National Vision Holdings, Inc. Reports Fourth Quarter and Fiscal 2021 Financial Results
National Vision Holdings, Inc. (EYE) reported a 58.6% increase in net income to $6.2 million and a 56.2% rise in diluted EPS to $0.07 for Q4 2021, compared to Q4 2019. Net revenue reached $477.9 million, growing 18.9% from Q4 2019 but down 3.8% from Q4 2020. The company plans to open at least 80 new stores in 2022 and has expanded its share repurchase program by $100 million. For fiscal 2022, it expects net revenue between $2.12 and $2.17 billion. Market challenges include the ongoing effects of COVID-19 and the impact of severe weather on operations.
- Net revenue increased 20.6% to $2.08 billion compared to fiscal 2019.
- Net income increased 291% to $128.2 million for fiscal 2021 compared to fiscal 2019.
- Adjusted Diluted EPS increased 97.7% to $1.48 for fiscal 2021 compared to fiscal 2019.
- Planned opening of at least 80 new stores in 2022.
- Net revenue decreased 3.8% to $477.9 million compared to Q4 2020.
- Net income decreased 82.3% to $6.2 million in Q4 2021 compared to Q4 2020.
- Adjusted Operating Income decreased 73.3% to $16.8 million in Q4 2021 compared to Q4 2020.
Expands Share Repurchase Program by
Quarterly highlights compared to fourth quarter 2019:
-
Net revenue increased
18.9% to$477.9 million -
Comparable store sales growth of
13.8% ; Adjusted Comparable Store Sales Growth of11.5% -
Net income increased
58.6% to$6.2 million 56.2% to$0.07 -
Adjusted Operating Income increased
1.7% to$16.8 million -
Adjusted Diluted EPS increased
35.4% to$0.13 - Announces plans to open at least 80 new stores in 2022
Quarterly highlights compared to fourth quarter 2020:
-
Net revenue decreased
3.8% to$477.9 million -
Comparable store sales growth of
1.7% ; Adjusted Comparable Store Sales Growth of1.2% -
Net income decreased
82.3% to$6.2 million 82.2% to$0.07 -
Adjusted Operating Income decreased
73.3% to$16.8 million -
Adjusted Diluted EPS decreased
71.3% to$0.13
Given the impact of the COVID-19 pandemic in 2020, consistent with our second and third quarter releases, this release includes a comparison of fiscal 2021 results to fiscal 2019 pre-COVID results, in addition to a comparison to fiscal 2020. For a complete discussion of fiscal 2021 results as compared to fiscal 2020, please see the Form 10-K filing for the year ended
“National Vision had another great year in 2021, delivering record annual sales and profitability. We capped it off with better-than-expected results in the fourth quarter, including positive comps driven once again by an increase in customer transactions,” stated
“While our start to 2022 has been challenged by short-term macro headwinds related to the Omicron variant and severe weather impacting store operations and customer traffic, we remain excited about our ability to continue to grow market share. Our two growth brands – America’s Best and
Adjusted Comparable Store Sales Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Diluted EPS, Adjusted Operating Margin, Adjusted EBITDA Margin, and EBITDA are not measures recognized under generally accepted accounting principles (“GAAP”). Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP to GAAP Financial Measures” below for more information.
Fourth Quarter 2021 Summary compared to Fourth Quarter 2019
-
Net revenue increased
18.9% to$477.9 million -
Net revenue was positively impacted by
1.1% due to the timing of unearned revenue. -
Comparable store sales growth was
13.8% and Adjusted Comparable Store Sales Growth was11.5% . -
During the fourth quarter of 2021, the Company opened 16 new stores and ended the quarter with 1,278 stores. Overall, store count grew
11.0% fromDecember 28, 2019 toJanuary 1, 2022 . -
Costs applicable to revenue increased
16.1% to$217.7 million 45.6% compared to the fourth quarter of 2019. This decrease as a percentage of net revenue was primarily driven by increased eyeglass mix and higher eyeglass margin. -
Selling, general and administrative expenses (“SG&A”) increased
26.2% to$224.8 million 47.0% compared to the fourth quarter of 2019. This increase as a percentage of net revenue was primarily driven by higher advertising investment, and to a lesser extent, higher corporate overhead and payroll expense, partially offset by leverage of occupancy expense and lower performance-based incentive compensation. -
Net income increased
58.6% to$6.2 million -
Diluted earnings per share increased
56.2% to$0.07 35.4% to$0.13 $0.03 -
Adjusted Operating Income increased
1.7% to$16.8 million 3.5% compared to the fourth quarter of 2019. The net change in margin on unearned revenue benefited Adjusted Operating Income by$3.5 million
Fourth Quarter 2021 Summary compared to Fourth Quarter 2020
-
Net revenue decreased
3.8% to$477.9 million 1.4% due to the timing of unearned revenue. -
