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sleep number宣布2024年第三季度业绩
公司还宣布主席、总裁和首席执行官Shelly Ibach将退休
•第三季度报告的净销售额为42700万美元; 季度调整后的EBITDA为2800万美元，符合预期
•第三季度实现毛利率为60.8%，比去年增加340个基点，超出预期，并且是自2021年第三季度以来最高的季度毛利率。
•第三季度营业费用减少了1700万美元，截至目前为止本年度减少了6000万美元（不包括重组成本）
•与去年同期相比，今年截至目前为止的自由现金流增加了5000万美元
•将2024年全年调整后的EBITDA预期更新为11500万至12500万美元的修订区间
明尼阿波利斯 -（2024年10月30日）- Sleep Number Corporation（纳斯达克：SNBR）今天公布了截至2024年9月28日的季度业绩报告。
过去一年来,我们在整个业务中的举措正在推动可持续的运营模式改善，并为我们提高的财务灵活性和耐用性做出贡献。我们的举措推动了广泛的成本效益和毛利率提升至60.8%，导致第三季度调整后的EBITDA为2800万美元,这一结果符合预期，即使面临持续的消费者需求疲软。”雪莉·伊巴赞said Chairman、总裁兼首席执行官。“与此同时,我们继续利用我们的创新优势，为客户提供改变生活的睡眠解决方案，例如我们的新ClimateCool™智能床。”
“在任职期间，我们团队对我们的使命、受人喜爱的品牌和开创性的智能床铺的承诺，都给我带来了启发，这些床铺能提供经过验证的优质睡眠，” Ibach 补充道。“随着我步入养老生活，我们才华横溢的团队和强大的竞争优势，加上我们增强的财务韧性，让我对 Sleep Number 持续的市场领导地位和在行业需求恢复时为所有利益相关者加速盈利增长和价值创造的能力充满信心。”
第三季度概况
•净销售额 $42700万的销售额同比去年下降10％，其中大约有两个百分点的压力来自年度订单积压变化，还有一个百分点的压力来自门店数量较去年减少
•毛利率 60.8%的毛利率较去年同比提高340个基点，这是由于通过价值工程和持续供应商谈判实现了产品成本的年度降低，有利的产品组合，以及在我们的送货上门和物流运营中的效率提升
•营业费用24900万美元（在重组费用之前）较上年同期减少了1700万美元，年初至今的营业费用在重组费用之前减少了6000万美元
•调整后EBITDA2800万美元的利润同比去年增长11%，调整后的EBITDA利润率为6.5%，比去年增加了120个基点
sleep number宣布2024年第三季度业绩-第2页，共12页
现金流量审查
•经营活动产生的现金流量净额 本年前九个月的收入为5100万元，比去年同期增加1900万元，增幅达60%。
•自由现金流年初九个月的自由现金流为3400万美元，比去年同期增加5000万美元
•杠杆率 第三季末的EBITDAR倍数为4.2倍，而该季度的契约最大值为5.0倍。
财务展望
由于寝具行业的持续疲软，该公司已更新其2024年全年调整后的EBITDA预期，调整后的区间为11500万至12500万美元。公司预计2024年全年净销售额将下降约10%，与年初至今的净销售表现一致。公司的展望包括至少提高全年毛利率150个基点。公司预计全年将实现自由现金流1000万至2000万美元，并计划在全年资本支出约2500万美元左右。
CEO退休和董事会以及治理变化
今天公司另行发布了以下内容:
•Ibach将在2025年股东大会（“2025年股东大会”）之前退休，此前将由独立的高管搜索公司进行全面搜索以确定她的继任者。
•2025年年度股东大会上，Ibach将不再寻求连任董事会成员，届时，董事会打算任命Michael J. Harrison为独立董事会主席。
•董事会打算缩小规模，两位任职时间较长的董事将在2026年年度股东大会前后退休
•董事会打算修订公司的管理文件，并请求股东批准在2025年年会上开始解除董事会的分类，并采用多数表决标准，以批准合并和对公司章程的修订
电话会议信息
管理层将在今天下午5点（东部时间4点；中部时间3点）举行定期的电话会议，讨论公司的业绩。要访问网络直播，请访问sleep number网站的投资者关系区域。 https://ir.sleepnumber.com. 网络直播重播将保持大约60天。我们还在sleep number网站的投资者关系区域发布了更新后的投资者演示。
sleep number宣布2024年第三季度业绩 - 第3页，共12页
关于sleep number公司
sleep number是一家健康科技公司。我们的目标是通过提高睡眠质量来改善社会的健康和福祉；迄今为止，我们的创新已经改善了近1600万人的生活。我们的健康科技平台有助于解决睡眠问题，无论是通过我们的Climate360为每位睡眠者提供个性化的温度控制，还是将我们的290亿小时的纵向睡眠数据和专业知识应用于与全球机构的研究。® 智能床或应用我们超过290亿小时的睡眠数据和专业知识与全球机构进行研究。
我们的智能床生态系统通过动态、可调节、轻松的睡眠，以及个性化的数字睡眠和健康见解，实现卓越的参与度；我们数百万的智能睡眠者是忠诚的品牌倡导者。我们有3700名使命驱动团队成员，热情创新，通过我们垂直一体化的业务模式创造价值，包括我们独家的直销模式，几乎覆盖了650家门店和在线渠道。
要了解更多关于改变生活、个性化睡眠的信息，请访问sleep number® 在您附近的商店，我们的 要了解更多关于我们的信息，请访问我们的新闻室。和页面。投资者关系网站。 网站，或 SleepNumber.com
前瞻性声明
