Net Sales Increased 7% Gross Margin Expanded
550 Basis Points EPS increased 49% to $0.38; Adjusted EPS increased
38% to $0.41
YETI Holdings, Inc. (“YETI”) (NYSE: YETI) today announced its
financial results for the second quarter ended June 27, 2020.
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,” “Revised Non-GAAP Financial
Measures Beginning in Fiscal 2020,” 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, commented,
“I would first like to thank our YETI employees, customers,
suppliers and wholesale partners for their unwavering support in
this unprecedented and dynamic environment. I am pleased with how
our teams have adapted to and remained highly effective with
work-from-home, which we expect will remain in place for the
foreseeable future.”
Mr. Reintjes continued, “Whether setting up in the backyard or
chasing new adventures in the outdoors, YETI remains the brand of
choice for active outdoor pursuits. We delivered a strong overall
second quarter performance in the face of the significant market
disruption. The results are a testament to the resilience of demand
for our brand and the power of our diverse omni-channel strategy,
led by the strength of our direct-to-consumer business which saw
61% growth in the quarter. Throughout this challenging period, we
also delivered both gross margin and operating income margin
expansion for the quarter while fully paying down our revolver and
ending the period with a leverage ratio under 1.0 times.”
Mr. Reintjes concluded, “As we plan for the balance of the year,
we will remain focused on actively addressing the changing
environment while continuing to make strategic investments to drive
our brand and innovation. Managing the flexibility of our supply
chain and logistics will be a focus as we look to position our
inventory to match demand across our channels. Based on the level
of continued market uncertainty, we are not providing a 2020
outlook at this time.”
For the Three Months Ended June 27,
2020
Net sales increased 7% to $246.9 million, compared to
$231.7 million during the same period last year.
- Direct-to-consumer (“DTC”) channel net sales increased 61% to
$133.0 million, compared to $82.5 million in the prior year
quarter, driven by both Coolers & Equipment and Drinkware. The
increase was primarily due to a demand surge for outdoor recreation
and leisure lifestyle products as the COVID-19 pandemic has
significantly impacted consumers’ views towards how they spend
their time experiencing nature and exploring the outdoors, as well
as more consumers shopping online while sheltering-in-place.
- Wholesale channel net sales decreased 24% to $113.9 million,
compared to $149.2 million in the same period last year, driven by
both Drinkware and Coolers & Equipment. While wholesale net
sales trends turned positive at the end of the second quarter of
2020, the sharp decline in net sales during April 2020, as a result
of temporary store closures, adversely impacted the performance of
the wholesale channel.
- Drinkware net sales decreased 2% to $114.3 million, compared to
$117.0 million in the prior year quarter. Drinkware performance was
driven by significant demand in the DTC channel that was more than
offset by a decline in the wholesale channel.
- Coolers & Equipment net sales increased 18% to $128.6
million, compared to $109.1 million in the same period last year.
The strong performance was driven by growth in soft coolers, hard
coolers, and outdoor living products.
Gross profit increased 18% to $137.5 million, or 55.7% of
net sales, compared to $116.3 million, or 50.2% of net sales, in
the second quarter of Fiscal 2019. The 550 basis point increase in
gross margin was primarily driven by a favorable shift in our
channel mix led by an increase in DTC channel net sales, product
cost improvements, particularly in our Drinkware category,
decreased tariffs, and lower inbound freight, partially offset by
an unfavorable impact due to increased inventory reserves.
Selling, general, and administrative (“SG&A”)
expenses increased to $91.0 million, or 36.8% of net sales,
compared to $81.3 million, or 35.1% of net sales, in the second
quarter of Fiscal 2019. The increase of SG&A as a percentage of
net sales was primarily driven by an increase of approximately 380
basis points in variable expenses, driven by our faster growing DTC
channel which grew to 54% of net sales during the period.
Non-variable expenses leveraged 205 basis points primarily
resulting from decreased professional fees, lower non-cash
stock-based compensation expense, lower marketing expenses and
COVID-19 related savings, including lower travel expenses, and
other cost savings initiatives, partially offset by higher fixed
selling expenses.
