News Details

YETI Reports Fourth Quarter and Fiscal Year 2021 Results

02/17/2022

Fourth Quarter Net Sales Increased 18%; Full Year Increased 29%

Full Year Operating Margin of 19.5%; Adjusted Operating Margin of 20.9%

Fourth Quarter EPS Increased 15%; Adjusted EPS Increased 18%

Full Year EPS Increased 36%; Adjusted EPS Increased 37%

Provides Fiscal Year 2022 Outlook

YETI Holdings, Inc. (“YETI”) (NYSE: YETI) today announced its financial results for the fourth quarter and fiscal year ended January 1, 2022. The 13-week fourth quarter and 52-week fiscal year ended January 1, 2022 are compared to the 14-week fourth quarter and 53-week fiscal year ended January 2, 2021.

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 Measures,” 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, “2021 was an incredible year for YETI, achieving several milestones during our fourth year as a public company. Today we are reporting nearly 30% net sales growth, adjusted operating margin expansion to approximately 21%, and balance sheet strength with over $300 million of cash on hand. We drove demand across our omni-channel with 35% growth in our DTC business, delivered strong performance in both our product categories of drinkware and coolers and equipment, and approached a 10% international sales mix. This performance was capped by fourth quarter net sales growth of 18%, exceeding the high-end of our outlook despite the many supply chain challenges facing the entire industry. Looking forward, as we continue to maneuver through the varied supply chain disruptions and pressures, I remain incredibly confident in the demand for the YETI brand.”

For the Three Months Ended January 1, 2022 (13 Week Period)

Net sales increased 18% to $443.1 million, compared to $375.8 million during the same period last year.

  • Direct-to-consumer (“DTC”) channel net sales increased 21% to $263.9 million, compared to $217.8 million in the prior year quarter, driven by strong performance in both Drinkware and Coolers & Equipment. The DTC channel grew to 60% of net sales, compared to 58% in the prior year period.
  • Wholesale channel net sales increased 13% to $179.2 million, compared to $158.0 million in the same period last year, primarily driven by Drinkware.
  • Drinkware net sales increased 21% to $285.6 million, compared to $235.7 million in the prior year quarter, 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 13% to $151.6 million, compared to $134.3 million in the same period last year, driven by strong performance in bags, outdoor living products, hard coolers and soft coolers.

Gross profit increased 13% to $254.8 million, or 57.5% of net sales, compared to $224.8 million, or 59.8% of net sales, in the fourth quarter of 2020. The 230 basis point decrease in gross margin was primarily driven by higher inbound freight rates, the unfavorable impact of the non-renewal of the Global System of Preferences (“GSP”) program on import duties and product input cost inflation, partially offset by lower inventory reserves.

Selling, general, and administrative (“SG&A”) expenses increased 12% to $161.1 million, compared to $143.4 million in the fourth quarter of 2020. As a percentage of net sales, SG&A expenses decreased 190 basis points to 36.3% from 38.2% in the prior year period, primarily driven by lower planned marketing expenses, partially offset by higher variable expenses.

Operating income increased 15% to $93.7 million, or 21.2% of net sales, compared to $81.4 million, or 21.7% of net sales during the prior year quarter.

Adjusted operating income increased 18% to $99.8 million, or 22.5% of net sales, compared to $84.5 million, or 22.5% of net sales during the same period last year.

Net income increased 17% to $72.9 million, or 16.4% of net sales, compared to $62.4 million, or 16.6% of net sales in the prior year quarter; Net income per diluted share increased 15% to $0.82, compared to $0.71 per diluted share in the prior year quarter.

Adjusted net income increased 19% to $77.4 million, or 17.5% of net sales, compared to $65.2 million, or 17.4% of net sales in the prior year quarter; Adjusted net income per diluted share increased 18% to $0.87, compared to $0.74 per diluted share in the prior year quarter.

For the Twelve Months Ended January 1, 2022 (52 Weeks)

Net sales increased 29% to $1,411.0 million, compared to $1,091.7 million in the prior year.

  • DTC channel net sales increased 35% to $784.7 million, compared to $580.9 million in the prior year period, driven by both Drinkware and Coolers & Equipment. The DTC channel grew to 56% of net sales, compared to 53% in the prior year.
  • Wholesale channel net sales increased 23% to $626.3 million, compared to $510.9 million in the same period last year, primarily driven by both Drinkware and Coolers & Equipment.
  • Drinkware net sales increased 32% to $832.4 million, compared to $628.6 million in the prior year period, due to 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 24% to $551.9 million, compared to $446.6 million in the same period last year. The strong performance was driven by growth in bags, outdoor living products, soft coolers and hard coolers.