The 14th week in the fourth quarter of fiscal 2020 added
$32.2 million $0.01 -
Comparable store sales growth was
1.7% and Adjusted Comparable Store Sales Growth was1.2% . -
The Company opened 16 new stores and ended the quarter with 1,278 stores. Overall, store count grew
6.1% fromJanuary 2, 2021 toJanuary 1, 2022 . -
Costs applicable to revenue increased
0.6% to$217.7 million 45.6% compared to the fourth quarter of 2020. This increase, as a percentage of net revenue, was primarily driven by higher growth in optometrist-related costs, lower eyeglass mix, and lower eyeglass margin. -
SG&A increased
12.5% to$224.8 million 47.0% compared to the fourth quarter of 2020. This increase, as a percentage of net revenue, was driven by higher payroll expense, higher advertising investment, and corporate overhead. -
Net income decreased
82.3% to$6.2 million -
Diluted earnings per share decreased
82.2% to$0.07 71.3% to$0.13 $0.04 -
Adjusted Operating Income decreased
73.3% to$16.8 million 3.5% compared to the fourth quarter of 2020. The net change in margin on unearned revenue negatively impacted Adjusted Operating Income by$5.5 million
Fiscal 2021 Summary compared to Fiscal 2019
-
Net revenue increased
20.6% to$2.08 billion 0.2% due to the timing of unearned revenue. -
Comparable store sales growth was
15.1% and Adjusted Comparable Store Sales Growth was14.7% . -
Costs applicable to revenue increased
12.2% to$904.8 million 43.5% compared to fiscal year 2019. This decrease as a percentage of net revenue was primarily driven by higher eyeglass mix, higher eyeglass margin, and lower growth in optometrist-related costs. -
SG&A increased
21.0% to$900.8 million 43.3% compared to fiscal year 2019. This increase as a percentage of net revenue was primarily driven by increases in advertising investment and performance-based incentive compensation, offset by leverage of corporate overhead and occupancy expenses. -
Net income increased
291% to$128.2 million -
Diluted earnings per share increased
257% to$1.43 97.7% to$1.48 $0.02 -
Adjusted Operating Income increased
79.1% to$204.7 million 9.8% compared to fiscal year 2019. The net change in margin on unearned revenue positively impacted Adjusted Operating Income by$2.7 million
Fiscal 2021 Summary compared to Fiscal 2020
-
Net revenue increased
21.5% to$2.08 billion 0.4% due to the timing of unearned revenue. -
Comparable store sales growth was
22.4% and Adjusted Comparable Store Sales Growth was23.0% . -
Costs applicable to revenue increased
15.0% to$904.8 million 43.5% compared to fiscal year 2020. This decrease as a percentage of net revenue was primarily driven by lower growth in optometrist-related costs, increased eyeglass mix and higher eyeglass margin. -
SG&A increased
24.3% to$900.8 million 43.3% compared to fiscal year 2020. This increase as a percentage of net revenue was primarily driven by increases in advertising investment and performance-based incentive compensation, partially offset by leverage of store payroll and occupancy expenses. -
Net income increased
254% to$128.2 million -
Diluted earnings per share increased
227% to$1.43 62.6% to$1.48 $0.05 -
Adjusted Operating Income increased
52.6% to$204.7 million 9.8% compared to fiscal year 2020. The net change in margin on unearned revenue positively impacted Adjusted Operating Income by$5.5 million
Balance Sheet and Cash Flow Highlights
-
The Company’s cash balance was
$305.8 million January 1, 2022 . The Company had no borrowings under its$300.0 million $6.4 million -
Total debt was
$570.1 million January 1, 2022 , consisting of outstanding first lien term loans, convertible senior notes (“2025 Notes”) and finance lease obligations, net of unamortized discounts. -
Cash flows from operating activities for 2021 increased to
$258.9 million $235.0 million $165.1 million -
Capital expenditures for 2021 totaled
$95.5 million $76.8 million $101.3 million -
In
November 2021 , the Company voluntarily prepaid$50 million
Share Repurchase Program
-
In
November 2021 , the Company's board of directors authorized an increase in the Company's repurchase program up to$100 million $69.9 million -
In
February 2022 , the board authorized another$100 million $130 million
Fiscal 2022 Outlook
The Company is continuing its practice of providing selected full year guidance for 2022 and the outlook reflects current expected impacts related to COVID-19. However, the ultimate impacts of COVID-19 on the Company's financial outlook remains uncertain. The outlook shown below assumes no material deterioration to the Company's current business operations as a result of geopolitical instability or COVID-19 and its variants, government actions and regulations, but does take into account first quarter to date impacts from the Omicron variant and severe weather.