本新闻稿中使用的关于未来计划、事件、财务结果或表现的陈述，如公司正在推动可持续的运营模型改进，为增加的财务灵活性和耐久性做出贡献，并继续利用其创新优势为客户提供改变生活的睡眠方案，并为所有利益相关者在需求恢复时实现持续市场领导地位、加速盈利增长和价值创造的陈述；关于公司财务展望的陈述，包括公司预期的2024年调整后息税折旧摊销前利润和未来净销售、需求、毛利率和自由现金流预期；以及关于公司CEO和董事会退休以及治理变革的陈述均为前瞻性陈述，受某些风险和不确定性影响，可能导致公司的结果出现重大差异。最重要的风险和不确定性在公司向证券交易委员会提交的文件中有描述，包括在公司年度报告第10-k表格中的第1A项目及其他定期报告中。前瞻性陈述仅在其发表之日起生效，公司不承诺更新任何前瞻性陈述。
Investor Contact: Dave Schwantes; (763) 551-7498; investorrelations@sleepnumber.com
Media Contact: Julie Elepano; (414) 732-9840; julie.elepano@sleepnumber.com
Sleep Number Announces Third-quarter 2024 Results - Page 4 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited – in thousands, except per share amounts)
| Three Months Ended | |||||||||||||||||||||||
| September 28, 2024 | % of Net Sales | September 30, 2023 | % of Net Sales | ||||||||||||||||||||
| Net sales | $ | 426,617 | 100.0 | % | $ | 472,648 | 100.0 | % | |||||||||||||||
| Cost of sales | 167,089 | 39.2 | % | 201,537 | 42.6 | % | |||||||||||||||||
| Gross profit | 259,528 | 60.8 | % | 271,111 | 57.4 | % | |||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing | 205,480 | 48.2 | % | 221,143 | 46.8 | % | |||||||||||||||||
| General and administrative | 33,070 | 7.8 | % | 31,948 | 6.8 | % | |||||||||||||||||
| Research and development | 10,583 | 2.5 | % | 12,633 | 2.7 | % | |||||||||||||||||
| Restructuring costs | 1,963 | 0.5 | % | — | 0.0 | % | |||||||||||||||||
| Total operating expenses | 251,096 | 58.9 | % | 265,724 | 56.2 | % | |||||||||||||||||
| Operating income | 8,432 | 2.0 | % | 5,387 | 1.1 | % | |||||||||||||||||
| Interest expense, net | 12,057 | 2.8 | % | 10,958 | 2.3 | % | |||||||||||||||||
| Loss before income taxes | (3,625) | (0.8 | %) | (5,571) | (1.2 | %) | |||||||||||||||||
| Income tax benefit | (489) | (0.1 | %) | (3,253) | (0.7 | %) | |||||||||||||||||
| Net loss | $ | (3,136) | (0.7 | %) | $ | (2,318) | (0.5 | %) | |||||||||||||||
| Net loss per share – basic | $ | (0.14) | $ | (0.10) | |||||||||||||||||||
| Net loss per share – diluted | $ | (0.14) | $ | (0.10) | |||||||||||||||||||
| Reconciliation of weighted-average shares outstanding: | |||||||||||||||||||||||
| Basic weighted-average shares outstanding | 22,643 | 22,479 | |||||||||||||||||||||
| Dilutive effect of stock-based awards | — | — | |||||||||||||||||||||
| Diluted weighted-average shares outstanding | 22,643 | 22,479 | |||||||||||||||||||||
For the three months ended September 28, 2024 and September 30,2023, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.
