Net Sales Increased 15%
Gross Margin Expanded 700 Basis Points
Operating Income Increased 171%
Adjusted Operating Income Increased 89%
Updates 2019 Outlook
AUSTIN, Texas--(BUSINESS WIRE)--
YETI Holdings, Inc. (“YETI”) (NYSE: YETI) today announced its financial
results for the first quarter ended March 30, 2019.
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, commented, “We are
off to a great start in 2019 with solid growth across our product
categories and distribution channels. Additionally, our ongoing focus on
disciplined growth allows us to drive stronger profitability while
making the investments required to expand brand and product awareness to
existing and new customers. As we continue to execute our strategic
plan, we are raising our full year outlook and remain excited about the
tremendous opportunities ahead for the company.”
Q1 2019 Highlights
Net sales increased 15% to $155.4 million compared with $135.3
million during the same period last year. Net sales growth benefited by
approximately 400 basis points from shipments late in the quarter that
were expected to ship in the second quarter.
-
Direct-to-consumer (“DTC”) channel net sales increased 28% to $61.7
million, compared to $48.3 million in the prior year quarter, led by
strong performance in the Drinkware category.
-
Wholesale channel net sales increased 8% to $93.6 million, compared to
$87.0 million in the same period last year, primarily driven by
Coolers & Equipment.
-
Drinkware net sales increased 20% to $91.0 million compared to
$75.8 million in the prior year quarter, primarily driven by the
continued expansion of our Drinkware product offerings, including the
introduction of new colorways and strong demand for customization.
-
Coolers & Equipment net sales increased 11% to $59.7 million, compared
to $53.7 million in the same period last year, primarily driven by
color updates across several hard and soft cooler lines, as well as
the introduction of the CaminoTM Carryall bag to our
wholesale channel. Net sales during the period include $1.2 million of
net sales related to our Boomer 8 Dog Bowl, which was previously
reported in our Other category.
Gross profit increased 34% to $76.6 million, or 49.3% of net
sales, compared to $57.2 million, or 42.3% of net sales, in the first
quarter of 2018. The 700 basis point increase in gross margin was driven
by cost improvements across our product portfolio, a favorable shift in
our channel mix led by an increase in DTC channel net sales, the absence
of an inventory charge taken in the prior year due to a fire at a
vendor’s warehouse facility, and lower inbound freight expenses,
partially offset by higher tariff rates.
Selling, general, and administrative (“SG&A”) expenses
increased to $67.8 million, or 43.7% of net sales, compared to $53.9
million, or 39.9% of net sales, in the first quarter of 2018.
Approximately 290 basis points of the 380 basis points increase was
attributable to higher selling expenses, including marketing and
outbound freight. The balance of the increase was primarily due to
incremental costs associated with our transition to becoming a public
company, higher information technology-related costs, and increased
non-cash stock-based compensation expense, partially offset by other
general and administrative cost savings.
Operating income increased 171% to $8.8 million, or 330 basis
points to 5.7% of net sales, compared to $3.2 million, or 2.4% of net
sales, during the prior year quarter.
Adjusted operating income increased 89% to $14.7 million, or 370
basis points, to 9.4% of net sales, compared to $7.7 million, or 5.7% of
net sales, during the same period last year.
Net income was $2.2 million, or $0.03 per diluted share, compared
to a net loss of $3.3 million, or a $0.04 net loss per diluted share, in
the prior year quarter.
Adjusted net income increased to $6.6 million, or $0.08 per
diluted share, compared to adjusted net income of $0.3 million, or $0.00
per diluted share, in the prior year quarter.
Adjusted EBITDA increased 58% to $21.3 million from $13.4 million
during the same period last year.
Balance Sheet and Cash Flow Highlights
Inventory increased 4% to $164.3 million, compared to $158.5
million at the end of the first quarter of 2018.
Total debt, excluding unamortized deferred financing fees, was
$321.8 million, compared to $473.3 million at the end of the first
quarter of 2018. During the first quarter of 2019, we made a $11.1
million mandatory debt payment. Our ratio of net debt to adjusted EBITDA
for the trailing twelve months (as defined below) was 1.9 times at the
end of the first quarter of 2019, compared to 4.0 times at the end of
the same period last year.
