YETI Reports Fourth Quarter and Fiscal Year 2023 Results
Announces Two Category Expansion Acquisitions & a
Provides Fiscal Year 2024 Outlook
YETI reports its financial performance in accordance with accounting principles generally accepted in
Fourth Quarter 2023 Highlights
- Fourth quarter net sales increased 16%; Adjusted net sales increased 6%
- Fourth quarter net sales were highlighted by a 12% increase in Drinkware net sales and a 44% increase in International net sales; International adjusted net sales increased 39%
-
Fourth quarter EPS of
$0.90 compared to loss per share of$0.32 in the prior year quarter; Adjusted EPS of$0.90 , growth of 15%
Fiscal Year 2023 Highlights
- Full year net sales increased 4%; Adjusted net sales increased 3%
-
Full year EPS increased 88% to
$1.94 ; Adjusted EPS decreased 5% to$2.25 -
Cash increased 87% to
$439 million compared to Fiscal 2022
Fourth Quarter 2023 Results
Sales increased 16% to
Adjusted sales, which exclude the impacts of the recall reserves in both the current and prior year quarters, increased 6% to
Sales and adjusted sales for the fourth quarter of 2023 include
-
Direct-to-consumer (“DTC”) channel sales increased 11% to
$344.9 million , compared to$309.5 million in the prior year quarter, due to growth in Drinkware. Excluding the impacts related to the recall reserves, DTC channel adjusted sales increased 9% to$344.1 million . -
Wholesale channel sales increased 26% to
$174.9 million , compared to$138.5 million in the same period last year. Excluding the impacts of the recall reserves, wholesale channel adjusted sales increased 1% to$172.9 million . -
Drinkware sales increased 12% to
$346.0 million , compared to$308.2 million in the prior year quarter, driven by the continued expansion and innovation of our Drinkware product offerings, including Rambler straw lid mugs, Rambler and Yonder bottles, new specialty coffee cups and tabletop solutions, as well as new seasonal colorways. -
Coolers & Equipment sales increased 26% to
$165.0 million , compared to$130.5 million in the same period last year. Excluding the impacts of the recall reserves, Coolers & Equipment adjusted sales decreased 4% to$162.2 million . This decrease was primarily due to a decline in hard coolers, which were impacted by more cautious and inconsistent spending for higher-priced ticket items. These impacts were partially offset by strong performance in our new Hopper M12 Soft Backpack Cooler and M15 Soft Cooler, cargo, and bags.
Gross profit increased 89% to
Adjusted gross profit, which excludes the impacts of the recall reserves in both the current and prior year quarters, increased
Selling, general, and administrative (“SG&A”) expenses increased 3% to
Adjusted SG&A expenses, which exclude the impacts related to the recalls and certain other items in both the current and prior year quarters, increased 19% to
Operating income was
Adjusted operating income, which excludes the impacts related to the recalls and certain other items in both the current and prior year quarters, increased 15% to
Net income, which includes the impacts from the recall reserves, was
Adjusted net income increased 16% to
Full Year 2023 Results
Sales increased 4% to
Adjusted sales, which exclude the unfavorable impacts of the recall reserves in both the current and prior year quarters, increased 3% to
Our 2023 financial results were materially adversely impacted by the stop sale of the soft coolers included in the recalls initiated during the first quarter of 2023. In addition, sales and adjusted net sales for 2023 include
-
DTC channel sales increased 9% to
$997.7 million , compared to$917.7 million in the prior year period, due to growth in Drinkware. Excluding the impacts related to the recall reserves, DTC channel adjusted sales increased 9% to$1,005.1 million due to growth in both Drinkware and Coolers & Equipment. -
Wholesale channel sales decreased 2% to
$661.0 million , compared to$677.5 million in the same period last year. Excluding the impacts related to the recall reserves, wholesale channel adjusted sales decreased 5% to$675.4 million due to a decline in Coolers & Equipment, partially offset by growth in Drinkware. -
Drinkware sales increased 8% to
$1,023.0 million , compared to$947.2 million in the prior year period, reflecting strong demand for the continued expansion and innovation of our Drinkware product offerings, including Rambler straw lid mugs, Rambler and Yonder bottles, specialty coffee cups and tabletop solutions, as well as new seasonal colorways. -
Coolers & Equipment sales decreased 2% to
$597.5 million , compared to$612.5 million in the same period last year. Excluding the impacts of the recall reserves, Coolers & Equipment adjusted sales decreased 5% to$619.2 million . This decrease was primarily due to the stop sale of the products affected by the recalls, partially offset by the introduction of our new Hopper M12 Soft Backpack Cooler and M15 Soft Cooler, and strong performance in our Hopper Flip soft cooler line, cargo and bags.