Gross profit increased 30% to $816.1 million, or 57.8% of net sales, compared to $628.8 million, or 57.6% of net sales in the prior year. Improvements in gross margin of 210 basis points were primarily driven by lower inventory reserves as well as a favorable mix shift to our DTC channel and product cost improvements, largely offset by 190 basis points of contraction primarily driven by higher inbound freight rates and the unfavorable impact of the non-renewal of the GSP program on import duties.

Selling, general, and administrative expenses increased 31% to $541.2 million, compared to $414.6 million in the prior year. The 2020 period included the benefit of cost reduction initiatives implemented in response to COVID-19. As a percentage of net sales, SG&A expenses increased 40 basis points to 38.4% from 38.0% in the prior year period. This increase was due to an increase in variable expenses, driven by the increased mix of our faster growing and higher gross margin DTC channel coupled with higher marketing expense.

Operating income increased 28% to $274.9 million, or 19.5% of net sales, compared to $214.2 million, or 19.6% of net sales during the prior year.

Adjusted operating income increased 32% to $295.1 million, or 20.9% of net sales, compared to $224.3 million, or 20.5% of net sales during the same period last year.

Net income increased 36% to $212.6 million, or 15.1% of net sales, compared to $155.8 million, or 14.3% of net sales in the prior year; Net income per diluted share increased 36% to $2.40, compared to $1.77 per diluted share in the prior year.

Adjusted net income increased 39% to $227.8 million, or 16.1% of net sales, compared to $164.2 million, or 15.0% of net sales in the prior year period; Adjusted net income per diluted share increased 37% to $2.57, compared to $1.87 per diluted share in the same period last year.

Balance Sheet and Cash Flow Highlights

Cash increased to$312.2 million, compared to $253.3 million at the end of Fiscal 2020.

Inventory increased 128% to $318.9 million, compared to $140.1 million at the end of Fiscal 2020, primarily due to the intentional inventory purchase order reductions taken during 2020 in response to COVID-19. Additionally, inventory was impacted by higher in-transit inventories in Fiscal 2021 due to extended lead times from ongoing supply chain disruptions, as well as the impact of higher inbound freight costs. The inventory increase represents a CAGR of 31% since the same period in 2019 compared to our net sales CAGR of 24% from full year 2019 to full year 2021.

Total debt, excluding finance leases and unamortized deferred financing fees, was $112.5 million, compared to $135.0 million at the end of the Fiscal 2020. During Fiscal 2021, YETI made mandatory debt payments of $22.5 million. At the end of Fiscal 2021, our cash balance exceeded total debt by $199.7 million.

Fiscal 2022 Outlook

Mr. Reintjes concluded, “Our strategic focus is unchanged in 2022, as we will continue to broaden reach and awareness of the brand, deliver uncompromising innovation, enhance and optimize our digital capabilities and expand our channel reach to scale internationally. Our net sales outlook of 18% to 20% growth is solidly above the high end of our long-term target. It reflects our strong conviction in our product pipeline, the opportunity to fulfill robust demand, and the ability to engage our global consumer. Despite the expectation of significant supply chain cost headwinds throughout the year, we remain focused on prioritizing strategic investments to support the long-term sustainable growth of the YETI brand.”

For Fiscal 2022, YETI expects:

  • Net sales to increase between 18% and 20% with sales growth weighted to the second half of the year;
  • Operating income as a percentage of net sales ofapproximately 18.5% and operating income to increase between 13% to 15%;
  • Adjusted operating income as a percentage of net sales of approximately 20% and adjusted operating income to increase between 13% to 15%;
  • An effective tax rate of approximately 24% (versus 21.8% in the prior year period);
  • Net income per diluted share between $2.62 and $2.67, reflecting a 9% to 11% increase, with earnings growth weighted to the second half of the year;
  • Adjusted net income per diluted share between $2.82 and $2.86, reflecting a 10% to 11% increase, with earnings growth weighted to the second half of the year;
  • Diluted weighted average shares outstanding of approximately 88.9 million; and
  • Capital expenditures of approximately $60 million primarily to support investments in technology and new product innovation and launches.

Conference Call Details

A conference call to discuss the fourth quarter and full year 2021 financial results is scheduled for today, February 17, 2022, 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 13726030. A replay will be available through March 3, 2022 by dialing 844-512-2921 (international callers, 412-317-6671).

