,
general, and administrative expenses 90,226
69,253 280,972 230,634 Operating
income 37,602 23,870 102,156 63,967 Interest expense (6,806 )
(8,646 ) (31,280 ) (32,607 ) Other (expense) income (936 )
(562 ) (1,261 ) 699 Income before
income taxes 29,860 14,662 69,615 32,059 Income tax expense
(4,691 ) (10,688 ) (11,852 ) (16,658 )
Net
income $ 25,169 $ 3,974
$ 57,763 $ 15,401
Net income per share Basic $ 0.30 $ 0.05 $ 0.71 $
0.19 Diluted $ 0.30 $ 0.05 $ 0.69 $ 0.19
Weighted average
common shares outstanding Basic 83,392 81,535 81,777 81,479
Diluted 85,237 82,841 83,519 82,972
YETI Holdings,
Inc. Condensed Consolidated Balance Sheets
(Unaudited) (In thousands, except per share amounts)
December 29, December 30, 2018
2017 ASSETS Current assets Cash $ 80,051 $ 53,650
Accounts receivable, net 59,328 67,152 Inventory 145,423 175,098
Prepaid expenses and other current assets 12,211
7,134
Total current assets 297,013 303,034
Property and equipment, net 74,097 73,783 Goodwill 54,293 54,293
Intangible assets, net 80,019 74,302 Deferred income taxes 7,777
10,004 Deferred charges and other assets 1,014 1,011
Total assets $ 514,213 $
516,427 LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT) Current liabilities Accounts payable $ 68,737 $
40,342 Accrued expenses and other current liabilities 53,022 45,862
Taxes payable 6,390 12,280 Accrued payroll and related costs 15,551
6,364 Current maturities of long-term debt 43,638
47,050
Total current liabilities 187,338
151,898 Long-term debt, net of current portion 284,376 428,632
Other liabilities 13,528 12,128
Total liabilities 485,242 592,658 Commitments and
contingencies Equity
Common stock, par value $0.01; 400,000
shares authorized; 84,196 and 81,535 sharesoutstanding at December
29, 2018 and December 30, 2017, respectively
842 815 Preferred stock, par value $0.01; 30,000 shares authorized;
no shares issued or outstanding — — Additional paid-in capital
268,327 219,095 Accumulated deficit (240,104 ) (296,184 )
Accumulated other comprehensive (loss) income (94 )
43
Total stockholders’ equity (deficit) 28,971
(76,231 )
Total liabilities and stockholders’
equity $ 514,213 $ 516,427
YETI Holdings, Inc. Condensed
Consolidated Statements of Cash Flows (Unaudited) (In
thousands, except per share amounts) Fiscal
Year Ended December 29, December 30, 2018
2017 Cash Flows from Operating Activities: Net income
$ 57,763 $ 15,401 Adjustments to reconcile net income to cash
provided by operating activities: Depreciation and amortization
24,777 20,769 Amortization of deferred financing fees 3,425 2,950
Stock-based compensation 13,247 13,393 Deferred income taxes 2,226
8,500 Impairment of long-lived assets 2,209 — Loss on early
extinguishment of debt 694 — Changes in operating assets and
liabilities: Accounts receivable, net 7,675 (29,909 ) Inventory
29,583 71,040 Other current assets (5,089 ) 17,915 Accounts payable
and accrued expenses 43,740 27,992 Taxes payable (5,876 ) (12,805 )
Other 1,694 12,505 Net cash provided by
operating activities 176,068 147,751
Cash Flows from Investing Activities: Purchases of property
and equipment (20,860 ) (42,197 ) Purchases of intangibles, net
(11,027 ) 4,926 Changes in notes receivables — 1,416 Cash paid to
Rambler On for acquisition — (2,867 ) Proceeds from sale of
long-lived assets 165 — Net cash used
in investing activities (31,722 ) (38,722 )
Cash
Flows from Financing Activities: Changes in revolving line of
credit — (20,000 ) Repayments of long-term debt (151,788 ) (45,550
) Payments of deferred financing fees — (1,957 ) Cash paid for
repurchase of common stock (1,967 ) — Proceeds from employee stock
transactions 262 99 Taxes paid in connection with exercise of stock
options (57 ) (2,018 ) Dividends (2,523 ) (2,811 ) Proceeds from