Gross profit increased 24% to
Adjusted gross profit, which excludes the impacts related to the recall reserves in both the current and prior year quarters, increased
SG&A expenses increased 13% to
Adjusted SG&A expenses, which exclude the impacts related to the recall reserves and certain other items in both the current and prior year quarters, increased 18% to
Operating income increased 78% to
Adjusted operating income, which excludes the impacts related to the recalls and certain other items in both the current and prior year quarters, decreased 4% to
Net income, which includes the impacts from the recall reserves, increased 89% to
Adjusted net income decreased 4% to
Balance Sheet and Other Highlights
Cash increased
Inventory decreased 9% to
Total debt,excluding finance leases and unamortized deferred financing fees, was
Fiscal 2024 Outlook
Also, as we look to leverage the strength of our balance sheet while maintaining flexibility, our Board of Directors has authorized the repurchase of up to
Given the uncertainties of the current environment, our outlook for 2024 balances a cautious approach with the ongoing opportunities that we see to drive growth through brand, product, and geographic expansion. We expect to see positive reaction to innovation across our entire product portfolio in 2024. Sales are projected to grow across all of our categories, channels, and geographies. We expect both adjusted gross margin and adjusted operating margin expansion, as well as strong earnings per share growth, even as we continue to strategically invest in our teams and our business across the globe. We also expect to remain in a very strong balance sheet position, which gives us flexibility going forward to continue to support future growth and drive shareholder value.”
For Fiscal 2024, YETI expects:
- Adjusted sales to increase between 7% and 9%;
- Adjusted operating income as a percentage of adjusted sales of approximately 16.0%;
- An effective tax rate of approximately 25.3% (compared to 24.8% in the prior year period);
-
Adjusted net income per diluted share between
$2.45 and$2.50 , reflecting a 9% to 11% increase; - Diluted weighted average shares outstanding of approximately 87.4 million; and
-
Capital expenditures of approximately
$60 million primarily to support investments in technology and new product innovation.
2024 Acquisitions
During the first quarter of 2024, we completed the acquisitions of
2024 Share Repurchase Program
YETI announced today that its Board of Directors has approved a share repurchase program of up to
Repurchases of shares of common stock may be made through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital management needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of its common stock, and such repurchases, if any, may be suspended or discontinued at any time. YETI expects to fund repurchase from YETI’s existing cash position or future cash flow generated from operations.
Product Recall Updates
New and Expanded Hopper M Series Soft Cooler Line
In the fourth quarter of 2023, we introduced our redesigned and improved Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case, and also launched two new sizes with the Hopper M15 Soft Cooler and the Hopper M12 Soft Backpack Cooler. We believe the improved design of the these products adequately addresses the potential safety concerns caused by the magnet-lined closures of the previous-generation products, which were affected by the product recalls.