Sleep Number Announces Third-quarter 2024 Results - Page 5 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited – in thousands, except per share amounts)
| Nine Months Ended | |||||||||||||||||||||||
| September 28, 2024 | % of Net Sales | September 30, 2023 | % of Net Sales | ||||||||||||||||||||
| Net sales | $ | 1,305,479 | 100.0 | % | $ | 1,457,964 | 100.0 | % | |||||||||||||||
| Cost of sales | 528,287 | 40.5 | % | 612,343 | 42.0 | % | |||||||||||||||||
| Gross profit | 777,192 | 59.5 | % | 845,621 | 58.0 | % | |||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing | 596,392 | 45.7 | % | 649,410 | 44.5 | % | |||||||||||||||||
| General and administrative | 111,722 | 8.6 | % | 111,144 | 7.6 | % | |||||||||||||||||
| Research and development | 34,602 | 2.7 | % | 42,521 | 2.9 | % | |||||||||||||||||
| Restructuring costs | 14,382 | 1.1 | % | — | 0.0 | % | |||||||||||||||||
| Total operating expenses | 757,098 | 58.0 | % | 803,075 | 55.1 | % | |||||||||||||||||
| Operating income | 20,094 | 1.5 | % | 42,546 | 2.9 | % | |||||||||||||||||
| Interest expense, net | 36,626 | 2.8 | % | 30,008 | 2.1 | % | |||||||||||||||||
| (Loss) income before income taxes | (16,532) | (1.3 | %) | 12,538 | 0.9 | % | |||||||||||||||||
| Income tax (benefit) expense | (863) | (0.1 | %) | 2,637 | 0.2 | % | |||||||||||||||||
| Net (loss) income | $ | (15,669) | (1.2 | %) | $ | 9,901 | 0.7 | % | |||||||||||||||
| Net (loss) income per share – basic | $ | (0.69) | $ | 0.44 | |||||||||||||||||||
| Net (loss) income per share – diluted | $ | (0.69) | $ | 0.44 | |||||||||||||||||||
| Reconciliation of weighted-average shares outstanding: | |||||||||||||||||||||||
| Basic weighted-average shares outstanding | 22,588 | 22,412 | |||||||||||||||||||||
| Dilutive effect of stock-based awards | — | 146 | |||||||||||||||||||||
| Diluted weighted-average shares outstanding | 22,588 | 22,558 | |||||||||||||||||||||
For the nine months ended September 28, 2024, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.
