Net Sales Increased 15%
Gross Margin Expanded 700 Basis
Points
Operating Income Increased 171%
Adjusted Operating Income Increased
89%
Updates 2019 Outlook
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,
512-271-6332Investor.relations@yeti.com
Media Contact:Alecia Pulman,
203-682-8224alecia.pulman@icrinc.com
Brittany Fraser, 646-277-1231brittany.fraser@icrinc.com
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