Operating income increased 33% to $46.5 million, to 18.8%
of net sales, compared to $35.0 million, or 15.1% of net sales,
during the prior year quarter.
Adjusted operating income increased 26% to $49.3 million,
to 20.0% of net sales, compared to $39.3 million, or 17.0% of net
sales, during the same period last year.
Net income increased 51% to $33.5 million, or 13.6% of
net sales, compared to $22.2 million, or 9.6% of net sales, in the
prior year quarter; Net income per diluted share increased
49% to $0.38, compared to $0.26 per diluted share in the prior year
quarter.
Adjusted net income increased 40% to $35.6 million, or
14.4% of net sales, compared to $25.5 million, or 11.0% of net
sales, in the prior year quarter; Adjusted net income per
diluted share increased 38% to $0.41, compared to $0.30 per
diluted share in the prior year quarter.
Adjusted EBITDA increased 24% to $57.9 million, or 23.5%
of net sales, from $46.6 million, or 20.1% of net sales, during the
same period last year.
For the Six Months Ended June 27,
2020
Net sales increased 9% to $421.4 million, compared to
$387.0 million in the prior year.
- DTC channel net sales increased 47% to $212.6 million, compared
to $144.2 million in the prior year period, driven by both
Drinkware and Coolers & Equipment. The increase was primarily
due to a demand surge for outdoor recreation and leisure lifestyle
products as the COVID-19 pandemic has significantly impacted
consumers’ views towards how they spend their time experiencing
nature and exploring the outdoors, as well as more consumers
shopping online while sheltering-in-place.
- Wholesale channel net sales decreased 14% to $208.7 million,
compared to $242.8 million in the same period last year, driven by
both Drinkware and Coolers & Equipment. While wholesale net
sales trends returned to positive growth at the end of the second
quarter of 2020, the sharp decline of net sales during March and
April 2020, as a result of temporary store closures, adversely
impacted the performance of the wholesale channel.
- Drinkware net sales increased 9% to $226.9 million, compared to
$207.9 million in the prior year period, primarily driven by the
continued expansion of our Drinkware product offerings, including
the introduction of new colorways and sizes, and strong demand for
customization.
- Coolers & Equipment net sales increased 11% to $188.1
million, compared to $168.7 million in the same period last year.
The strong performance was driven by growth in soft coolers, hard
coolers, and outdoor living products.
Gross profit increased 19% to $230.0 million, or 54.6% of
net sales, compared to $192.9 million, or 49.8% of net sales, in
the prior year. The 470 basis point increase in gross margin was
primarily driven by a favorable shift in our channel mix led by an
increase in DTC channel net sales, product cost improvements,
particularly in our Drinkware category, lower inbound freight, and
decreased tariffs, partially offset by the unfavorable impact
related to increased inventory reserves.
Selling, general, and administrative (“SG&A”)
expenses increased to $167.3 million, or 39.7% of net sales,
compared to $149.1 million, or 38.5% of net sales, in the prior
year. The increase of SG&A as a percentage of net sales was
primarily driven by an increase of approximately 300 basis points
in variable expenses, driven by our faster growing DTC channel
which grew to 50% of net sales during the period. Non-variable
expenses leveraged 180 basis points primarily resulting from lower
marketing expenses, lower non-cash stock-based compensation
expense, decreased professional fees, and COVID-19 related savings,
including lower travel expenses and other cost savings initiatives,
partially offset by higher fixed selling expenses.
Operating income increased 43% to $62.7 million, to 14.9%
of net sales, compared to $43.8 million, or 11.3% of net sales,
during the prior year.
Adjusted operating income increased 29% to $67.4 million,
to 16.0% of net sales, compared to $52.2 million, or 13.5% of net
sales, during the same period last year.
Net income increased 72% to $42.0 million, or 10.0% of
net sales, compared to $24.4 million, or 6.3% of net sales, in the
prior year; Net income per diluted share increased 69% to
$0.48, compared to $0.28 per diluted share in the prior year.