Sleep Number Announces Third-quarter 2024 Results - Page 6 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited – in thousands, except per share amounts)
subject to reclassification
| September 28, 2024 | December 30, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,592 | $ | 2,539 | |||||||
Accounts receivable, net of allowances of $1,134 and $1,437, respectively | 17,026 | 26,859 | |||||||||
| Inventories | 93,039 | 115,433 | |||||||||
| Prepaid expenses | 17,827 | 16,660 | |||||||||
| Other current assets | 40,784 | 44,637 | |||||||||
| Total current assets | 170,268 | 206,128 | |||||||||
| Non-current assets: | |||||||||||
| Property and equipment, net | 140,406 | 179,503 | |||||||||
| Operating lease right-of-use assets | 367,133 | 395,411 | |||||||||
| Goodwill and intangible assets, net | 66,468 | 66,634 | |||||||||
| Deferred income taxes | 27,267 | 20,253 | |||||||||
| Other non-current assets | 93,109 | 82,951 | |||||||||
| Total assets | $ | 864,651 | $ | 950,880 | |||||||
| Liabilities and Shareholders’ Deficit | |||||||||||
| Current liabilities: | |||||||||||
| Borrowings under revolving credit facility | $ | 516,500 | $ | 539,500 | |||||||
| Accounts payable | 127,990 | 135,901 | |||||||||
| Customer prepayments | 43,514 | 49,143 | |||||||||
| Accrued sales returns | 19,688 | 22,402 | |||||||||
| Compensation and benefits | 28,909 | 28,273 | |||||||||
| Taxes and withholding | 17,685 | 17,134 | |||||||||
| Operating lease liabilities | 82,488 | 81,760 | |||||||||
| Other current liabilities | 57,268 | 61,958 | |||||||||
| Total current liabilities | 894,042 | 936,071 | |||||||||
| Non-current liabilities: | |||||||||||
| Operating lease liabilities | 318,665 | 351,394 | |||||||||
| Other non-current liabilities | 100,728 | 105,343 | |||||||||
| Total non-current liabilities | 419,393 | 456,737 | |||||||||
| Total liabilities | 1,313,435 | 1,392,808 | |||||||||
| Shareholders’ deficit: | |||||||||||
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding | — | — | |||||||||
Common stock, $0.01 par value; 142,500 shares authorized, 22,371 and 22,235 shares issued and outstanding, respectively | 224 | 222 | |||||||||
| Additional paid-in capital | 25,527 | 16,716 | |||||||||
| Accumulated deficit | (474,535) | (458,866) | |||||||||
| Total shareholders’ deficit | (448,784) | (441,928) | |||||||||
| Total liabilities and shareholders’ deficit | $ | 864,651 | $ | 950,880 | |||||||
Sleep Number Announces Third-quarter 2024 Results - Page 7 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited – in thousands)
subject to reclassification
| Nine Months Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net (loss) income | $ | (15,669) | $ | 9,901 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 50,379 | 55,196 | |||||||||
| Stock-based compensation | 9,541 | 10,872 | |||||||||
| Net loss on disposals and impairments of assets | 2,457 | 464 | |||||||||
| Deferred income taxes | (7,014) | (13,433) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 9,833 | 7,374 | |||||||||
| Inventories | 22,394 | (2,190) | |||||||||
| Income taxes | 1,708 | 3,571 | |||||||||
| Prepaid expenses and other assets | (8,012) | (5,903) | |||||||||
| Accounts payable | 4,980 | 5,199 | |||||||||
| Customer prepayments | (5,629) | (27,279) | |||||||||
| Accrued compensation and benefits | 788 | (6,923) | |||||||||
| Other taxes and withholding | (1,157) | 5 | |||||||||
| Other accruals and liabilities | (13,775) | (5,038) | |||||||||
| Net cash provided by operating activities | 50,824 | 31,816 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (17,218) | (48,022) | |||||||||
| Proceeds from sales of property and equipment | 156 | 10 | |||||||||
| Issuance of notes receivable | (2,942) | (1,317) | |||||||||
| Net cash used in investing activities | (20,004) | (49,329) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net (decrease) increase in short-term borrowings | (31,039) | 20,334 | |||||||||