Cash flow used in operating activities was $30.0 million and
capital expenditures were $8.4 million for first quarter of 2019.
Updated 2019 Outlook
-
Net sales are still expected to increase between 11.5% and 13%
compared to 2018, with growth across both channels and led by the DTC
channel;
-
Operating income as a percentage of net sales is now expected
to be between 14.2% and 14.5%, reflecting margin expansion of 110 to
140 basis points, primarily driven by higher gross margin (versus the
previous outlook of 13.9% and 14.4%, reflecting margin expansion of 80
to 130 basis points);
-
Adjusted operating income as a percentage of net sales is now
expected to be between 16.2% and 16.5%, reflecting margin expansion of
30 to 60 basis points, primarily driven by higher gross margin (versus
the previous outlook of 15.9% and 16.3%, reflecting margin expansion
of zero to 40 basis points);
-
An effective tax rate at a more normalized level of
approximately 24.5%, which remains unchanged from the previous outlook;
-
Net income per diluted share is now expected to be between
$0.87 and $0.90, reflecting 25% and 31% growth (versus the previous
outlook of $0.84 and $0.89, reflecting 22% and 29% growth); assuming a
normalized tax rate of 24.5% in 2018 (the effective tax rate for 2018
was 17%), earnings growth would be between 38% and 44% (versus the
previous outlook of 34% and 42%);
-
Adjusted net income per diluted share is now expected to be
between $1.02 and $1.06, reflecting 13% to 17% growth (versus the
previous outlook of $0.99 and $1.04, reflecting 10% to 15% growth);
assuming a normalized tax rate of 24.5% in 2018 (the effective tax
rate for 2018 was 17%), adjusted earnings growth would be between 21%
and 26% (versus the previous outlook of 18% and 24%);
-
Diluted weighted average shares outstanding of 86 million,
which remains unchanged from the previous outlook;
-
Adjusted EBITDA is now expected to be between $171.9 million
and $176.3 million, reflecting 15% to 18% growth (versus the previous
outlook of $169.0 million and $174.3 million, reflecting 13% to 17%
growth);
-
Capital expenditures are still expected to be 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 2019,
which remains unchanged from the previous outlook, compared to 1.7
times at the end of 2018.
Ratio of Net Debt to Adjusted EBITDA Trailing Twelve Months
Net debt for the first quarter of 2019, which is total debt of $321.8
million less cash of $19.0 million, divided by adjusted EBITDA for the
trailing twelve months was 1.9 times. Adjusted EBITDA for the trailing
twelve months ending March 30, 2019 was $156.9 million and is calculated
using the full year 2018 adjusted EBITDA of $149.0 million less adjusted
EBITDA for the first quarter of 2018 of $13.4 million, plus adjusted
EBITDA for the first quarter of 2019 of $21.3 million.
Net debt for the first quarter of 2018, which is total debt less cash of
$60.4 million, divided by adjusted EBITDA for the trailing twelve months
was 4.0 times. Adjusted EBITDA for the trailing twelve months ending
March 31, 2018 was $104.4 million and is calculated using the full year
2017 adjusted EBITDA of $97.5 million less adjusted EBITDA for the first
quarter of 2017 of $6.5 million, plus adjusted EBITDA for the first
quarter of 2018 of $13.4 million.
Conference Call Details
A conference call to discuss the first quarter of 2019 financial results
is scheduled for today, May 2, 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 13689723. The
replay will be available until May 16, 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 mission is to ensure that each YETI product delivers exceptional
performance and durability in any environment, whether in the remote
wilderness, at the beach, or anywhere else life takes our customers. By
consistently delivering high-performing products, we have built a
following of engaged brand loyalists throughout the United States,
Canada, Japan, 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 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 YETI’s President and CEO, and the 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: (i) our ability to maintain and strengthen our brand and generate
and maintain ongoing demand for our products; (ii) our ability to
successfully design and develop new products; (iii) our ability to
effectively manage our growth; (iv) our ability to expand into
additional consumer markets, and our success in doing so; (v) the
success of our international expansion plans; (vi) our ability to
compete effectively in the outdoor and recreation market and protect our
brand; (v) the level of customer spending for our products, which is
sensitive to general economic conditions and other factors; (vi)
problems with, or loss of, our third-party contract manufacturers and
suppliers, or an inability to obtain raw materials; (vii) fluctuations
in the cost and availability of raw materials, equipment, labor, and
transportation and subsequent manufacturing delays or increased costs;
(viii) our ability to accurately forecast demand for our products and
our results of operations; (ix) our relationships with our national,
regional, and independent retail partners, who account for a significant
portion of our sales; (x) the impact of natural disasters and failures
of our information technology on our operations and the operations of
our manufacturing partners; (xi) our ability to attract and retain
skilled personnel and senior management, and to maintain the continued
efforts of our management and key employees; and (xii) 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 30, 2018, 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.