issuance of common stock, net of offering costs 38,083
— Net cash used in financing activities
(117,990 ) (72,237 )
Noncash Investing Activities:
Changes related to acquisition of Rambler On —
(4,432 ) Total noncash investing activities — (4,432 )
Effect of
exchange rate changes on cash 45 (1 )
Net increase in
cash 26,401 32,359
Cash, beginning of period
53,650 21,291
Cash, end of period
$ 80,051 $ 53,650
YETI Holdings, Inc. Selected Financial Data
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited) (In thousands except per share amounts)
Three Months Ended Fiscal
Year Ended December 29, December 30, December
29, December 30, 2018 2017 2018
2017 Operating income $ 37,602 $
23,870 $ 102,156 $ 63,967
Adjustments: Non-cash stock-based compensation expense(1) 3,216
4,207 13,247 13,393 Long-lived asset impairment(1) 1,236 — 1,236 —
Investments in new retail locations and
international marketexpansion(1)(2)
503 — 795 — Transition to Cortec majority ownership(1)(3) — — 750
750 Transition to the ongoing senior management team(1)(4) 128 —
1,822 90 Transition to a public company(1)(5) 3,194
31 4,197 (2,197 )
Adjusted
Operating Income $ 45,879 $
28,108 $ 124,203 $
76,003 Net income $
25,169 $ 3,974 $ 57,763 $
15,401 Adjustments: Non-cash stock-based compensation
expense(1) 3,216 4,207 13,247 13,393 Long-lived asset impairment(1)
1,236 — 1,236 —
Loss from early extinguishment of debt and
acceleratedamortization of deferred financing fees(6)
716 — 1,330 —
Investments in new retail locations and
international marketexpansion(1)(2)
503 — 795 — Transition to Cortec majority ownership(1)(3) — — 750
750 Transition to the ongoing senior management team(1)(4) 128 —
1,822 90 Transition to a public company(1)(5) 3,194 31 4,197 (2,197
) Tax impact of adjusting items(7) (2,113 ) (1,517 )
(5,450 ) (4,311 )
Adjusted Net Income $
32,049 $ 6,695 $
75,690 $ 23,126 Net
income $ 25,169 $ 3,974 $
57,763 $ 15,401 Adjustments: Interest expense
6,806 8,646 31,280 32,607 Income tax expense 4,691 10,688 11,852
16,658 Depreciation and amortization expense(8) 6,559 5,598 24,777
20,769 Non-cash stock-based compensation expense(1) 3,216 4,207
13,247 13,393 Long-lived asset impairment(1) 1,236 — 1,236 —
Loss from early extinguishment of debt and
acceleratedamortization of deferred financing fees(6)
716 — 1,330 —
Investments in new retail locations and
international marketexpansion(1)(2)
503 — 795 — Transition to Cortec majority ownership(1)(3) — — 750
750 Transition to the ongoing senior management team(1)(4) 128 —
1,822 90 Transition to a public company(1)(5) 3,194
31 4,197 (2,197 )
Adjusted
EBITDA $ 52,218 $ 33,144
$ 149,049 $ 97,471
Net sales $ 241,179 $ 202,099 $ 778,833 $ 639,239 Net
income as a % of net sales 10.4
%
2.0
%
7.4
%
2.4
%
Adjusted Operating Income as a % of net sales 19.0
%
13.9
%
15.9
%
11.9
%
Adjusted Net Income as a % of net sales 13.3
%
3.3
%
9.7
%
3.6
%
Adjusted EBITDA as a % of net sales 21.7
%
16.4
%
19.1
%
15.2
%
Net income per diluted share 0.30 0.05 0.69 0.19 Adjusted
Net Income per diluted share 0.38 0.08 0.91 0.28 Weighted average
common shares outstanding - diluted 85,237 82,841 83,519 82,972
_________________________
(1) These costs are reported in SG&A expenses. (2)
Represents retail store pre-opening expenses and costs for
expansion into new international markets. (3) Represents management
service fees paid to Cortec, our majority stockholder. The
management services agreement with Cortec was terminated
immediately following the completion of our IPO. (4) Represents
severance, recruiting, and relocation costs related to the
transition to our ongoing senior management team. (5) Represents
fees and expenses in connection with our transition to a public
company, including consulting fees, recruiting fees, salaries, and