Product Recall Reserve
In
In
During the fourth quarter of 2023, we experienced lower than anticipated consumer recall participation rates and a further shift to gift card elections in lieu of product replacement remedies. Based on such experience and trends, we again reevaluated our assumptions, which decreased the estimated recall expense reserve by
The reserve for the estimated product recall expenses was
We recorded the following impacts as a result of the recall reserve adjustments and the initial recognition of the recall reserve for the periods presented below. These impacts are excluded from our non-GAAP results:
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
December
|
|
|
|
December
|
||||||||
Increase (decrease) to net sales(1) |
$ |
2,824 |
|
$ |
(38,415 |
) |
|
$ |
(21,700 |
) |
|
$ |
(38,415 |
) |
|
Decrease (increase) to cost of goods sold(2) |
|
1,275 |
|
|
(58,583 |
) |
|
|
8,423 |
|
|
|
(58,583 |
) |
|
Increase (decrease) to gross profit |
|
4,099 |
|
|
(96,998 |
) |
|
|
(13,277 |
) |
|
|
(96,998 |
) |
|
Decrease (increase) to SG&A expenses(3) |
|
833 |
|
|
(31,910 |
) |
|
|
11,382 |
|
|
|
(31,910 |
) |
|
Increase (decrease) to income before income taxes |
$ |
4,932 |
|
$ |
(128,908 |
) |
|
$ |
(1,895 |
) |
|
$ |
(128,908 |
) |
_________________________
(1) |
Net sales - For the three months ended |
|
(2) |
Cost of goods sold - For the three and twelve months ended |
|
(3) |
SG&A expenses - For the three months and twelve months ended |
In addition, our 2023 financial results were materially adversely impacted by the stop sale of the affected products initiated during the first quarter of 2023.
Conference Call Details
A conference call to discuss the fourth quarter of 2023 financial results is scheduled for today,
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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 net sales, adjusted gross profit, adjusted SG&A expenses, adjusted operating income, adjusted net income, adjusted net income per diluted share as well as adjusted gross profit and adjusted SG&A expenses, adjusted operating income and adjusted net income as a percentage of adjusted 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 non-GAAP financial measures provide meaningful supplemental information regarding the underlying operating performance of our business and are appropriate to enhance an overall understanding of our financial performance. 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.
YETI does not provide a reconciliation of forward-looking non-GAAP to GAAP financial measures because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliation, including in particular the impact of the voluntary recalls and realized and unrealized foreign currency gains and losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide a forward-looking GAAP financial measures at this time. The amount of these deductions and additions may be material and, therefore, could result in forward-looking GAAP financial measures being materially different or less than forward-looking non-GAAP financial measures. See “Forward-looking statements” 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 made relating to our future expectations relating to our acquisitions of Mystery Ranch and