The Company is providing the following outlook for the 52 weeks ending
|
Fiscal 2022 Outlook |
New Stores |
At least 80 |
Adjusted Comparable Store Sales Growth |
( |
Net Revenue |
|
Adjusted Operating Income |
|
Adjusted Diluted EPS1 |
|
Depreciation and Amortization2 |
|
Interest3 |
|
Tax Rate4 |
~ |
Capital Expenditures |
|
|
|
1 - Assumes approximately 95.3 million shares, including 12.9 million shares for the convertible notes under the if-converted method
|
|
The fiscal 2022 outlook information provided above includes Adjusted Operating Income and Adjusted Diluted EPS guidance, which are non-GAAP financial measures management uses in measuring performance. The Company is not able to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including taxes and non-recurring items, which would be included in GAAP results. The impact of such items and unanticipated events could be potentially significant.
The fiscal 2022 outlook is forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and those variations may be material. As such, the Company’s results may not fall within the ranges contained in its fiscal 2022 outlook. The Company uses these forward looking measures internally to assess and benchmark its results and strategic plans.
Conference Call Details
A conference call to discuss the fourth quarter 2021 financial results is scheduled for today,
A telephone replay will be available shortly after the broadcast through
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements contained under “Fiscal 2022 Outlook” as well as other statements related to our current beliefs and expectations regarding the performance of our industry, the Company’s strategic direction, market position, prospects and future results. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Caution should be taken not to place undue reliance on any forward-looking statement as such statements speak only as of the date when made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Forward-looking statements are not guarantees and are subject to various risks and uncertainties, which may cause actual results to differ materially from those implied in forward-looking statements. Such factors include, but are not limited to, the COVID-19 pandemic and its resurgence and variants, and the impact of evolving federal, state, and local governmental actions in response thereto, including risks stemming from vaccination and testing programs and mandates; customer behavior in response to the continuing pandemic and its more recent outbreaks of variants, including the impact of such behavior on in-store traffic and sales; overall decline in the health of the economy and other factors impacting consumer spending, including inflation; our ability to keep our reopened stores open in a safe and cost-effective manner, or at all, in light of the continuing COVID-19 pandemic and its resurgence and variants; our ability to recruit and retain vision care professionals for our stores in general and in light of the pandemic; our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors; our ability to maintain the performance of our Host and Legacy brands and our current operating relationships with our Host and Legacy partners; our ability to adhere to extensive state, local and federal vision care and healthcare laws and regulations; our compliance with managed vision care laws and regulations; our ability to maintain sufficient levels of cash flow from our operations to execute or sustain our growth strategy or obtain additional financing at satisfactory terms or at all; the loss of, or disruption in the operations of, one or more of our distribution centers and/or optical laboratories, resulting in the inability to fulfill customer orders and deliver our products in a timely manner; risks associated with vendors from whom our products are sourced, including our dependence on a limited number of suppliers; our ability to compete successfully; our ability to effectively operate our information technology systems and prevent interruption or security breach; the impact of wage rate increases, inflation, cost increases and increases in raw material prices and energy prices; our growth strategy straining our existing resources and causing the performance of our existing stores to suffer; our ability to successfully and efficiently implement our marketing, advertising and promotional efforts; risks associated with leasing substantial amounts of space, including future increases in occupancy costs; the impact of certain technological advances, and the greater availability of, or increased consumer preferences for, vision correction alternatives to prescription eyeglasses or contact lenses, and future drug development for the correction of vision-related problems; our ability to retain our existing senior management team and attract qualified new personnel; our ability to manage our inventory; seasonal fluctuations in our operating results and inventory levels; our reliance on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues; risks associated with our e-commerce and omni-channel business; product liability, product recall or personal injury issues; our failure to comply with, or changes in, laws, regulations, enforcement activities and other requirements; the impact of any adverse litigation judgments or settlements resulting from legal proceedings relating to our business operations; risk of losses arising from our investments in technological innovators in the optical retail industry; our ability to adequately protect our intellectual property; risks associated with environmental, social and governance issues, including climate change; our significant amount of indebtedness and our ability to generate sufficient cash flow to satisfy our debt obligations; a change in interest rates as well as changes in benchmark rates and uncertainty related to the foregoing; restrictions in our credit agreement that limits our flexibility in operating our business; potential dilution to existing stockholders upon the conversion of our convertible notes; and risks related to owning our common stock, including our ability to comply with requirements to design and implement and maintain effective internal controls. Additional information about these and other factors that could cause National Vision’s results to differ materially from those described in the forward-looking statements can be found in filings by National Vision with the
Non-GAAP Financial Measures
To supplement the Company’s financial information presented in accordance with GAAP and aid understanding of the Company’s business performance, the Company uses certain non-GAAP financial measures, namely “EBITDA,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Diluted EPS,” “Adjusted Comparable Stores Sales Growth,” “Adjusted SG&A,” and “Adjusted SG&A Percent of Net Revenue.” We believe EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A and Adjusted SG&A Percent of Net Revenue assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses these non-GAAP financial measures to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
To supplement the Company’s comparable store sales growth presented in accordance with GAAP, the Company provides “Adjusted Comparable Store Sales Growth,” which is a non-GAAP financial measure we believe is useful because it provides timely and accurate information relating to the two core metrics of retail sales: number of transactions and value of transactions. Management uses Adjusted Comparable Store Sales Growth as the basis for key operating decisions, such as allocation of advertising to particular markets and implementation of special marketing programs. Accordingly, we believe that Adjusted Comparable Store Sales Growth provides timely and accurate information relating to the operational health and overall performance of each brand. We also believe that, for the same reasons, investors find our calculation of Adjusted Comparable Store Sales Growth to be meaningful.