| Repurchases of common stock | (728) | (3,711) | |||||||||
| Proceeds from issuance of common stock | — | 428 | |||||||||
| Net cash (used in) provided by financing activities | (31,767) | 16,627 | |||||||||
| Net decrease in cash and cash equivalents | (947) | (886) | |||||||||
| Cash and cash equivalents, at beginning of period | 2,539 | 1,792 | |||||||||
| Cash and cash equivalents, at end of period | $ | 1,592 | $ | 906 | |||||||
Sleep Number Announces Third-quarter 2024 Results - Page 8 of 12
SLEEP NUMBER CORPORATION
AND SUBSIDIARIES
Supplemental Financial Information
(unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||||||||
| Percent of sales: | |||||||||||||||||||||||
| Retail stores | 87.8 | % | 86.6 | % | 87.9 | % | 87.1 | % | |||||||||||||||
| Online, phone, chat and other | 12.2 | % | 13.4 | % | 12.1 | % | 12.9 | % | |||||||||||||||
| Total Company | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Sales change rates: | |||||||||||||||||||||||
| Retail comparable-store sales | (7 | %) | (14 | %) | (9 | %) | (11 | %) | |||||||||||||||
| Online, phone and chat | (18 | %) | (14 | %) | (17 | %) | (13 | %) | |||||||||||||||
| Total Retail comparable sales change | (9 | %) | (14 | %) | (10 | %) | (11 | %) | |||||||||||||||
Net opened/closed stores and other | (1 | %) | 1 | % | 0 | % | 1 | % | |||||||||||||||
| Total Company | (10 | %) | (13 | %) | (10 | %) | (10 | %) | |||||||||||||||
| Stores open: | |||||||||||||||||||||||
| Beginning of period | 646 | 672 | 672 | 670 | |||||||||||||||||||
| Opened | 1 | 8 | 11 | 27 | |||||||||||||||||||
| Closed | (4) | (2) | (40) | (19) | |||||||||||||||||||
| End of period | 643 | 678 | 643 | 678 | |||||||||||||||||||
| Other metrics: | |||||||||||||||||||||||
Average sales per store ($ in 000's) 1 | $ | 2,670 | $ | 2,952 | |||||||||||||||||||
Average sales per square foot 1 | $ | 863 | $ | 963 | |||||||||||||||||||
Stores > $2 million net sales 2 | 60 | % | 67 | % | |||||||||||||||||||
Stores > $3 million net sales 2 | 20 | % | 27 | % | |||||||||||||||||||
Average revenue per smart bed unit 3 | $ | 5,771 | $ | 5,640 | $ | 5,778 | $ | 5,822 | |||||||||||||||
1 Trailing twelve months Total Retail comparable sales per store open at least one year.
2 Trailing twelve months for stores open at least one year (excludes online, phone and chat sales).
3 Represents Total Retail (stores, online, phone and chat) net sales divided by Total Retail smart bed units.
Sleep Number Announces Third-quarter 2024 Results - Page 9 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)
(in thousands)
We define earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) as net income plus: income tax expense, interest expense, depreciation and amortization, stock-based compensation, restructuring costs and asset impairments. Management believes Adjusted EBITDA is a useful indicator of our financial performance and our ability to generate cash from operating activities. Our definition of Adjusted EBITDA may not be comparable to similarly titled definitions used by other companies. The table below reconciles Adjusted EBITDA, which is a non-GAAP financial measure, to the comparable GAAP financial measure:
| Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||||||||
| Net (loss) income | $ | (3,136) | $ | (2,318) | $ | (40,857) | $ | 4,471 | |||||||||||||||
| Income tax (benefit) expense | (489) | (3,253) | (7,966) | 1,346 | |||||||||||||||||||
| Interest expense | 12,057 | 10,958 | 49,313 | 37,641 | |||||||||||||||||||
| Depreciation and amortization | 15,859 | 18,200 | 67,335 | 72,338 | |||||||||||||||||||
| Stock-based compensation | 1,432 | 982 | 13,523 | 15,511 | |||||||||||||||||||
Restructuring costs 1 | 1,963 | — | 30,110 | — | |||||||||||||||||||
| Asset impairments | — | 292 | 198 | 491 | |||||||||||||||||||
| Adjusted EBITDA | $ | 27,686 | $ | 24,861 | $ | 111,656 | $ | 131,798 | |||||||||||||||
1 Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023.