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 global business and economic environment, including ongoing geopolitical conflicts. Solely for convenience, certain trademark and service marks referred to in this press release appear without the ® or ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and service marks.
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net sales |
$ |
519,793 |
|
|
$ |
447,996 |
|
|
$ |
1,658,713 |
|
|
$ |
1,595,222 |
|
|
Cost of goods sold |
|
204,566 |
|
|
|
280,961 |
|
|
|
715,527 |
|
|
|
831,821 |
|
|
Gross profit |
|
315,227 |
|
|
|
167,035 |
|
|
|
943,186 |
|
|
|
763,401 |
|
|
Selling, general, and administrative expenses |
|
217,075 |
|
|
|
210,777 |
|
|
|
717,728 |
|
|
|
637,040 |
|
|
Operating income (loss) |
|
98,152 |
|
|
|
(43,742 |
) |
|
|
225,458 |
|
|
|
126,361 |
|
|
Interest income (expense), net |
|
668 |
|
|
|
(1,245 |
) |
|
|
(942 |
) |
|
|
(4,466 |
) |
|
Other income (expense), net |
|
4,212 |
|
|
|
6,484 |
|
|
|
1,430 |
|
|
|
(5,718 |
) |
|
Income (loss) before income taxes |
|
103,032 |
|
|
|
(38,503 |
) |
|
|
225,946 |
|
|
|
116,177 |
|
|
Income tax (expense) benefit |
|
(24,439 |
) |
|
|
10,765 |
|
|
|
(56,061 |
) |
|
|
(26,484 |
) |
|
Net income (loss) |
$ |
78,593 |
|
|
$ |
(27,738 |
) |
|
$ |
169,885 |
|
|
$ |
89,693 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.90 |
|
|
$ |
(0.32 |
) |
|
$ |
1.96 |
|
|
$ |
1.04 |
|
|
Diluted |
$ |
0.90 |
|
|
$ |
(0.32 |
) |
|
$ |
1.94 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|||||||||
Basic |
|
86,880 |
|
|
|
86,343 |
|
|
|
86,717 |
|
|
|
86,521 |
|
|
Diluted |
|
87,743 |
|
|
|
86,343 |
|
|
|
87,403 |
|
|
|
87,195 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(In thousands, except per share amounts) |
||||||||
|
|
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash |
$ |
438,960 |
|
|
$ |
234,741 |
|
|
Accounts receivable, net |
|
95,774 |
|
|
|
79,446 |
|
|
Inventory |
|
337,208 |
|
|
|
371,412 |
|
|
Prepaid expenses and other current assets |
|
42,463 |
|
|
|
33,321 |
|
|
Total current assets |
|
914,405 |
|
|
|
718,920 |
|
|
Property and equipment, net |
|
130,714 |
|
|
|
124,587 |
|
|
Operating lease right-of-use assets |
|
77,556 |
|
|
|
55,406 |
|
|
|
|
54,293 |
|
|
|
54,293 |
|
|
Intangible assets, net |
|
117,629 |
|
|
|
99,429 |
|
|
Other assets |
|
2,595 |
|
|
|
24,130 |
|
|
Total assets |
$ |
1,297,192 |
|
|
$ |
1,076,765 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
190,392 |
|
|
$ |
140,818 |
|
|
Accrued expenses and other current liabilities |
|
130,026 |
|
|
|
211,399 |
|
|
Taxes payable |
|
33,489 |
|
|
|
15,289 |
|
|
Accrued payroll and related costs |
|
23,141 |
|
|
|
4,847 |
|
|
Operating lease liabilities |
|
14,726 |
|
|
|
12,076 |
|
|
Current maturities of long-term debt |
|
6,579 |
|
|
|
24,611 |
|
|
Total current liabilities |
|
398,353 |
|
|
|
409,040 |
|
|
Long-term debt, net of current portion |
|
78,645 |
|
|
|
71,741 |
|
|
Operating lease liabilities, non-current |
|
76,163 |
|
|
|
55,649 |
|
|
Other liabilities |
|
20,421 |
|
|
|
13,858 |
|
|
Total liabilities |
|
573,582 |
|
|
|
550,288 |
|
|
|
|
|
|
|||||
Stockholders’ Equity |
|
|
|
|||||
Common stock |
|
886 |
|
|
|
881 |
|
|
|
|