In the first quarter of 2020, we introduced Adjusted Operating Income and Adjusted Operating Margin as measures of performance we will use in connection with Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Diluted EPS. We believe Adjusted Operating Income and Adjusted Operating Margin enhance an understanding of our performance by highlighting the results from ongoing operations and the profitability of our business. Further, consistent with our presentation of Adjusted Operating Income, beginning with the first quarter of 2020, we no longer exclude new store pre-opening expenses and non-cash rent from our presentation of Adjusted EBITDA, Adjusted SG&A, and Adjusted Diluted EPS. See our Form 8-K filed with the
EBITDA: We define EBITDA as net income, plus interest expense, income tax provision (benefit), and depreciation and amortization.
Adjusted Operating Income: We define Adjusted Operating Income as net income, plus interest expense and income tax provision (benefit), further adjusted to exclude stock compensation expense, loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, amortization of acquisition intangibles, and other expenses.
Adjusted Operating Margin: We define Adjusted Operating Margin as Adjusted Operating Income as a percentage of net revenue.
Adjusted EBITDA: We define Adjusted EBITDA as net income, plus interest expense, income tax provision (benefit) and depreciation and amortization, further adjusted to exclude stock compensation expense, loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, and other expenses.
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net revenue.
Adjusted Diluted EPS: We define Adjusted Diluted EPS as diluted earnings per share, adjusted for the per share impact of stock compensation expense, loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, amortization of acquisition intangibles, amortization of debt discounts and deferred financing costs of the term loan borrowings, amortization of the conversion feature and deferred financing costs related to the 2025 Notes when not required under
Adjusted SG&A: We define Adjusted SG&A as SG&A adjusted to exclude stock compensation expense, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expense, and other expenses except for the share of losses on equity method investments.
Adjusted SG&A Percent of Net Revenue: We define Adjusted SG&A Percent of Net Revenue as Adjusted SG&A as a percentage of net revenue.
Adjusted Comparable Store Sales Growth: We measure Adjusted Comparable Store Sales Growth as the increase or decrease in sales recorded by the comparable store base in any reporting period, compared to sales recorded by the comparable store base in the prior reporting period, which we calculate as follows: (i) sales are recorded on a cash basis (i.e. when the order is placed and paid for or submitted to a managed care payor, compared to when the order is delivered), utilizing cash basis point of sale information from stores; (ii) stores are added to the calculation during the 13th full fiscal month following the store’s opening; (iii) closed stores are removed from the calculation for time periods that are not comparable; (iv) sales from partial months of operation are excluded when stores do not open or close on the first day of the month; and (v) when applicable, we adjust for the effect of the 53rd week. Quarterly, year-to-date and annual adjusted comparable store sales are aggregated using only sales from all whole months of operation included in both the current reporting period and the prior reporting period. When a partial month is excluded from the calculation, the corresponding month in the subsequent period is also excluded from the calculation. There may be variations in the way in which some of our competitors and other retailers calculate comparable store sales. As a result, our adjusted comparable store sales may not be comparable to similar data made available by other retailers. We did not adjust our calculation of Adjusted Comparable Store Sales Growth for the temporary closure of stores to the public in 2020 as a result of the COVID-19 pandemic.
EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, Adjusted SG&A Percent of Net Revenue and Adjusted Comparable Store Sales Growth are not recognized terms under GAAP and should not be considered as an alternative to net income or the ratio of net income to net revenue as a measure of financial performance, SG&A, the ratio of SG&A to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, comparable store sales growth as a measure of operating performance, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
Please see “Reconciliation of Non-GAAP to GAAP Financial Measures” below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures.
|
|||||||
Consolidated Balance Sheets |
|||||||
As of |
|||||||
In Thousands, Except Par Value |
|||||||
ASSETS |
As of
|
|
As of
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
305,800 |
|
|
$ |
373,903 |
|
Accounts receivable, net |
|
55,697 |
|
|
|
57,989 |
|
Inventories |
|
123,669 |
|
|
|
111,274 |
|
Prepaid expenses and other current assets |
|
29,410 |
|
|
|
23,484 |
|
Total current assets |
|
514,576 |
|
|
|
566,650 |
|
|
|
|
|
||||
Property and equipment, net |
|
346,436 |
|
|
|
341,293 |
|
Other assets: |
|
|
|
||||
|
|
777,613 |
|
|
|
777,613 |
|
Trademarks and trade names |
|
240,547 |
|
|
|
240,547 |
|
Other intangible assets, net |
|
42,020 |
|
|
|
49,511 |
|
Right of use assets |
|
354,900 |
|
|
|
340,141 |
|
Other assets |
|
16,999 |
|
|
|
17,743 |
|
Total non-current assets |
|
1,778,515 |
|
|
|
1,766,848 |
|
Total assets |
$ |
2,293,091 |
|
|
$ |
2,333,498 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
64,331 |
|
|
$ |
64,861 |
|
Other payables and accrued expenses |
|
119,323 |
|
|
|
110,309 |
|
Unearned revenue |
|
29,895 |
|
|
|
32,657 |
|
Deferred revenue |
|
65,325 |
|
|
|
58,899 |
|
Current maturities of long-term debt and finance lease obligations |
|
3,999 |
|
|
|
3,598 |
|
Current operating lease obligations |
|
60,930 |
|
|
|
58,356 |
|
Total current liabilities |
|
343,803 |
|
|
|
328,680 |
|
|
|
|
|
||||
Long-term debt and finance lease obligations, less current portion and debt
|
|
566,081 |
|
|
|
651,763 |
|
Non-current operating lease obligations |
|
342,241 |
|
|
|
327,371 |
|
Other non-current liabilities: |
|
|
|
||||
Deferred revenue |
|
23,166 |
|
|
|
20,828 |
|
Other liabilities |
|
8,974 |
|
|
|
17,415 |
|
Deferred income taxes, net |
|
82,846 |
|
|
|
80,939 |
|
Total other non-current liabilities |
|
114,986 |
|
|
|
119,182 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
838 |
|
|
|
821 |
|
Additional paid-in capital |
|
750,478 |
|
|
|
795,697 |
|
Accumulated other comprehensive loss |
|
(1,940 |
) |
|
|
(4,400 |
) |
Retained earnings |
|
278,395 |
|
|
|
142,880 |
|
|
|
(101,791 |
) |
|
|
(28,496 |
) |
Total stockholders’ equity |
|
925,980 |
|
|
|
906,502 |
|
Total liabilities and stockholders’ equity |
$ |
2,293,091 |
|
|
$ |
2,333,498 |
|
Note: Fiscal year 2021 includes 52 weeks. Fiscal year 2020 includes 53 weeks.
|
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Consolidated Statements of Operations and Comprehensive Income |
|||||||||||||||||||||||
For the Three Months and Fiscal Years Ended |
|||||||||||||||||||||||
In Thousands, Except Earnings Per Share |
|||||||||||||||||||||||
|
Three Months Ended |
|
Fiscal Year |
||||||||||||||||||||
|
|
|
|
|
December
|
|
2021 |
|
2020 |
|
2019 |
||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net product sales |
$ |
391,477 |
|
|
$ |
412,399 |
|
|
$ |
329,654 |
|
|
$ |
1,718,344 |
|
|
$ |
1,418,283 |
|
|
$ |
1,426,136 |
|