Free Cash Flow
(in thousands)
| Nine Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 50,824 | $ | 31,816 | $ | 9,980 | $ | (12,168) | |||||||||||||||
| Subtract: Purchases of property and equipment | 17,218 | 48,022 | 26,252 | 64,668 | |||||||||||||||||||
| Free cash flow | $ | 33,606 | $ | (16,206) | $ | (16,272) | $ | (76,836) | |||||||||||||||
Note - Our Adjusted EBITDA calculations and Free Cash Flow data are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.
GAAP - generally accepted accounting principles in the U.S.
Sleep Number Announces Third-quarter 2024 Results - Page 10 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Calculation of Net Leverage Ratio under Revolving Credit Facility
(in thousands)
Our calculation of Net Leverage Ratio under Revolving Credit Facility was changed effective with the amendment of our credit facility on November 2, 2023. Prior to the amendment, the calculation included capitalized operating lease obligations based on a multiple of six times annual rent expense. The amendment replaced this line item with operating lease liabilities included in our financial statements under ASC 842. The calculations in accordance with the November 2, 2023 amendment are presented below. The prior year is presented in conformity with the November 2, 2023 amendment.
| Trailing Twelve Months Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||
| Borrowings under revolving credit facility | $ | 516,500 | $ | 488,000 | |||||||
| Outstanding letters of credit | 7,147 | 7,147 | |||||||||
| Finance lease obligations | 261 | 338 | |||||||||
| Consolidated funded indebtedness | $ | 523,908 | $ | 495,485 | |||||||
Operating lease liabilities 1 | 401,153 | 439,722 | |||||||||
| Total debt including operating lease liabilities (a) | $ | 925,061 | $ | 935,207 | |||||||
| Adjusted EBITDA (see above) | $ | 111,656 | $ | 131,798 | |||||||
| Consolidated rent expense | 108,863 | 113,204 | |||||||||
| Consolidated EBITDAR (b) | $ | 220,519 | $ | 245,002 | |||||||
| Net Leverage Ratio under revolving credit facility (a divided by b) | 4.2 to 1.0 | 3.8 to 1.0 | |||||||||
1Reflects operating lease liabilities included in our financial statements under ASC 842. The prior period has been updated to reflect this calculation.
Note - Our Net Leverage Ratio under Revolving Credit Facility, Adjusted EBITDA and EBITDAR calculations are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.
GAAP - generally accepted accounting principles in the U.S.
Sleep Number Announces Third-quarter 2024 Results - Page 11 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Calculation of Return on Invested Capital (Adjusted ROIC)
(in thousands)
Adjusted ROIC is a financial measure we use to determine how efficiently we deploy our capital. It quantifies the return we earn on our adjusted invested capital. Management believes Adjusted ROIC is also a useful metric for investors and financial analysts. We compute Adjusted ROIC as outlined below. Our definition and calculation of Adjusted ROIC may not be comparable to similarly titled definitions and calculations used by other companies. The tables below reconcile adjusted net operating profit after taxes (Adjusted NOPAT) and total adjusted invested capital, which are non-GAAP financial measures, to the comparable GAAP financial measures:
| Trailing Twelve Months Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||
| Adjusted net operating profit after taxes (Adjusted NOPAT) | |||||||||||
| Operating income | $ | 490 | $ | 43,458 | |||||||
Add: Operating lease interest 1 | 27,371 | 27,497 | |||||||||
Less: Income taxes 2 | (5,474) | (1,168) | |||||||||
| Adjusted NOPAT | $ | 22,387 | $ | 69,787 | |||||||
| Average adjusted invested capital | |||||||||||
| Total deficit | $ | (448,784) | $ | (420,687) | |||||||
Add: Long-term debt 3 | 516,761 | 488,338 | |||||||||