Adjusted net income increased 48% to $45.5 million, or
10.8% of net sales, compared to $30.7 million in the prior year
period; Adjusted net income per diluted share increased 46%
to $0.52, compared to $0.36 per diluted share in the same period
last year.
Adjusted EBITDA increased 24% to $81.8 million, or 19.4%
of net sales, from $66.1 million, or 17.1% of net sales, during the
prior year.
Balance Sheet and Cash Flow
Highlights
Inventory decreased 23% to $138.8 million, compared to
$181.4 million at the end of the second quarter of 2019. While our
supply chain remained resilient during the second quarter,
inventory levels decreased significantly as a result of reduced
purchase orders early in the second quarter to align with demand
forecasts at the time and to provide enhanced financial flexibility
in the midst of the COVID-19 pandemic, coupled with the unplanned
nature of the demand surge in DTC net sales, as discussed
above.
Total debt, excluding finance leases and unamortized
deferred financing fees, was $292.5 million, compared to $309.1
million at the end of the second quarter of 2019. During the first
half of 2020, YETI made $7.5 million in mandatory debt payments and
repaid all precautionary first quarter borrowings under its
revolving credit facility of $50.0 million. At the end of the
second quarter of 2020, we had no outstanding borrowings and $150.0
million available for borrowing under our revolving credit
facility. Our ratio of net debt (as defined below) to adjusted
EBITDA for the trailing twelve months was 0.9 times at the end of
the second quarter of 2020 compared to 1.7 times at the end of the
same period last year.
Cash flow provided by operating activities was $72.4
million and capital expenditures were $7.2 million for the six
months ended June 27, 2020.
Ratio of Net Debt to Adjusted EBITDA Net debt as of June
27, 2020, which is total debt, excluding finance leases and
unamortized deferred financing fees, of $292.5 million less cash of
$127.5 million, divided by adjusted EBITDA for the trailing twelve
months was 0.9 times. Adjusted EBITDA for the trailing twelve
months ended June 27, 2020 was $187.3 million and is calculated
using the full year 2019 adjusted EBITDA of $171.6 million, less
adjusted EBITDA for the first six months of 2019 of $66.1 million,
plus adjusted EBITDA for the first six months of 2020 of $81.8
million.
Net debt as of June 29, 2019, which is total debt, excluding
unamortized deferred financing fees, of $309.1 million less cash of
$38.0 million, divided by adjusted EBITDA for the trailing twelve
months was 1.7 times. Adjusted EBITDA for the trailing twelve
months ending June 29, 2019 was $156.7 million and is calculated
using the full year 2018 adjusted EBITDA of $149.0 million, less
adjusted EBITDA for the first six months of 2018 of $58.4 million,
plus adjusted EBITDA for the first six months of 2019 of $66.1
million.
Adoption of New Lease Accounting Standard As previously
disclosed, YETI became a large accelerated filer at the end of
Fiscal 2019 and as such adopted the new lease standard, Accounting
Standards Codification Topic 842 (“ASC 842”), on a modified
retrospective basis, effective on the first day of Fiscal 2019. As
a result YETI recast certain amounts on its previously reported
financial statements for the period ended June 29, 2019 to reflect
the recognition of operating lease right-of-use assets and
operating lease liabilities and other reclassifications. The
adoption of ASC 842 had no impact to previously reported results of
operations for any interim period.
Conference Call Details A conference call to discuss the
second quarter of Fiscal 2020 financial results is scheduled for
today, August 6, 2020, 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 13706876. A replay will be available through August
20, 2020.
About YETI Holdings, Inc. Headquartered in Austin, Texas,
YETI is a global designer, retailer, and distributor of innovative
outdoor products. From coolers and drinkware to backpacks and bags,
YETI products are built to meet the unique and varying needs of
diverse outdoor pursuits, whether in the remote wilderness, at the
beach, or anywhere life takes our customers. By consistently
delivering high-performing, exceptional products, we have built a
strong following of brand loyalists throughout the world, ranging
from serious outdoor enthusiasts to individuals who simply value
products of uncompromising quality and design. We have an
unwavering commitment to outdoor and recreation communities, and we
are relentless in our pursuit of building superior products for
people to confidently enjoy life outdoors and beyond. For more
information, please visit www.YETI.com.