Net sales of services and plans |
|
86,374 |
|
|
|
84,297 |
|
|
|
72,109 |
|
|
|
361,181 |
|
|
|
293,477 |
|
|
|
298,195 |
|
Total net revenue |
|
477,851 |
|
|
|
496,696 |
|
|
|
401,763 |
|
|
|
2,079,525 |
|
|
|
1,711,760 |
|
|
|
1,724,331 |
|
Costs applicable to revenue (exclusive
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Products |
|
148,026 |
|
|
|
149,504 |
|
|
|
130,175 |
|
|
|
633,116 |
|
|
|
551,783 |
|
|
|
574,351 |
|
Services and plans |
|
69,659 |
|
|
|
66,977 |
|
|
|
57,367 |
|
|
|
271,663 |
|
|
|
234,841 |
|
|
|
232,168 |
|
Total costs applicable to revenue |
|
217,685 |
|
|
|
216,481 |
|
|
|
187,542 |
|
|
|
904,779 |
|
|
|
786,624 |
|
|
|
806,519 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative
|
|
224,756 |
|
|
|
199,750 |
|
|
|
178,044 |
|
|
|
900,798 |
|
|
|
724,985 |
|
|
|
744,488 |
|
Depreciation and amortization |
|
24,450 |
|
|
|
22,614 |
|
|
|
23,674 |
|
|
|
97,089 |
|
|
|
91,585 |
|
|
|
87,244 |
|
Asset impairment |
|
2,949 |
|
|
|
1,089 |
|
|
|
1,506 |
|
|
|
4,427 |
|
|
|
22,004 |
|
|
|
8,894 |
|
Other expense (income), net |
|
62 |
|
|
|
(133 |
) |
|
|
2,636 |
|
|
|
(2,505 |
) |
|
|
(445 |
) |
|
|
3,611 |
|
Total operating expenses |
|
252,217 |
|
|
|
223,320 |
|
|
|
205,860 |
|
|
|
999,809 |
|
|
|
838,129 |
|
|
|
844,237 |
|
Income from operations |
|
7,949 |
|
|
|
56,895 |
|
|
|
8,361 |
|
|
|
174,937 |
|
|
|
87,007 |
|
|
|
73,575 |
|
Interest expense, net |
|
3,351 |
|
|
|
12,759 |
|
|
|
7,397 |
|
|
|
25,612 |
|
|
|
48,327 |
|
|
|
33,300 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,786 |
|
Earnings before income taxes |
|
4,598 |
|
|
|
44,136 |
|
|
|
964 |
|
|
|
149,325 |
|
|
|
38,680 |
|
|
|
30,489 |
|
Income tax provision (benefit) |
|
(1,621 |
) |
|
|
9,058 |
|
|
|
(2,956 |
) |
|
|
21,081 |
|
|
|
2,403 |
|
|
|
(2,309 |
) |
Net income |
$ |
6,219 |
|
|
$ |
35,078 |
|
|
$ |
3,920 |
|
|
$ |
128,244 |
|
|
$ |
36,277 |
|
|
$ |
32,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
$ |
0.08 |
|
|
$ |
0.43 |
|
|
$ |
0.05 |
|
|
$ |
1.57 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
Diluted |
$ |
0.07 |
|
|
$ |
0.42 |
|
|
$ |
0.05 |
|
|
$ |
1.43 |
|
|
$ |
0.44 |
|
|
$ |
0.40 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
82,109 |
|
|
|
81,126 |
|
|
|
79,271 |
|
|
|
81,820 |
|
|
|
80,565 |
|
|
|
78,608 |
|
Diluted |
|
83,064 |
|
|
|
95,925 |
|
|
|
81,785 |
|
|
|
96,134 |
|
|
|
82,793 |
|
|
|
81,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
6,219 |
|
|
$ |
35,078 |
|
|
$ |
3,920 |
|
|
$ |
128,244 |
|
|
$ |
36,277 |
|
|
$ |
32,798 |
|
Unrealized gain (loss) on hedge
|
|
1,209 |
|
|
|
2,073 |
|
|
|
1,489 |
|
|
|
6,158 |
|
|
|
(780 |
) |
|
|
(1,350 |
) |
Tax provision (benefit) of unrealized
|
|
309 |
|
|
|
529 |
|
|
|
382 |
|
|
|
3,698 |
|
|
|
(194 |
) |
|
|
(346 |
) |
Comprehensive income |
$ |
7,119 |
|
|
$ |
36,622 |
|
|
$ |
5,027 |
|
|
$ |
130,704 |
|
|
$ |
35,691 |
|
|
$ |
31,794 |
|
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
Three months ended
Diluted EPS for the fourth quarter of 2021 and 2020 and fiscal year 2021 is calculated using the if-converted method for the 2025 Notes. We added back
|
|||||||||||
Consolidated Statements of Cash Flows |
|||||||||||
For the Fiscal Years Ended |
|||||||||||
In Thousands |
|||||||||||
|
Fiscal Year
|
|
Fiscal Year
|
|
Fiscal Year
|
||||||
Cash flows from operating activities: |
|
|
|
|
|||||||
Net income |
$ |
128,244 |
|
|
$ |
36,277 |
|
|
$ |
32,798 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation and amortization |
|
97,089 |
|
|
|
91,585 |