|
|
|
|
|
|
|
|
YETI HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 30,
|
|
March 31,
|
|
|
|
|
2019
|
|
2018
|
|
Net sales
|
|
|
|
$
|
155,353
|
|
|
$
|
135,257
|
|
|
Cost of goods sold
|
|
|
|
|
78,726
|
|
|
|
78,068
|
|
|
Gross profit
|
|
|
|
|
76,627
|
|
|
|
57,189
|
|
|
Selling, general, and administrative expenses
|
|
|
|
|
67,843
|
|
|
|
53,945
|
|
|
Operating income
|
|
|
|
|
8,784
|
|
|
|
3,244
|
|
|
Interest expense
|
|
|
|
|
(6,067
|
)
|
|
|
(8,126
|
)
|
|
Other income (expense)
|
|
|
|
|
63
|
|
|
|
(18
|
)
|
|
Income (loss) before income taxes
|
|
|
|
|
2,780
|
|
|
|
(4,900
|
)
|
|
Income tax (expense) benefit
|
|
|
|
|
(613
|
)
|
|
|
1,639
|
|
|
Net income (loss)
|
|
|
|
$
|
2,167
|
|
|
$
|
(3,261
|
)
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
Diluted
|
|
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
84,196
|
|
|
|
81,419
|
|
|
Diluted
|
|
|
|
|
85,857
|
|
|
|
81,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YETI HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30,
|
|
December 29,
|
|
March 31,
|
|
|
|
|
2019
|
|
2018
|
|
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
$
|
19,008
|
|
|
$
|
80,051
|
|
|
$
|
60,404
|
|
|
Accounts receivable, net
|
|
|
|
|
62,998
|
|
|
|
59,328
|
|
|
|
60,412
|
|
|
Inventory
|
|
|
|
|
164,299
|
|
|
|
145,423
|
|
|
|
158,537
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
20,069
|
|
|
|
12,211
|
|
|
|
10,514
|
|
|
Total current assets
|
|
|
|
|
266,374
|
|
|
|
297,013
|
|
|
|
289,867
|
|
|
Property and equipment, net
|
|
|
|
|
78,221
|
|
|
|
74,097
|
|
|
|
71,486
|
|
|
Goodwill
|
|
|
|
|
54,293
|
|
|
|
54,293
|
|
|
|
54,293
|
|
|
Intangible assets, net
|
|
|
|
|
90,036
|
|
|
|
80,019
|
|
|
|
75,957
|
|
|
Deferred income taxes
|
|
|
|
|
5,740
|
|
|
|
7,777
|
|
|
|
9,547
|
|
|
Deferred charges and other assets
|
|
|
|
|
1,122
|
|
|
|
1,014
|
|
|
|
1,043
|
|
|
Total assets
|
|
|
|
$
|
495,786
|
|
|
$
|
514,213
|
|
|
$
|
502,193
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
78,225
|
|
|
$
|
68,737
|
|
|
$
|
51,637
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
44,583
|
|
|
|
53,022
|
|
|
|
35,553
|
|
|
Taxes payable
|
|
|
|
|
278
|
|
|
|
6,390
|
|
|
|
8,621
|
|
|
Accrued payroll and related costs
|
|
|
|
|
5,778
|
|
|
|
15,551
|
|
|
|
7,748
|
|
|
Current maturities of long-term debt
|
|
|
|
|
43,638
|
|
|
|
43,638
|
|
|
|
47,050
|
|
|
Total current liabilities
|
|
|
|
|
172,502
|
|
|
|
187,338
|
|
|
|
150,609
|
|
|
Long-term debt, net of current portion
|
|
|
|
|
273,825
|
|
|
|
284,376
|
|
|
|
417,980
|
|
|
Other liabilities
|
|
|
|
|
13,988
|
|
|
|
13,528
|
|
|
|
12,573
|
|
|
Total liabilities
|
|
|
|
|
460,315
|
|
|
|
485,242
|
|
|
|
581,162
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01; 600,000 shares authorized; 84,196,
84,196, and 81,437 shares outstanding at March 30, 2019, December