Non-GAAP Financial Measures 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, and, in the case of adjusted net
income, also adjusted for the loss on modification and
extinguishment of debt, including accelerated amortization of
deferred financing fees 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 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; loss on
modification and extinguishment of debt, including accelerated
amortization of deferred financing fees resulting from the early
prepayment of debt.
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 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 non-recurring 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, and loss on
modification and extinguishment of debt. Because of these
limitations, we rely primarily on our GAAP results. In addition, in
the case of our disclosure of adjusted EBITDA on a trailing twelve
month basis, we believe the presentation of our net debt to
adjusted EBITDA ratio, which is measured based on our trailing
twelve month adjusted EBITDA, also provides a useful measure to our
investors of our debt leverage and ability to meet our financial
obligations.
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.
Revised Non-GAAP Financial Measures Beginning in Fiscal
2020 As previously disclosed, following YETI’s initial full
year as a public company and beginning with the first quarter of
Fiscal 2020, YETI revised its definitions of certain non-GAAP
financial measures by eliminating various adjustments. These
revisions are intended to align with how management will evaluate
the performance of the business going forward. Specifically, YETI
will no longer include adjustments for investments in new retail
locations and international market expansion, transition to the
ongoing senior management team, and transition to a public
company.
YETI has recast its historical 2019 non-GAAP financial measures
to conform to the revised definitions on its investor relations
website at http://investors.yeti.com.
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, statements relating to
the current and future impacts of the COVID-19 pandemic on our
business and all statements relating to our expectations for
opportunity or growth, including those set forth in the quote from
YETI’s President and CEO, provided herein, constitute
forward-looking statements. 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: (i) uncertainty regarding global
economic conditions, particularly the uncertainty related to the
duration and impact of the rapidly evolving COVID-19 pandemic,
including its impact on global economic conditions; (ii) our
ability to maintain and strengthen our brand and generate and
maintain ongoing demand for our products; (iii) our ability to
successfully design, develop and market new products; (iv) our
ability to effectively manage our growth; (v) our ability to expand
into additional consumer markets, and our success in doing so; (vi)
the success of our international expansion plans; (vii) our ability
to compete effectively in the outdoor and recreation market and
protect our brand; (viii) the level of customer spending for our
products, which is sensitive to general economic conditions and
other factors; (ix) problems with, or loss of, our third-party
contract manufacturers and suppliers, or an inability to obtain raw
materials; (x) fluctuations in the cost and availability of raw
materials, equipment, labor, and transportation and subsequent
manufacturing delays or increased costs; (xi) our ability to
accurately forecast demand for our products and our results of
operations; (xii) our relationships with our national, regional,
and independent retail partners, who account for a significant
portion of our sales; (xiii) the impact of natural disasters and
failures of our information technology on our operations and the
operations of our manufacturing partners; (xiv) our ability to
attract and retain skilled personnel and senior management, and to
maintain the continued efforts of our management and key employees;
and (xv) the impact of our indebtedness on our ability to invest in
the ongoing needs of our business. You should read our filings with
the United States Securities and Exchange Commission (the “SEC”),
including our Annual Report on Form 10-K for the year ended
December 28, 2019 and our Quarterly Report on Form 10-Q for the
quarter ended March 28, 2020, for a more extensive list of factors,
that may be amended, supplemented or superseded from time to time
by other reports YETI files with the SEC, that could affect
results. 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. Many of the foregoing risks and uncertainties may be
exacerbated by the COVID-19 pandemic and any worsening of the
global business and economic environment as a result.