Add: Operating lease liabilities 4 | 401,153 | 439,722 | |||||||||
| Total adjusted invested capital at end of period | $ | 469,130 | $ | 507,373 | |||||||
Average adjusted invested capital 5 | $ | 502,494 | $ | 469,782 | |||||||
Adjusted ROIC 6 | 4.5 | % | 14.9 | % | |||||||
| 1 | Represents the interest expense component of lease expense included in our financial statements under ASC 842, Leases. | ||||
| 2 | Reflects annual effective income tax rates, before discrete adjustments, of 19.6% and 1.6% for September 28, 2024 and September 30, 2023, respectively. | ||||
| 3 | Long-term debt includes existing finance lease liabilities. | ||||
| 4 | Reflects operating lease liabilities included in our financial statements under ASC 842. | ||||
| 5 | Average adjusted invested capital represents the average of the last five fiscal quarters' ending adjusted invested capital balances. | ||||
| 6 | Adjusted ROIC equals Adjusted NOPAT divided by average adjusted invested capital. | ||||
| Note - The Company's Adjusted ROIC calculation and data are considered non-GAAP financial measures and are not in accordance with, or preferable to, GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts. The Company updated its Adjusted ROIC calculation effective beginning with the reporting period ended December 31, 2022, to reflect adjustments consistent with ASC 842. | |||||
| GAAP - generally accepted accounting principles in the U.S. | |||||
Sleep Number Announces Third-quarter 2024 Results - Page 12 of 12
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
Reported to Adjusted Statements of Operations Data Reconciliation
(in thousands, except per share amounts)
| Three Months Ended | |||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||||||||||||||
| As Reported | Restructuring Costs 1,2 | As Adjusted | As Reported | ||||||||||||||||||||
| Operating income | $ | 8,432 | $ | 1,963 | $ | 10,395 | $ | 5,387 | |||||||||||||||
| Interest expense, net | 12,057 | — | 12,057 | 10,958 | |||||||||||||||||||
| Loss before income taxes | (3,625) | 1,963 | (1,662) | (5,571) | |||||||||||||||||||
| Income tax (benefit) expense | (489) | 465 | (24) | (3,253) | |||||||||||||||||||
| Net loss | $ | (3,136) | $ | 1,498 | $ | (1,638) | $ | (2,318) | |||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||
| Basic | $ | (0.14) | $ | 0.07 | $ | (0.07) | $ | (0.10) | |||||||||||||||
| Diluted | $ | (0.14) | $ | 0.07 | $ | (0.07) | $ | (0.10) | |||||||||||||||
| Basic Shares | 22,643 | 22,643 | 22,643 | 22,479 | |||||||||||||||||||
| Diluted Shares | 22,643 | 22,643 | 22,643 | 22,479 | |||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||||||||||||||
| As Reported | Restructuring Costs 1,2 | As Adjusted | As Reported | ||||||||||||||||||||
| Operating income | $ | 20,094 | $ | 14,382 | $ | 34,476 | $ | 42,546 | |||||||||||||||
| Interest expense, net | 36,626 | — | 36,626 | 30,008 | |||||||||||||||||||
| (Loss) income before income taxes | (16,532) | 14,382 | (2,150) | 12,538 | |||||||||||||||||||
| Income tax (benefit) expense | (863) | 3,409 | 2,546 | 2,637 | |||||||||||||||||||
| Net (loss) income | $ | (15,669) | $ | 10,973 | $ | (4,696) | $ | 9,901 | |||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||
| Basic | $ | (0.69) | $ | 0.49 | $ | (0.20) | $ | 0.44 | |||||||||||||||
| Diluted | $ | (0.69) | $ | 0.49 | $ | (0.20) | $ | 0.44 | |||||||||||||||
| Basic Shares | 22,588 | 22,588 | 22,588 | 22,412 | |||||||||||||||||||
| Diluted Shares | 22,588 | 22,588 | 22,588 | 22,558 | |||||||||||||||||||
1 Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023.
2 The income tax expense is calculated using the estimated U.S. federal and state statutory tax rate of 23.7%.
Note - Our "as adjusted" data is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates year-over-year comparisons for investors and financial analysts.
GAAP - generally accepted accounting principles in the U.S.