(100,025 |
) |
|
|
(100,025 |
) |
|
Additional paid-in capital |
|
386,377 |
|
|
|
357,490 |
|
|
Retained earnings |
|
438,436 |
|
|
|
268,551 |
|
|
Accumulated other comprehensive loss |
|
(2,064 |
) |
|
|
(420 |
) |
|
Total stockholders’ equity |
|
723,610 |
|
|
|
526,477 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,297,192 |
|
|
$ |
1,076,765 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In thousands, except per share amounts) |
||||||||
|
Twelve Months Ended |
|||||||
|
|
|
|
|||||
Cash Flows from Operating Activities: |
|
|
|
|||||
Net income |
$ |
169,885 |
|
|
$ |
89,693 |
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
46,434 |
|
|
|
39,847 |
|
|
Amortization of deferred financing fees |
|
604 |
|
|
|
601 |
|
|
Stock-based compensation |
|
29,800 |
|
|
|
17,799 |
|
|
Deferred income taxes |
|
25,561 |
|
|
|
(403 |
) |
|
Impairment of long-lived assets |
|
2,927 |
|
|
|
1,229 |
|
|
Loss on modification and extinguishment of debt |
|
330 |
|
|
|
— |
|
|
Product recalls |
|
1,895 |
|
|
|
97,176 |
|
|
Other |
|
(6,163 |
) |
|
|
2,039 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
(15,683 |
) |
|
|
30,448 |
|
|
Inventory |
|
33,675 |
|
|
|
(91,624 |
) |
|
Other current assets |
|
(7,933 |
) |
|
|
(2,187 |
) |
|
Accounts payable and accrued expenses |
|
(15,144 |
) |
|
|
(86,242 |
) |
|
Taxes payable |
|
18,156 |
|
|
|
439 |
|
|
Other |
|
1,598 |
|
|
|
2,079 |
|
|
Net cash provided by operating activities |
|
285,942 |
|
|
|
100,894 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|||||
Purchases of property and equipment |
|
(50,672 |
) |
|
|
(45,929 |
) |
|
Additions of intangibles, net |
|
(22,152 |
) |
|
|
(10,981 |
) |
|
Net cash used in investing activities |
|
(72,824 |
) |
|
|
(56,910 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|||||
Repayments of long-term debt |
|
(7,734 |
) |
|
|
(22,500 |
) |
|
Payments of deferred financing fees |
|
(2,824 |
) |
|
|
— |
|
|
Taxes paid in connection with employee stock transactions |
|
(2,481 |
) |
|
|
(1,861 |
) |
|
Proceeds from employee stock transactions |
|
1,573 |
|
|
|
3,821 |
|
|
Finance lease principal payment |
|
(2,130 |
) |
|
|
(2,063 |
) |
|
Repurchase of common stock |
|
— |
|
|
|
(100,025 |
) |
|
Net cash used in financing activities |
|
(13,596 |
) |
|
|
(122,628 |
) |
|
Effect of exchange rate changes on cash |
|
4,697 |
|
|
|
1,196 |
|
|
Net increase (decrease) in cash |
|
204,219 |
|
|
|
(77,448 |
) |
|
Cash, beginning of period |
|
234,741 |
|
|
|
312,189 |
|
|
Cash, end of period |
$ |
438,960 |
|
|
$ |
234,741 |
|
|
||||||||||||||||
Supplemental Financial Information |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
||||||||||||||||
(Unaudited) (In thousands except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net sales |
$ |
519,793 |
|
|
$ |
447,996 |
|
|
$ |
1,658,713 |
|
|
$ |
1,595,222 |
|
|
Product recall(1) |
|
(2,824 |
) |
|
|
38,415 |
|
|
|
21,700 |
|
|
|
38,415 |
|
|
Adjusted net sales |
$ |
516,969 |
|
|
$ |
486,411 |
|
|
$ |
1,680,413 |
|
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ |
315,227 |
|
|
$ |
167,035 |
|
|
$ |
943,186 |
|
|
$ |
763,401 |
|
|
Product recall(1) |
|
(4,099 |
) |
|
|
96,998 |
|
|
|
13,277 |
|
|
|
96,998 |
|
|
Adjusted gross profit |