YETI HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per
share amounts)
Three Months Ended
Six Months Ended
June 27, 2020
June 29, 2019
June 27, 2020
June 29, 2019
Net sales
$
246,938
$
231,654
$
421,350
$
387,007
Cost of goods sold
109,413
115,377
191,367
194,103
Gross profit
137,525
116,277
229,983
192,904
Selling, general, and administrative
expenses
90,992
81,277
167,288
149,120
Operating income
46,533
35,000
62,695
43,784
Interest expense
(2,657
)
(5,695
)
(5,767
)
(11,762
)
Other income (expense)
900
49
(938
)
112
Income before income taxes
44,776
29,354
55,990
32,134
Income tax expense
(11,294
)
(7,131
)
(14,028
)
(7,744
)
Net income
$
33,482
$
22,223
$
41,962
$
24,390
Net income per share
Basic
$
0.39
$
0.26
$
0.48
$
0.29
Diluted
$
0.38
$
0.26
$
0.48
$
0.28
Weighted-average common shares
outstanding
Basic
86,937
84,577
86,883
84,387
Diluted
87,477
86,227
87,469
86,042
YETI HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands, except per
share amounts)
June 27, 2020
December 28,
2019
June 29,
2019(1)
ASSETS
Current assets
Cash
$
127,467
$
72,515
$
38,023
Accounts receivable, net
85,886
82,688
75,856
Inventory
138,782
185,700
181,354
Prepaid expenses and other current
assets
15,279
19,644
18,473
Total current assets
367,414
360,547
313,706
Property and equipment, net
77,379
82,610
79,989
Operating lease right-of-use assets
34,963
37,768
34,588
Goodwill
54,293
54,293
54,293
Intangible assets, net
91,467
90,850
90,375
Deferred income taxes
1,050
1,082
1,306
Deferred charges and other assets
886
2,389
1,478
Total assets
$
627,452
$
629,539
$
575,735
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
41,447
$
83,823
$
101,538
Accrued expenses and other current
liabilities
42,003
42,088
43,699
Taxes payable
12,687
3,329
1,766
Accrued payroll and related costs
8,002
18,119
8,149
Operating lease liabilities
8,086
7,768
5,599
Current maturities of long-term debt
18,941
15,185
42,138
Total current liabilities
131,166
170,312
202,889
Long-term debt, net of current portion
270,846
281,715
263,258
Operating lease liabilities,
non-current
38,589
42,200
41,517
Other liabilities
17,822
13,307
4,119
Total liabilities
458,423
507,534
511,783
Commitments and contingencies
Stockholders’ Equity
Common stock, par value $0.01; 600,000
shares authorized; 87,004, 86,774, and 84,820 shares outstanding at
June 27, 2020, December 28, 2019, and June 29, 2019,
respectively
870
868
848
Preferred stock, par value $0.01; 30,000
shares authorized; no shares issued or outstanding
—
—
—
Additional paid-in capital
315,405
310,678
278,671
Accumulated deficit
(147,583
)
(189,545
)
(215,533
)
Accumulated other comprehensive income
(loss)
337
4
(34
)
Total stockholders’ equity
169,029
122,005
63,952
Total liabilities and stockholders’
equity
$
627,452
$
629,539
$
575,735
____________________
(1)
We adopted the new lease standard, ASC
842, on a modified retrospective basis, effective on the first day
of Fiscal 2019. In accordance with the standard, we recast certain
amounts on our unaudited condensed consolidated balance sheet to
reflect the recognition of operating lease right-of-use assets and
operating lease liabilities and other reclassifications.