|
|
|
87,244 |
|
Amortization of debt discount and deferred financing costs |
|
4,321 |
|
|
|
11,895 |
|
|
|
1,289 |
|
Asset impairment |
|
4,427 |
|
|
|
22,004 |
|
|
|
8,894 |
|
Deferred income tax expense (benefit) |
|
16,701 |
|
|
|
(233 |
) |
|
|
(2,378 |
) |
Stock based compensation expense |
|
14,886 |
|
|
|
10,740 |
|
|
|
12,670 |
|
Losses (gains) on change in fair value of derivatives |
|
(3,286 |
) |
|
|
4,014 |
|
|
|
— |
|
Inventory adjustments |
|
2,481 |
|
|
|
4,852 |
|
|
|
4,352 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
9,786 |
|
Other |
|
94 |
|
|
|
5,092 |
|
|
|
16,078 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
||||||
Accounts receivable, net |
|
1,182 |
|
|
|
(13,697 |
) |
|
|
(6,925 |
) |
Inventories |
|
(14,876 |
) |
|
|
11,430 |
|
|
|
(15,886 |
) |
Operating lease right of use assets and liabilities |
|
(41 |
) |
|
|
1,518 |
|
|
|
(716 |
) |
Other assets |
|
(6,456 |
) |
|
|
(8,096 |
) |
|
|
5,939 |
|
Accounts payable |
|
(530 |
) |
|
|
24,079 |
|
|
|
(2,860 |
) |
Deferred and unearned revenue |
|
6,002 |
|
|
|
6,982 |
|
|
|
5,829 |
|
Other liabilities |
|
8,700 |
|
|
|
26,539 |
|
|
|
8,967 |
|
Net cash provided by operating activities |
|
258,938 |
|
|
|
234,981 |
|
|
|
165,081 |
|
Cash flows from investing activities: |
|
|
|
|
|
||||||
Purchase of property and equipment |
|
(95,515 |
) |
|
|
(76,823 |
) |
|
|
(101,325 |
) |
Other |
|
2,618 |
|
|
|
413 |
|
|
|
694 |
|
Net cash used for investing activities |
|
(92,897 |
) |
|
|
(76,410 |
) |
|
|
(100,631 |
) |
Cash flows from financing activities: |
|
|
|
|
|
||||||
Borrowings on long-term debt, net of discounts |
|
— |
|
|
|
548,769 |
|
|
|
566,550 |
|
Repayments on long-term debt |
|
(167,375 |
) |
|
|
(369,269 |
) |
|
|
(591,925 |
) |
Proceeds from issuance of common stock |
|
11,838 |
|
|
|
13,105 |
|
|
|
14,767 |
|
Purchase of treasury stock |
|
(73,295 |
) |
|
|
(689 |
) |
|
|
(25,646 |
) |
Payments of debt issuance costs |
|
(900 |
) |
|
|
(12,439 |
) |
|
|
(2,930 |
) |
Payments on finance lease obligations |
|
(4,592 |
) |
|
|
(3,196 |
) |
|
|
(2,957 |
) |
Net cash provided by (used for) financing activities |
|
(234,324 |
) |
|
|
176,281 |
|
|
|
(42,141 |
) |
Net change in cash, cash equivalents and restricted cash |
|
(68,283 |
) |
|
|
334,852 |
|
|
|
22,309 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
375,159 |
|
|
|
40,307 |
|
|
|
17,998 |
|
Cash, cash equivalents and restricted cash, end of year |
$ |
306,876 |
|
|
$ |
375,159 |
|
|
$ |
40,307 |
|
|
|
|
|
|
|
||||||
Supplemental cash flow information: |
|
|
|
|
|
||||||
Cash paid for interest |
|
24,897 |
|
|
|
30,786 |
|
|
|
33,935 |
|
Cash paid for taxes |
|
10,428 |
|
|
|
894 |
|
|
|
684 |
|
Capital expenditures accrued at the end of the period |
|
10,571 |
|
|
|
8,455 |
|
|
|
9,059 |
|
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
|
|||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures |
|||||||||||||||||||||||
For the Three Months and Fiscal Years Ended |
|||||||||||||||||||||||
In Thousands, Except Earnings Per Share |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
Reconciliation of Adjusted Operating Income to Net Income |
|||||||||||||||||||||||
In thousands |
Three
|
|
Three
|
|
Three
|
|
Fiscal Year
|
|
Fiscal Year
|
|
Fiscal Year
|
||||||||||||
Net income |
$ |
6,219 |
|
|
$ |
35,078 |
|
|
$ |
3,920 |
|
|
$ |
128,244 |
|
|
$ |
36,277 |
|
|
$ |
32,798 |
|
Interest expense |
|
3,351 |
|
|
|
12,759 |
|
|
|
7,397 |
|
|
|
25,612 |
|
|
|
48,327 |
|
|
|
33,300 |
|
Income tax provision (benefit) |