29, 2018, and March 31, 2018, respectively
|
|
|
|
|
842
|
|
|
|
842
|
|
|
|
811
|
|
|
Preferred stock, par value $0.01; 30,000 shares authorized; no
shares issued or outstanding
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Additional paid-in capital
|
|
|
|
|
272,332
|
|
|
|
268,327
|
|
|
|
220,138
|
|
|
Accumulated deficit
|
|
|
|
|
(237,596
|
)
|
|
|
(240,104
|
)
|
|
|
(299,956
|
)
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
|
(107
|
)
|
|
|
(94
|
)
|
|
|
38
|
|
|
Total stockholders’ equity (deficit)
|
|
|
|
|
35,471
|
|
|
|
28,971
|
|
|
|
(78,969
|
)
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
495,786
|
|
|
$
|
514,213
|
|
|
$
|
502,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YETI HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 30,
|
|
March 31,
|
|
|
|
|
2019
|
|
2018
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
2,167
|
|
|
$
|
(3,261
|
)
|
|
Adjustments to reconcile net income to cash (used in) provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
6,539
|
|
|
|
5,703
|
|
|
Amortization of deferred financing fees
|
|
|
|
|
574
|
|
|
|
736
|
|
|
Stock-based compensation
|
|
|
|
|
4,005
|
|
|
|
3,010
|
|
|
Deferred income taxes
|
|
|
|
|
1,875
|
|
|
|
457
|
|
|
Impairment of long-lived assets
|
|
|
|
|
94
|
|
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
(3,178
|
)
|
|
|
6,711
|
|
|
Inventory
|
|
|
|
|
(19,211
|
)
|
|
|
16,534
|
|
|
Other current assets
|
|
|
|
|
(7,388
|
)
|
|
|
(3,385
|
)
|
|
Income tax receivable
|
|
|
|
|
(452
|
)
|
|
|
—
|
|
|
Accounts payable and accrued expenses
|
|
|
|
|
(9,086
|
)
|
|
|
1,824
|
|
|
Taxes payable
|
|
|
|
|
(6,132
|
)
|
|
|
(3,656
|
)
|
|
Other
|
|
|
|
|
151
|
|
|
|
627
|
|
|
Net cash (used in) provided by operating activities
|
|
|
|
|
(30,042
|
)
|
|
|
25,300
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(8,380
|
)
|
|
|
(2,205
|
)
|
|
Purchases of intangibles, net
|
|
|
|
|
(11,436
|
)
|
|
|
(2,929
|
)
|
|
Net cash used in investing activities
|
|
|
|
|
(19,816
|
)
|
|
|
(5,134
|
)
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
Repayments of long-term debt
|
|
|
|
|
(11,125
|
)
|
|
|
(11,388
|
)
|
|
Cash paid for repurchase of common stock
|
|
|
|
|
—
|
|
|
|
(1,967
|
)
|
|
Proceeds from employee stock transactions
|
|
|
|
|
—
|
|
|
|
53
|
|
|
Taxes paid in connection with exercise of stock options
|
|
|
|
|
—
|
|
|
|
(57
|
)
|
|
Payments of dividends
|
|
|
|
|
—
|
|
|
|
(96
|
)
|
|
Net cash used in financing activities
|
|
|
|
|
(11,125
|
)
|
|
|
(13,455
|
)
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(60
|
)
|
|
|
43
|
|
|
Net (decrease) increase in cash
|
|
|
|
|
(61,043
|
)
|
|
|
6,754
|
|
|
Cash, beginning of period
|
|
|
|
|
80,051
|
|
|
|
53,650
|
|
|
Cash, end of period
|
|
|
|
$
|
19,008
|
|
|
$
|
60,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YETI HOLDINGS, INC.