YETI HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands, except per
share amounts)
Six Months Ended
June 27, 2020
June 29,
2019(1)
Cash Flows from Operating
Activities:
Net income
$
41,962
$
24,390
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
15,359
13,801
Amortization of deferred financing
fees
478
1,133
Stock-based compensation
4,036
8,286
Deferred income taxes
3,511
6,310
Other
1,239
—
Impairment of long-lived assets
632
97
Changes in operating assets and
liabilities:
Accounts receivable, net
(4,433
)
(15,945
)
Inventory
46,723
(36,225
)
Other current assets
4,351
(5,494
)
Accounts payable and accrued expenses
(52,781
)
16,491
Taxes payable
9,393
(4,655
)
Other
1,881
1,577
Net cash provided by operating
activities
72,351
9,766
Cash Flows from Investing
Activities:
Purchases of property and equipment
(7,160
)
(16,786
)
Additions of intangibles, net
(3,769
)
(13,214
)
Net cash used in investing activities
(10,929
)
(30,000
)
Cash Flows from Financing
Activities:
Borrowings under revolving line of
credit
50,000
—
Repayments under revolving line of
credit
(50,000
)
—
Repayments of long-term debt
(7,500
)
(23,750
)
Proceeds from employee stock
transactions
1,397
2,064
Taxes paid in connection with employee
stock transactions
(704
)
—
Finance lease principal payment
(91
)
—
Net cash used in financing activities
(6,898
)
(21,686
)
Effect of exchange rate changes on
cash
428
(108
)
Net increase (decrease) in cash
54,952
(42,028
)
Cash, beginning of period
72,515
80,051
Cash, end of period
$
127,467
$
38,023
____________________
(1)
We adopted the new lease standard, ASC
842, on a modified retrospective basis, effective on the first day
of Fiscal 2019. In accordance with the standard, we recast certain
amounts on our unaudited condensed consolidated statement of cash
flows to reflect the recognition of operating lease right-of-use
assets and operating lease liabilities and other reclassifications
our unaudited condensed consolidated balance sheet.
YETI HOLDINGS, INC.
SELECTED FINANCIAL
DATA
Reconciliation of GAAP to
Non-GAAP Financial Information
(Unaudited) (In thousands
except per share amounts)
Three Months Ended
Six Months Ended
June 27, 2020
June 29, 2019
June 27, 2020
June 29, 2019
Operating income
$
46,533
$
35,000
$
62,695
$
43,784
Adjustments:
Non-cash stock-based compensation
expense(1)
2,181
4,281
4,036
8,286
Long-lived asset impairment(1)
632
3
632
97
Adjusted operating income
$
49,346
$
39,284
$
67,363
$
52,167
Net income
$
33,482
$
22,223
$
41,962
$
24,390
Adjustments:
Non-cash stock-based compensation
expense(1)
2,181
4,281
4,036
8,286
Long-lived asset impairment(1)
632
3
632
97
Tax impact of adjusting items(2)
(688
)
(1,050
)
(1,143
)
(2,054
)
Adjusted net income
$
35,607
$
25,457
$
45,487
$
30,719
Net income
$
33,482
$
22,223
$
41,962
$
24,390
Adjustments:
Interest expense
2,657
5,695
5,767
11,762
Income tax expense
11,294
7,131
14,028
7,744
Depreciation and amortization
expense(3)
7,697
7,262
15,359
13,801
Non-cash stock-based compensation
expense(1)
2,181
4,281
4,036
8,286
Long-lived asset impairment(1)
632
3
632
97
Adjusted EBITDA
$
57,943
$
46,595
$
81,784
$
66,080
Net sales
$
246,938
$
231,654
$
421,350
$
387,007
Operating income as a % of net sales
18.8
%
15.1
%
14.9
%
11.3
%
Adjusted operating income as a % of net
sales
20.0
%
17.0
%
16.0
%
13.5
%
Net income as a % of net sales
13.6
%
9.6
%
10.0
%
6.3
%
Adjusted net income as a % of net
sales
14.4
%
11.0
%
10.8
%
7.9
%
Adjusted EBITDA as a % of net sales
23.5
%
20.1
%
19.4
%
17.1
%
Net income per diluted share
$
0.38
$
0.26
$
0.48
$
0.28
Adjusted net income per diluted share
$
0.41
$
0.30
$
0.52
$
0.36
Weighted average common shares outstanding
- diluted
87,477
86,227
87,469
86,042
____________________
(1)
These costs are reported in SG&A expenses.
(2)
Represents the tax impact of adjustments calculated at an
expected statutory tax rate of 24.5% for both the three months
ended June 27, 2020 and June 29, 2019. For both the six months
ended June 27, 2020 and June 29, 2019, the tax rate used to
calculate the tax impact of adjustments was 24.5%.
(3)
Depreciation and amortization expenses are reported in SG&A
expenses and cost of goods sold.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806005208/en/
Investor Relations Contact: Tom Shaw, 512-271-6332
Investor.relations@yeti.com
Media Contact: YETI Holdings, Inc. Media Hotline
Media@yeti.com
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