LEHI, Utah, June 29, 2021 /PRNewswire/ -- Purple Innovation,
Inc. (NASDAQ: PRPL) ("Purple" or the "Company"), a leader in
comfort innovation and the creator of the renowned Purple®
Mattress, today is hosting a Virtual Investor and Analyst Session
beginning at 1:00 pm ET and ending
at approximately 3:30 pm ET. A
live webinar of management's presentation is available at
https://investors.purple.com/. A replay of the webinar and a copy
of the presentation materials will be available following the
presentation at https://investors.purple.com/.
Longer-Term Targets
In today's presentation, the management team will outline
details of its plans for achieving $2.0 to $2.5
billion in revenue and adjusted EBITDA margins in the
mid-teens within the next 3-5 years. At the beginning of the
presentation, management will also provide a brief overview of the
additional updates referenced below.
Updated Near-Term Outlook
Purple is also updating its second quarter 2021 outlook provided
in its earnings release issued on May 17,
2021, to reflect isolated challenges that negatively
impacted net revenue, gross margin, and adjusted EBITDA. The
Company now expects second quarter 2021 net revenue to be between
$175 to $185
million and gross margin to be between 43% and 45% and is
withdrawing adjusted EBITDA guidance (provided May 17, 2021) for the quarter ended June 30, 2021. Detail is provided below.
Isolated Production Challenges
During the second quarter, following an accident and resulting
safety improvements involving the Mattress Max™ machines, the
Company experienced production challenges caused by unanticipated
mechanical and maintenance issues encountered bringing the machines
back online. In total, the Company projects significantly reduced
production levels for approximately 10 weeks causing shipment
backlogs that will impact both second and third quarter revenue.
The Company expects to have production fully back online by
mid-July. See Appendix.
The Company expects no impact on completing the scheduled
addition of additional Mattress Max machines as previously
announced. The Company is confident that these issues are an
isolated event and will have no impact on its ability to scale
beyond 2021.
Withdrawing Full-Year Guidance
Based on the updated results for the second quarter and the
impact the production challenges will have on the third quarter,
the Company is withdrawing its full-year financial guidance
(provided May 17, 2021) for the year
ending December 31, 2021. The Company
is completing a thorough review of the impact of the recent
production challenges, as well as other macro-economic trends
including supply-chain, labor, and marketing costs and anticipates
providing revised full year guidance when it reports second quarter
2021 results.
Despite the recent challenges, management looks forward to
sharing the Company's 3-to-5-year plan for growth with the analyst
and investor community.
About Purple
Purple is a digitally-native vertical brand with a mission to
help people feel and live better through innovative comfort
solutions. We design and manufacture a variety of innovative,
premium, branded comfort products, including mattresses, pillows,
seat and back cushions, frames, sheets and more. Our products are
the result of over 25 years of innovation and investment in
proprietary and patented comfort technologies and the development
of our own manufacturing processes. Our proprietary gel technology,
Hyper-Elastic Polymer®, underpins many of our comfort products and
provides a range of benefits that differentiate our offerings from
other competitors' products. We market and sell our products
through our direct-to-consumer online channels, traditional retail
partners, third-party online retailers and our owned retail
showrooms.
Forward Looking Statements
Certain statements made in this release that are not historical
facts are "forward looking statements" within the meaning of the
"safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
include but are not limited to statements relating to our ability
and plans to achieve $2.0 to
$2.5 billion in revenue and
adjusted EBITDA margins in the mid-teens by 2025; the expected
scope and timing of the impact of mechanical and maintenance issues
on our production levels; the expected timing of and our
ability to return to full production capacity; the anticipated
timing of bringing our current and additional Mattress Max machines
on-line; our ability to scale beyond 2021, the impact of
macro-economic trends on our financial and operating results; our
expected financial and operating results for the quarter ending
June 30, 2021, and the fiscal year
ending December 31, 2021; and our
expectations regarding the timing and extent of limitations on
production levels and our expectations of when production levels
will return to normal. The attached Appendix constitutes
forward-looking information and should not be relied on as a
projection or trend or a representation of actual historical data
but is provided for illustrative purposes only and should not be
relied on and is subject to risks and uncertainties regarding
production capacities coming online in a timely fashion and other
risks and uncertainties. Statements based on historical data are
not intended and should not be understood to indicate the Company's
expectations regarding future events. Forward-looking statements
provide current expectations or forecasts of future events or
determinations. These forward-looking statements are not guarantees
of future performance, conditions or results, and involve a number
of known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside the Company's control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Factors
that could influence the realization of forward-looking statements
include, among others: uncertainties regarding the extent and
duration of the impact of the COVID-19 pandemic on many aspects of
our business, operations and financial performance; disruptions to
our manufacturing processes and capacity; delays in bringing
production capacity to expected levels; delays in bringing new and
existing Mattress Max machines online and rebuilding capacity;
changes in economic, financial and end-market conditions in the
markets in which we operate; changes in consumer preferences and
demand; fluctuations in raw material prices and labor costs and
related impact on margins; the financial condition of our customers
and suppliers; competitive pressures, including the need for
technology improvement, successful new product development and
introduction; changes in our relationships with wholesale partners;
and the risk factors outlined in the "Risk Factors" section of our
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the "SEC") on March 11,
2021, as amended by our Annual Report on Form 10-K/A filed
with the SEC on May 10, 2021 and in
our Quarterly Report on Form 10-Q filed with the SEC on
May 17, 2021. The Company does not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Non-GAAP Financial Measures
Adjusted EBITDA margin is a non-GAAP financial measures that
remove the impact of certain non-cash and non-recurring costs.
Management believes that the use of such non-GAAP financial
measures provides investors with additional useful information with
respect to the impact of various adjustments, which we view as a
better measure of our operating performance. With respect to the
Company's projected adjusted EBITDA margins within the next 3 to 5
years, a quantitative reconciliation to the corresponding GAAP
information cannot be provided without unreasonable effort because
of the inherent difficulty of accurately forecasting the occurrence
and financial impact of the various adjusting items necessary for
such reconciliation that have not yet occurred, are out of our
control, or cannot be reasonably predicted, including but not
limited to warrant liabilities and stock based compensation. For
the same reasons, the Company is unable to assess the probable
significance of the unavailable information, which could have a
material impact on its future GAAP financial results.
Investor Contact:
Brendon
Frey, ICR
brendon.frey@icrinc.com
203–682–8200
Purple Innovation, Inc.
Misty Bond
Director of Purple Communications
misty.b@purple.com
385-498-1851
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SOURCE Purple Innovation, Inc.