$ |
311,128 |
|
|
$ |
264,033 |
|
|
$ |
956,463 |
|
|
$ |
860,399 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general, and administrative expenses |
$ |
217,075 |
|
|
$ |
210,777 |
|
|
$ |
717,728 |
|
|
$ |
637,040 |
|
|
Non-cash stock-based compensation expense |
|
(7,882 |
) |
|
|
(2,916 |
) |
|
|
(29,800 |
) |
|
|
(17,799 |
) |
|
Long-lived asset impairment |
|
(964 |
) |
|
|
(1,048 |
) |
|
|
(2,927 |
) |
|
|
(1,229 |
) |
|
Product recall(1) |
|
833 |
|
|
|
(31,910 |
) |
|
|
11,382 |
|
|
|
(31,910 |
) |
|
Organizational realignment costs(2) |
|
— |
|
|
|
— |
|
|
|
(1,582 |
) |
|
|
— |
|
|
Business optimization expense(3) |
|
— |
|
|
|
— |
|
|
|
(582 |
) |
|
|
— |
|
|
Transaction costs(4) |
|
(541 |
) |
|
|
— |
|
|
|
(541 |
) |
|
|
— |
|
|
Adjusted selling, general, and administrative expenses |
$ |
208,521 |
|
|
$ |
174,903 |
|
|
$ |
693,678 |
|
|
$ |
586,102 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
|
60.6 |
% |
|
|
37.3 |
% |
|
|
56.9 |
% |
|
|
47.9 |
% |
|
Adjusted gross margin |
|
60.2 |
% |
|
|
54.3 |
% |
|
|
56.9 |
% |
|
|
52.7 |
% |
|
SG&A expenses as a % of net sales |
|
41.8 |
% |
|
|
47.0 |
% |
|
|
43.3 |
% |
|
|
39.9 |
% |
|
Adjusted SG&A expenses as a % of adjusted net sales |
|
40.3 |
% |
|
|
36.0 |
% |
|
|
41.3 |
% |
|
|
35.9 |
% |
_________________________
(1) |
Represents adjustments and charges associated with recalls. For the three months ended |
|
(2) |
Represents employee severance costs in connection with strategic organizational realignments. |
|
(3) |
Represents start-up costs, transition and integration charges associated with our new distribution facilities in |
|
(4) |
Represents third-party costs related to the announced acquisition of Mystery Ranch, including professional, legal, and other transaction costs. |
|
||||||||||||||||
Supplemental Financial Information |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
||||||||||||||||
(Unaudited) (In thousands except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
$ |
98,152 |
|
|
$ |
(43,742 |
) |
|
$ |
225,458 |
|
|
$ |
126,361 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Non-cash stock-based compensation expense(1) |
|
7,882 |
|
|
|
2,916 |
|
|
|
29,800 |
|
|
|
17,799 |
|
|
Long-lived asset impairment(1) |
|
964 |
|
|
|
1,048 |
|
|
|
2,927 |
|
|
|
1,229 |
|
|
Product recalls(2) |
|
(4,932 |
) |
|
|
128,908 |
|
|
|
1,895 |
|
|
|
128,908 |
|
|
Organizational realignment costs(1)(3) |
|
— |
|
|
|
— |
|
|
|
1,582 |
|
|
|
— |
|
|
Business optimization expense(1)(4) |
|
— |
|
|
|
— |
|
|
|
582 |
|
|
|
— |
|
|
Transaction costs(1)(5) |
|
541 |
|
|
|
— |
|
|
|
541 |
|
|
|
— |
|
|
Adjusted operating income |
$ |
102,607 |
|
|
$ |
89,130 |
|
|
$ |
262,785 |
|
|
$ |
274,297 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
78,593 |
|
|
$ |
(27,738 |
) |
|
$ |
169,885 |
|
|
$ |
89,693 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Non-cash stock-based compensation expense(1) |
|
7,882 |
|
|
|
2,916 |
|
|
|
29,800 |
|
|
|
17,799 |
|
|
Long-lived asset impairment(1) |
|
964 |
|
|
|
1,048 |
|
|
|
2,927 |
|
|
|
1,229 |
|
|
Product recalls(2) |
|
(4,932 |
) |
|
|
128,908 |
|
|
|
1,895 |
|
|
|
128,908 |
|
|
Organizational realignment costs(1)(3) |
|
— |
|
|
|
— |
|
|
|