SELECTED FINANCIAL DATA
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 30,
|
|
March 31,
|
|
|
|
|
2019
|
|
2018
|
|
Operating income
|
|
|
|
$
|
8,784
|
|
|
$
|
3,244
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense(1) |
|
|
|
|
4,005
|
|
|
|
3,010
|
|
|
Long-lived asset impairment(1) |
|
|
|
|
94
|
|
|
|
—
|
|
|
Investments in new retail locations and international market
expansion(1)(2) |
|
|
|
|
228
|
|
|
|
240
|
|
|
Transition to Cortec majority ownership(1)(3) |
|
|
|
|
—
|
|
|
|
750
|
|
|
Transition to the ongoing senior management team(1)(4) |
|
|
|
|
100
|
|
|
|
466
|
|
|
Transition to a public company(1)(5) |
|
|
|
|
1,469
|
|
|
|
38
|
|
|
Adjusted operating income
|
|
|
|
$
|
14,680
|
|
|
$
|
7,748
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
2,167
|
|
|
$
|
(3,261
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense(1) |
|
|
|
|
4,005
|
|
|
|
3,010
|
|
|
Long-lived asset impairment(1) |
|
|
|
|
94
|
|
|
|
—
|
|
|
Investments in new retail locations and international market
expansion(1)(2) |
|
|
|
|
228
|
|
|
|
240
|
|
|
Transition to Cortec majority ownership(1)(3) |
|
|
|
|
—
|
|
|
|
750
|
|
|
Transition to the ongoing senior management team(1)(4) |
|
|
|
|
100
|
|
|
|
466
|
|
|
Transition to a public company(1)(5) |
|
|
|
|
1,469
|
|
|
|
38
|
|
|
Tax impact of adjusting items(6) |
|
|
|
|
(1,444
|
)
|
|
|
(982
|
)
|
|
Adjusted net income
|
|
|
|
$
|
6,619
|
|
|
$
|
261
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
2,167
|
|
|
$
|
(3,261
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
6,067
|
|
|
|
8,126
|
|
|
Income tax expense (benefit)
|
|
|
|
|
613
|
|
|
|
(1,639
|
)
|
|
Depreciation and amortization expense(7) |
|
|
|
|
6,539
|
|
|
|
5,703
|
|
|
Non-cash stock-based compensation expense(1) |
|
|
|
|
4,005
|
|
|
|
3,010
|
|
|
Long-lived asset impairment(1) |
|
|
|
|
94
|
|
|
|
—
|
|
|
Investments in new retail locations and international market
expansion(1)(2) |
|
|
|
|
228
|
|
|
|
240
|
|
|
Transition to Cortec majority ownership(1)(3) |
|
|
|
|
—
|
|
|
|
750
|
|
|
Transition to the ongoing senior management team(1)(4) |
|
|
|
|
100
|
|
|
|
466
|
|
|
Transition to a public company(1)(5) |
|
|
|
|
1,469
|
|
|
|
38
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
21,282
|
|
|
$
|
13,433
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
155,353
|
|
|
$
|
135,257
|
|
|
Operating income as a % of net sales
|
|
|
|
|
5.7
|
%
|
|
|
2.4
|
%
|
|
Adjusted operating income as a % of net sales
|
|
|
|
|
9.4
|
%
|
|
|
5.7
|
%
|
|
Net income (loss) as a % of net sales
|
|
|
|
|
1.4
|
%
|
|
|
(2.4
|
)%
|
|
Adjusted net income as a % of net sales
|
|
|
|
|
4.3
|
%
|
|
|
0.2
|
%
|
|
Adjusted EBITDA as a % of net sales
|
|
|
|
|
13.7
|
%
|
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share
|
|
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
Adjusted net income per diluted share
|
|
|
|
$
|
0.08
|
|
|
$
|
0.00
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
|
85,857
|
|
|
|
81,419
|
|
_________________________
|
(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 in
October 2018.
|
|
(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.
|
|
(6)
|
|
|
|
Represents the tax impact of adjustments calculated at an expected
statutory tax rate of 24.5% and 21.8% for the first quarter of 2019
and 2018, respectively.
|
|
(7)
|
|
|
|
Depreciation and amortization expenses are reported in SG&A expenses
and cost of goods sold.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YETI HOLDINGS, INC.