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 bags and apparel, 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 you. 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

In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted operating income, adjusted net income, adjusted net income per diluted share as well as adjusted operating income and adjusted net income as a percentage of net sales. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to measure our profitability and to evaluate our financial performance. We believe that these measures are useful to investors as they are widely used measures of performance and to facilitate comparisons to other companies. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below.

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 relating to demand conditions, pricing conditions, expected sales levels, and our expectations for opportunity or growth, including those set forth in the quotes from YETI’s President and CEO, and the Fiscal 2022 financial outlook 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. For a more extensive list of factors that could materially affect our results, you should read our filings with the United States Securities and Exchange Commission (the “SEC”), including our Quarterly Report on Form 10-Q for the three months ended October 2, 2021, as such filings may be amended, supplemented or superseded from time to time by other reports YETI 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. Many of the foregoing risks and uncertainties may be exacerbated by the COVID-19 pandemic and its effects, including 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

 

Twelve Months Ended

 

January 1,
2022

 

January 2,
2021

 

January 1,
2022

 

January 2,
2021

Net sales

$

443,125

 

 

$

375,768

 

 

$

1,410,989

 

 

$

1,091,721

 

Cost of goods sold

 

188,316

 

 

 

150,924

 

 

 

594,876

 

 

 

462,918

 

Gross profit

 

254,809

 

 

 

224,844

 

 

 

816,113

 

 

 

628,803

 

Selling, general, and administrative expenses

 

161,074

 

 

 

143,418

 

 

 

541,175

 

 

 

414,570

 

Operating income

 

93,735

 

 

 

81,426

 

 

 

274,938

 

 

 

214,233

 

Interest expense

 

(820

)

 

 

(1,425

)

 

 

(3,339

)

 

 

(9,155

)

Other (expense) income

 

(697

)

 

 

1,143

 

 

 

(3,189

)

 

 

123

 

Income before income taxes

 

92,218

 

 

 

81,144

 

 

 

268,410

 

 

 

205,201

 

Income tax expense

 

(19,337

)

 

 

(18,750

)

 

 

(55,808

)

 

 

(49,400

)

Net income

$

72,881

 

 

$

62,394

 

 

$

212,602

 

 

$

155,801

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

Basic

$

0.83

 

 

$

0.72

 

 

$

2.43

 

 

$

1.79

 

Diluted

$

0.82

 

 

$

0.71

 

 

$

2.40

 

 

$

1.77

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

Basic

 

87,673

 

 

 

87,102

 

 

 

87,425

 

 

 

86,978

 

Diluted

 

88,757

 

 

 

88,320

 

 

 

88,666

 

 

 

87,847

 

 

YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except per share amounts)

 

 

January 1,
2022

 

January 2,
2021

ASSETS

 

 

 

Current assets

 

 

 

Cash

$

312,189

 

$

253,283

 

Accounts receivable, net

 

109,530

 

 

65,417

 

Inventory

 

318,864

 

 

140,111

 

Prepaid expenses and other current assets

 

29,584

 

 

17,686

 

Total current assets

 

770,167

 

 

476,497

 

Property and equipment, net

 

119,044

 

 

78,075

 

Operating lease right-of-use assets

 

54,971

 

 

34,090

 

Goodwill

 

54,293

 

 

54,293

 

Intangible assets, net

 

95,314

 

 

92,078

 

Other assets

 

2,575

 

 

2,034

 

Total assets

$

1,096,364

 

$

737,067

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable

$

191,319

 

$

123,621

 

Accrued expenses and other current liabilities

 

132,309

 

 

89,068

 

Taxes payable

 

14,514

 

 

18,316

 

Accrued payroll and related costs

 

30,844

 

 

25,810

 

Operating lease liabilities

 

10,167

 

 

8,247

 

Current maturities of long-term debt

 

24,560

 

 

22,697

 

Total current liabilities

 

403,713

 

 

287,759

 

Long-term debt, net of current portion

 

95,741

 

 

111,017

 

Operating lease liabilities, non-current

 

55,940

 

 

36,546

 

Other liabilities

 

23,147

 

 

13,327

 

Total liabilities

 

578,541

 

 

448,649

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

Common stock, par value $0.01; 600,000 shares authorized; 87,727, and 87,128 shares outstanding at

January 1, 2022, and January 2, 2021, respectively

 

877

 

 

871

 

Preferred stock, par value $0.01; 30,000 shares authorized; no shares issued or outstanding

 

 

 

 

Additional paid-in capital

 

337,735

 

 

321,678

 