1,582 |
|
|
|
— |
|
|
Business optimization expense(1)(4) |
|
— |
|
|
|
— |
|
|
|
582 |
|
|
|
— |
|
|
Transaction costs(1)(5) |
|
541 |
|
|
|
— |
|
|
|
541 |
|
|
|
— |
|
|
Other income (expense), net(6) |
|
(4,212 |
) |
|
|
(6,484 |
) |
|
|
(1,430 |
) |
|
|
5,718 |
|
|
Tax impact of adjusting items(7) |
|
(60 |
) |
|
|
(30,965 |
) |
|
|
(8,795 |
) |
|
|
(37,645 |
) |
|
Adjusted net income |
$ |
78,776 |
|
|
$ |
67,685 |
|
|
$ |
196,987 |
|
|
$ |
205,702 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net sales |
$ |
519,793 |
|
|
$ |
447,996 |
|
|
$ |
1,658,713 |
|
|
$ |
1,595,222 |
|
|
Adjusted net sales |
$ |
516,969 |
|
|
$ |
486,411 |
|
|
$ |
1,680,413 |
|
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) as a % of net sales |
|
18.9 |
% |
|
|
(9.8 |
) % |
|
|
13.6 |
% |
|
|
7.9 |
% |
|
Adjusted operating income as a % of adjusted net sales |
|
19.8 |
% |
|
|
18.3 |
% |
|
|
15.6 |
% |
|
|
16.8 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) as a % of net sales |
|
15.1 |
% |
|
|
(6.2 |
) % |
|
|
10.2 |
% |
|
|
5.6 |
% |
|
Adjusted net income as a % of adjusted net sales |
|
15.2 |
% |
|
|
13.9 |
% |
|
|
11.7 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per diluted share |
$ |
0.90 |
|
|
$ |
(0.32 |
) |
|
$ |
1.94 |
|
|
$ |
1.03 |
|
|
Adjusted net income per diluted share |
$ |
0.90 |
|
|
$ |
0.78 |
|
|
$ |
2.25 |
|
|
$ |
2.36 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding used to compute adjusted net income per diluted share |
|
87,743 |
|
|
|
86,867 |
|
|
|
87,403 |
|
|
|
87,195 |
|
_________________________
(1) |
These costs are reported in SG&A expenses. |
|
(2) |
Represents adjustments and charges associated with recalls. For the three months ended |
|
(3) |
Represents employee severance costs in connection with strategic organizational realignments. |
|
(4) |
Represents start-up costs, transition and integration charges associated with our new distribution facilities in |
|
(5) |
Represents third-party costs related to the announced acquisition of Mystery Ranch, including professional, legal, and other transaction costs. |
|
(6) |
Other income (expense), net substantially consists of realized and unrealized foreign currency gains and losses on intercompany balances that arise in the ordinary course of business. For the twelve months ended |
|
(7) |
Represents the tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for each of the three and twelve months ended |
|
|||||||||||||||||||
Supplemental Financial Information |
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||||||||
(Unaudited) (In thousands) |
|||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||
|
|
|
Product Recalls(1) |
|
Adjusted Net
|
|
|
|
Product Recalls(1) |
|
Adjusted Net
|
||||||||
Channel |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wholesale |
$ |
174,934 |
|
$ |
(2,029 |
) |
|
$ |
172,905 |
|
$ |
138,503 |
|
$ |
32,242 |
|
$ |
170,745 |
|
Direct-to-consumer |
|
344,859 |
|
|
(795 |
) |
|
|
344,064 |
|
|
309,493 |
|
|
6,173 |
|
|
315,666 |
|
Total |
$ |
519,793 |
|
$ |
(2,824 |
) |
|
$ |
516,969 |
|
$ |
447,996 |
|
$ |
38,415 |
|
$ |
486,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Category |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Coolers & Equipment |