travel costs related to members of our Board of Directors, fees
associated with Sarbanes-Oxley Act compliance, and incremental
audit and legal fees associated with being a public company. The
2017 activity primarily consists of the reversal of a previously
recognized consulting fee that was contingent upon the completion
of our IPO attempt during 2016. (6) Represents the loss on
extinguishment of debt and accelerated amortization of deferred
financing fees resulting from the voluntary paydown and prepayments
of the term loans under our Credit Facility. During the fourth
quarter of Fiscal 2018, we voluntarily paid down in full the $47.6
million outstanding balance of Term Loan B and made a voluntary
prepayment of $2.4 million to Term Loan A. During the third quarter
of Fiscal 2018, we made a voluntary prepayment of $30.1 million to
Term Loan B. As a result of the voluntary paydown of Term Loan B
prior to maturity of May 19, 2022, we recorded a loss from
extinguishment of debt of $0.7 million relating to the write-off of
unamortized financing fees associated with Term Loan B. (7)
Represents the tax impact of adjustments calculated at an expected
statutory tax rate of 23.3% for Fiscal 2018. (8) Depreciation and
amortization expenses are reported in SG&A expenses and cost of
goods sold.
YETI Holdings, Inc. Selected
Financial Data Reconciliation of GAAP to Non-GAAP Financial
Information (Unaudited) (In thousands except per
share amounts) Fiscal 2019 Outlook
Low High Operating income $
121,102 $ 126,402 Adjustments: Non-cash
stock-based compensation expense(1) 11,860 11,860 Investments in
new retail locations and international market expansion(1)(2) 1,084
1,084 Transition to a public company(1)(3) 4,074
4,074
Adjusted Operating Income $
138,120 $ 143,420 Net
income $ 72,474 $ 76,476
Adjustments: Non-cash stock-based compensation expense(1) 11,860
11,860 Investments in new retail locations and international market
expansion(1)(2) 1,084 1,084 Transition to a public company(1)(3)
4,074 4,074 Tax impact of adjusting items(4) (4,167 )
(4,167 )
Adjusted Net Income $ 85,325
$ 89,327 Net income $
72,474 $ 76,476 Adjustments: Interest expense
25,124 25,124 Income tax expense 23,504 24,802 Depreciation and
amortization expense(5) 30,900 30,900 Non-cash stock-based
compensation expense(1) 11,860 11,860 Investments in new retail
locations and international market expansion(1)(2) 1,084 1,084
Transition to a public company(1)(3) 4,074
4,074
Adjusted EBITDA $ 169,020
$ 174,320 Net sales $ 868,399 $
880,082 Operating income as a % of net sales 13.9
%
14.4
%
Adjusted Operating Income as a % of net sales 15.9
%
16.3
%
Net income per diluted share $ 0.84 $ 0.89 Adjusted Net
Income per diluted share $ 0.99 $ 1.04 Weighted average common
shares outstanding - diluted 85,795 85,795
_________________________
(1)
These costs are reported in SG&A
expenses.
(2) Represents retail store pre-opening expenses and costs for
expansion into new international markets. (3) Represents fees and
expenses in connection with our transition to a public company,
including consulting fees, recruiting fees, salaries, and travel
costs related to members of our Board of Directors, fees associated
with Sarbanes-Oxley Act compliance, and incremental audit and legal
fees associated with being a public company. (4) Represents tax
impact of adjustments calculated at an expected statutory tax rate
of 24.5%. (5) These costs are reported in SG&A expenses and
cost of goods sold.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190214005213/en/
Investor Relations:Tom Shaw,
512-271-6332Investor.relations@yeti.com
Media:Alecia Pulman,
203-682-8224alecia.pulman@icrinc.comBrittany Fraser,
646-277-1231brittany.fraser@icrinc.com
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