Retained earnings (accumulated deficit)

 

178,858

 

 

(33,744

)

Accumulated other comprehensive income (loss)

 

353

 

 

(387

)

Total stockholders’ equity

 

517,823

 

 

288,418

 

Total liabilities and stockholders’ equity

$

1,096,364

 

$

737,067

 

 

YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands, except per share amounts)

 

 

Twelve Months Ended

 

January 1,
2022

 

January 2,
2021

Cash Flows from Operating Activities:

 

 

 

Net income

$

212,602

 

 

$

155,801

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

Depreciation and amortization

 

32,070

 

 

 

30,535

 

Amortization of deferred financing fees

 

679

 

 

 

935

 

Stock-based compensation

 

15,474

 

 

 

9,009

 

Deferred income taxes

 

5,147

 

 

 

(3,827

)

Impairment of long-lived assets

 

2,473

 

 

 

1,051

 

Loss on prepayment of debt

 

 

 

 

1,064

 

Other

 

1,022

 

 

 

(74

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(44,681

)

 

 

16,353

 

Inventory

 

(179,803

)

 

 

46,052

 

Other current assets

 

(10,587

)

 

 

1,982

 

Accounts payable and accrued expenses

 

112,773

 

 

 

89,125

 

Taxes payable

 

(3,781

)

 

 

14,943

 

Other

 

3,132

 

 

 

3,478

 

Net cash provided by operating activities

 

146,520

 

 

 

366,427

 

Cash Flows from Investing Activities:

 

 

 

Purchases of property and equipment

 

(56,121

)

 

 

(15,566

)

Additions of intangibles, net

 

(9,635

)

 

 

(7,378

)

Net cash used in investing activities

 

(65,756

)

 

 

(22,944

)

Cash Flows from Financing Activities:

 

 

 

Repayments of long-term debt

 

(22,500

)

 

 

(165,000

)

Taxes paid in connection with employee stock transactions

 

(3,506

)

 

 

(1,028

)

Proceeds from employee stock transactions

 

4,095

 

 

 

3,022

 

Finance lease principal payment

 

(1,108

)

 

 

(185

)

Borrowings under revolving line of credit

 

 

 

 

50,000

 

Repayments under revolving line of credit

 

 

 

 

(50,000

)

Net cash used in financing activities

 

(23,019

)

 

 

(163,191

)

Effect of exchange rate changes on cash

 

1,161

 

 

 

476

 

Net increase in cash

 

58,906

 

 

 

180,768

 

Cash, beginning of period

 

253,283

 

 

 

72,515

 

Cash, end of period

$

312,189

 

 

$

253,283

 

 

YETI HOLDINGS, INC.

SELECTED FINANCIAL DATA

Reconciliation of GAAP to Non-GAAP Financial Information

(Unaudited) (In thousands except per share amounts)

 

 

Three Months Ended

 

Twelve Months Ended

 

January 1,
2022

 

January 2,
2021

 

January 1,
2022

 

January 2,
2021

Operating income

$

93,735

 

 

$

81,426

 

 

$

274,938

 

 

$

214,233

 

Adjustments:

 

 

 

 

 

 

 

Non-cash stock-based compensation expense(1)

 

4,135

 

 

 

2,694

 

 

 

15,474

 

 

 

9,009

 

Long-lived asset impairment(1)

 

142

 

 

 

419

 

 

 

2,473

 

 

 

1,051

 

Business optimization expense(1)(2)

 

1,768

 

 

 

 

 

 

2,247

 

 

 

 

Adjusted operating income

$

99,780

 

 

$

84,539

 

 

$

295,132

 

 

$

224,293

 

 

 

 

 

 

 

 

 

Net income

$

72,881

 

 

$

62,394

 

 

$

212,602

 

 

$

155,801

 

Adjustments:

 

 

 

 

 

 

 

Non-cash stock-based compensation expense(1)

 

4,135

 

 

 

2,694

 

 

 

15,474

 

 

 

9,009

 

Long-lived asset impairment(1)

 

142

 

 

 

419

 

 

 

2,473

 

 

 

1,051

 

Loss on prepayment of debt(3)

 

 

 

 

646

 

 

 

 

 

 

1,064

 

Business optimization expense(1)(2)

 

1,768

 

 

 

 

 

 

2,247

 

 

 

 

Tax impact of adjusting items(4)

 

(1,480

)

 

 

(921

)

 

 

(4,947

)

 

 

(2,725

)

Adjusted net income

$

77,446

 

 

$

65,232

 

 

$

227,849

 