$ |
165,000 |
|
$ |
(2,824 |
) |
|
$ |
162,176 |
|
$ |
130,495 |
|
$ |
38,415 |
|
$ |
168,910 |
|
Drinkware |
|
346,004 |
|
|
— |
|
|
|
346,004 |
|
|
308,166 |
|
|
— |
|
|
308,166 |
|
Other |
|
8,789 |
|
|
— |
|
|
|
8,789 |
|
|
9,335 |
|
|
— |
|
|
9,335 |
|
Total |
$ |
519,793 |
|
$ |
(2,824 |
) |
|
$ |
516,969 |
|
$ |
447,996 |
|
$ |
38,415 |
|
$ |
486,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
434,356 |
|
$ |
(3,090 |
) |
|
$ |
431,266 |
|
$ |
388,788 |
|
$ |
36,066 |
|
$ |
424,854 |
|
International |
$ |
85,437 |
|
$ |
266 |
|
|
$ |
85,703 |
|
$ |
59,208 |
|
$ |
2,349 |
|
$ |
61,557 |
|
Total |
$ |
519,793 |
|
$ |
(2,824 |
) |
|
$ |
516,969 |
|
$ |
447,996 |
|
$ |
38,415 |
|
$ |
486,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
|
Product Recalls(1) |
|
Adjusted Net
|
|
|
|
Product Recalls(1) |
|
Adjusted Net
|
||||||||
Channel |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wholesale |
$ |
661,000 |
|
$ |
14,363 |
|
|
$ |
675,363 |
|
$ |
677,517 |
|
$ |
32,242 |
|
$ |
709,759 |
|
Direct-to-consumer |
|
997,713 |
|
|
7,337 |
|
|
|
1,005,050 |
|
|
917,705 |
|
|
6,173 |
|
|
923,878 |
|
Total |
$ |
1,658,713 |
|
$ |
21,700 |
|
|
$ |
1,680,413 |
|
$ |
1,595,222 |
|
$ |
38,415 |
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Category |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Coolers & Equipment |
$ |
597,511 |
|
$ |
21,700 |
|
|
$ |
619,211 |
|
$ |
612,525 |
|
$ |
38,415 |
|
$ |
650,940 |
|
Drinkware |
|
1,022,982 |
|
|
— |
|
|
|
1,022,982 |
|
|
947,221 |
|
|
— |
|
|
947,221 |
|
Other |
|
38,220 |
|
|
— |
|
|
|
38,220 |
|
|
35,476 |
|
|
— |
|
|
35,476 |
|
Total |
$ |
1,658,713 |
|
$ |
21,700 |
|
|
$ |
1,680,413 |
|
$ |
1,595,222 |
|
$ |
38,415 |
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
1,398,925 |
|
$ |
20,830 |
|
|
$ |
1,419,755 |
|
$ |
1,394,026 |
|
$ |
36,066 |
|
$ |
1,430,092 |
|
International |
|
259,788 |
|
|
870 |
|
|
|
260,658 |
|
|
201,196 |
|
|
2,349 |
|
|
203,545 |
|
Total |
$ |
1,658,713 |
|
$ |
21,700 |
|
|
$ |
1,680,413 |
|
$ |
1,595,222 |
|
$ |
38,415 |
|
$ |
1,633,637 |
_________________________
(1) |
Represents adjustments and charges associated with recalls. For the three months ended |
|
||||||||||||
Fiscal 2024 Outlook |
||||||||||||
(Unaudited) (In thousands except per share amounts) |
||||||||||||
|
Fiscal 2023 |
|
Fiscal 2024 Outlook |
|||||||||
|
|
|
Low |
|
High |
|||||||
Adjusted net sales |
$ |
1,680,413 |
|
|
$ |
1,798,042 |
|
|
$ |
1,831,650 |
|
|
|
|
|
|
|
|
|||||||
Adjusted operating income |
$ |
262,785 |
|
|
$ |
287,687 |
|
|
$ |
293,064 |
|
|
Adjusted operating income as a % of adjusted net sales |
|
15.6 |
% |
|
|
16.0 |
% |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|||||||
Adjusted net income |
$ |
196,987 |
|
|
$ |
214,437 |
|
|
$ |
218,452 |
|
|
Adjusted net income as a % of adjusted net sales |
|
11.7 |
% |
|
|
11.9 |
% |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|||||||
Adjusted net income per diluted share |
$ |
2.25 |
|
|
$ |
2.45 |
|
|
$ |
2.50 |
|
|
Weighted average shares outstanding - diluted |
|
87,403 |
|
|
|
87,403 |
|
|
|
87,403 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240215188648/en/
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