Sleep Number Corp

NASDAQ:SNBRUnited States

Oct 30, 2024

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• -- Earnings Flash (SNBR) SLEEP NUMBER CORPORATION Reports Q3 Loss $-0.07, from 4:03PM ET on Wednesday Oct 30, 2024 by MT Newswires

  4:03PM ET on Wednesday Oct 30, 2024 by MT Newswires
  Companies Mentioned: SNBR
  04:03 PM EDT, 10/30/2024 (MT Newswires) -- ...

• -- Earnings Flash (SNBR) SLEEP NUMBER CORPORATION Reports Q3 Revenue $426.6M, from 4:02PM ET on Wednesday Oct 30, 2024 by MT Newswires

  4:02PM ET on Wednesday Oct 30, 2024 by MT Newswires
  Companies Mentioned: SNBR
  04:02 PM EDT, 10/30/2024 (MT Newswires) -- ...

• Sleep Number Announces Third Quarter 2024 Results, from 4:01PM ET on Wednesday Oct 30, 2024 by Dow Jones

  4:01PM ET on Wednesday Oct 30, 2024 by Dow Jones
  Companies Mentioned: SNBR
  Consolidated rent expense 108,863 113,204 --- ---------------- ------------ Consolidated EBITDAR (b) $ 220,519 $ 245,002 === ================ ============ Net Leverage Ratio under revolving 4.2 to 1.0 3.8 to 1.0 credit facility (a divided by b) ===================== ================ (1) Reflects 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 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, September 30, 2024 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 CORPORATION AND SUBSIDIARIES Reported to Adjusted Statements of Operations Data Reconciliation (in thousands, except per share amounts) Three Months Ended ------------------------------------------------------------ September 30, September 28, 2024 2023 -------------------------------------------- -------------- As Restructuring As As Reported Costs (1,2) Adjusted 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 September 28, 2024 30, 2023 -------------------------------------- ----------- As Restructuring As As Reported Costs (1,2) Adjusted 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.