 

$

164,200

 

 

 

 

 

 

 

 

 

Net sales

$

443,125

 

 

$

375,768

 

 

$

1,410,989

 

 

$

1,091,721

 

Operating income as a % of net sales

 

21.2

%

 

 

21.7

%

 

 

19.5

%

 

 

19.6

%

Adjusted operating income as a % of net sales

 

22.5

%

 

 

22.5

%

 

 

20.9

%

 

 

20.5

%

Net income as a % of net sales

 

16.4

%

 

 

16.6

%

 

 

15.1

%

 

 

14.3

%

Adjusted net income as a % of net sales

 

17.5

%

 

 

17.4

%

 

 

16.1

%

 

 

15.0

%

 

 

 

 

 

 

 

 

Net income per diluted share

$

0.82

 

 

$

0.71

 

 

$

2.40

 

 

$

1.77

 

Adjusted net income per diluted share

$

0.87

 

 

$

0.74

 

 

$

2.57

 

 

$

1.87

 

Weighted average common shares outstanding - diluted

 

88,757

 

 

 

88,320

 

 

 

88,666

 

 

 

87,847

 

(1)These costs are reported in SG&A expenses.

(2) Represents start-up costs, transition and integration charges associated with our new distribution facility in Memphis, Tennessee, and costs to exit our distribution facility in Dallas, Texas.

(3) Represents the accelerated amortization of deferred financing fees resulting from the voluntary prepayments of our term loan.

(4) Represents the tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for both the three months ended January 1, 2022 and January 2, 2021, respectively. For both the twelve months ended January 1, 2022 and January 2, 2021, the tax rate used to calculate the tax impact of adjustments was 24.5%.

Fiscal 2022 OUTLOOK

Reconciliation of GAAP to Non-GAAP Financial Information

(Unaudited)

(In thousands except per share amounts)

 

 

Twelve Months

Ended

 

Fiscal 2022 Outlook

 

January 1, 2022

 

Low

 

High

Operating income

$

274,938

 

 

$

310,032

 

 

$

315,676

 

Adjustments:

 

 

 

 

 

Non-cash stock-based compensation expense(1)

 

15,474

 

 

 

22,962

 

 

 

22,962

 

Long-lived asset impairment(1)

 

2,473

 

 

 

 

 

 

 

Business optimization expense(1)(2)

 

2,247

 

 

 

 

 

 

 

Adjusted operating income

$

295,132

 

 

$

332,994

 

 

$

338,638

 

 

 

 

 

 

 

Net income

$

212,602

 

 

$

233,045

 

 

$

237,334

 

Adjustments:

 

 

 

 

 

Non-cash stock-based compensation expense(1)

 

15,474

 

 

 

22,962

 

 

 

22,962

 

Long-lived asset impairment(1)

 

2,473

 

 

 

 

 

 

 

Business optimization expense(1)(2)

 

2,247

 

 

 

 

 

 

 

Tax impact of adjusting items(3)

 

(4,947

)

 

 

(5,626

)

 

 

(5,626

)

Adjusted net income

$

227,849

 

 

$

250,381

 

 

$

254,670

 

 

 

 

 

 

 

Net sales

$

1,410,989

 

 

$

1,664,968

 

 

$

1,693,187

 

Operating income as a % of net sales

 

19.5

%

 

 

18.6

%

 

 

18.6

%

Adjusted operating income as a % of net sales

 

20.9

%

 

 

20.0

%

 

 

20.0

%

Net income as a % of net sales

 

15.1

%

 

 

14.0

%

 

 

14.0

%

Adjusted net income as a % of net sales

 

16.1

%

 

 

15.0

%

 

 

15.0

%

 

 

 

 

 

 

Net income per diluted share

$

2.40

 

 

$

2.62

 

 

$

2.67

 

Adjusted net income per diluted share

$

2.57

 

 

$

2.82

 

 

$

2.86

 

Weighted average common shares outstanding - diluted

 

88,666

 

 

 

88,923

 

 

 

88,923

 

 

(1) These costs are reported in SG&A expenses.

(2) Represents start-up costs, transition and integration charges associated with our new distribution facility in Memphis, Tennessee, and costs to exit our distribution facility in Dallas, Texas.

(3) Represents tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for both Fiscal 2021 and Fiscal 2022.

 

Investor Relations Contact:
Tom Shaw, 512-271-6332
Investor.relations@yeti.com

Media Contact:
YETI Holdings, Inc. Media Hotline
Media@yeti.com

Source: YETI Holdings, Inc.