UPDATED 2019 OUTLOOK
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Updated 2019 Outlook
|
|
|
|
|
Low
|
|
High
|
|
Operating income
|
|
|
|
$
|
123,287
|
|
|
$
|
127,666
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense(1) |
|
|
|
|
11,860
|
|
|
|
11,860
|
|
|
Long-lived asset impairment(1) |
|
|
|
|
94
|
|
|
|
94
|
|
|
Investments in new retail locations and international market
expansion(1)(2) |
|
|
|
|
1,223
|
|
|
|
1,223
|
|
|
Transition to the ongoing senior management team(1)(3) |
|
|
|
|
100
|
|
|
|
100
|
|
|
Transition to a public company(1)(4) |
|
|
|
|
4,476
|
|
|
|
4,476
|
|
|
Adjusted operating income
|
|
|
|
$
|
141,040
|
|
|
$
|
145,419
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
74,502
|
|
|
$
|
77,808
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense(1) |
|
|
|
|
11,860
|
|
|
|
11,860
|
|
|
Long-lived asset impairment(1) |
|
|
|
|
94
|
|
|
|
94
|
|
|
Investments in new retail locations and international market
expansion(1)(2) |
|
|
|
|
1,223
|
|
|
|
1,223
|
|
|
Transition to the ongoing senior management team(1)(3) |
|
|
|
|
100
|
|
|
|
100
|
|
|
Transition to a public company(1)(4) |
|
|
|
|
4,476
|
|
|
|
4,476
|
|
|
Tax impact of adjusting items(5) |
|
|
|
|
(4,347
|
)
|
|
|
(4,347
|
)
|
|
Adjusted net income
|
|
|
|
$
|
87,908
|
|
|
$
|
91,214
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
74,502
|
|
|
$
|
77,808
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
24,624
|
|
|
|
24,624
|
|
|
Income tax expense
|
|
|
|
|
24,161
|
|
|
|
25,234
|
|
|
Depreciation and amortization expense(6) |
|
|
|
|
30,900
|
|
|
|
30,900
|
|
|
Non-cash stock-based compensation expense(1) |
|
|
|
|
11,860
|
|
|
|
11,860
|
|
|
Long-lived asset impairment(1) |
|
|
|
|
94
|
|
|
|
94
|
|
|
Investments in new retail locations and international market
expansion(1)(2) |
|
|
|
|
1,223
|
|
|
|
1,223
|
|
|
Transition to the ongoing senior management team(1)(3) |
|
|
|
|
100
|
|
|
|
100
|
|
|
Transition to a public company(1)(4) |
|
|
|
|
4,476
|
|
|
|
4,476
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
171,940
|
|
|
$
|
176,319
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
868,399
|
|
|
$
|
880,082
|
|
|
Operating income as a % of net sales
|
|
|
|
|
14.2
|
%
|
|
|
14.5
|
%
|
|
Adjusted operating income as a % of net sales
|
|
|
|
|
16.2
|
%
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
Net income per diluted share
|
|
|
|
$
|
0.87
|
|
|
$
|
0.90
|
|
|
Adjusted net income per diluted share
|
|
|
|
$
|
1.02
|
|
|
$
|
1.06
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
|
86,031
|
|
|
|
86,031
|
|
_________________________
|
(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 severance, recruiting, and relocation costs related to
the transition to our ongoing senior management team.
|
|
(4)
|
|
|
|
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.
|
|
(5)
|
|
|
|
Represents tax impact of adjustments calculated at an expected
statutory tax rate of 24.5%.
|
|
(6)
|
|
|
|
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/20190502005223/en/
Investor Relations Contact:
Tom Shaw, 512-271-6332
Investor.relations@yeti.com
Media Contact:
Alecia Pulman, 203-682-8224
alecia.pulman@icrinc.com
Brittany Fraser, 646-277-1231
brittany.fraser@icrinc.com
Source: YETI Holdings, Inc.