|
(1,621 |
) |
|
|
9,058 |
|
|
|
(2,956 |
) |
|
|
21,081 |
|
|
|
2,403 |
|
|
|
(2,309 |
) |
Stock compensation expense (a) |
|
1,020 |
|
|
|
2,405 |
|
|
|
1,830 |
|
|
|
14,886 |
|
|
|
10,740 |
|
|
|
12,670 |
|
Loss on extinguishment of debt (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,786 |
|
Asset impairment (c) |
|
2,949 |
|
|
|
1,088 |
|
|
|
1,506 |
|
|
|
4,427 |
|
|
|
22,004 |
|
|
|
8,894 |
|
Litigation settlement (d) |
|
1,500 |
|
|
|
— |
|
|
|
— |
|
|
|
1,500 |
|
|
|
4,395 |
|
|
|
— |
|
Secondary offering expenses (e) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
401 |
|
Management realignment expenses (f) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,155 |
|
Long-term incentive plan (g) |
|
— |
|
|
|
— |
|
|
|
941 |
|
|
|
— |
|
|
|
— |
|
|
|
2,830 |
|
Amortization of acquisition intangibles (h) |
|
1,872 |
|
|
|
1,872 |
|
|
|
1,852 |
|
|
|
7,488 |
|
|
|
7,426 |
|
|
|
7,405 |
|
Other (k) |
|
1,474 |
|
|
|
506 |
|
|
|
1,999 |
|
|
|
1,511 |
|
|
|
2,576 |
|
|
|
6,370 |
|
Adjusted Operating Income |
$ |
16,764 |
|
|
$ |
62,766 |
|
|
$ |
16,489 |
|
|
$ |
204,749 |
|
|
$ |
134,148 |
|
|
$ |
114,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income margin |
|
1.3 |
% |
|
|
7.1 |
% |
|
|
1.0 |
% |
|
|
6.2 |
% |
|
|
2.1 |
% |
|
|
1.9 |
% |
Adjusted Operating Margin |
|
3.5 |
% |
|
|
12.6 |
% |
|
|
4.1 |
% |
|
|
9.8 |
% |
|
|
7.8 |
% |
|
|
6.6 |
% |
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
|
|||||||||||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA to Net Income
In thousands |
Three
|
|
Three
|
|
Three
|
|
Fiscal Year
|
|
Fiscal Year
|
|
Fiscal Year
|
||||||||||||
Net income |
$ |
6,219 |
|
|
$ |
35,078 |
|
|
$ |
3,920 |
|
|
$ |
128,244 |
|
|
$ |
36,277 |
|
|
$ |
32,798 |
|
Interest expense |
|
3,351 |
|
|
|
12,759 |
|
|
|
7,397 |
|
|
|
25,612 |
|
|
|
48,327 |
|
|
|
33,300 |
|
Income tax provision (benefit) |
|
(1,621 |
) |
|
|
9,058 |
|
|
|
(2,956 |
) |
|
|
21,081 |
|
|
|
2,403 |
|
|
|
(2,309 |
) |
Depreciation and amortization |
|
24,450 |
|
|
|
22,614 |
|
|
|
23,674 |
|
|
|
97,089 |
|
|
|
91,585 |
|
|
|
87,244 |
|
EBITDA |
|
32,399 |
|
|
|
79,509 |
|
|
|
32,035 |
|
|
|
272,026 |
|
|
|
178,592 |
|
|
|
151,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock compensation expense (a) |
|
1,020 |
|
|
|
2,405 |
|
|
|
1,830 |
|
|
|
14,886 |
|
|
|
10,740 |
|
|
|
12,670 |
|
Loss on extinguishment of debt (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,786 |
|
Asset impairment (c) |
|
2,949 |
|
|
|
1,088 |
|
|
|
1,506 |
|
|
|
4,427 |
|
|
|
22,004 |
|
|
|
8,894 |
|
Litigation settlement (d) |
|
1,500 |
|
|
|
— |
|
|
|
— |
|
|
|
1,500 |
|
|
|
4,395 |
|
|
|
— |
|
Secondary offering expenses (e) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
401 |
|
Management realignment expenses (f) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,155 |
|
Long-term incentive plan (g) |
|
— |
|
|
|
— |
|
|
|
941 |
|
|
|
— |
|
|
|
— |
|
|
|
2,830 |
|
Other (k) |
|
1,474 |
|
|
|
506 |
|
|
|
1,999 |
|
|
|
1,511 |
|
|
|
2,576 |
|
|
|
6,370 |
|
Adjusted EBITDA |
$ |
39,342 |
|
|
$ |
83,508 |
|
|
$ |
38,311 |
|
|
$ |
294,350 |
|
|
$ |
218,307 |
|
|
$ |
194,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income margin |
|
1.3 |
% |
|
|
7.1 |
% |
|
|
1.0 |
% |
|
|
6.2 |
% |
|
|
2.1 |
% |
|
|
1.9 |
% |
Adjusted EBITDA Margin |
|
8.2 |
% |
|
|
16.8 |
% |
|
|
9.5 |
% |
|
|
14.2 |
% |
|
|
12.8 |
% |
|
|
11.3 |
% |
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
|
|||||||||||||||||||||||
Reconciliation of Adjusted Diluted EPS to Diluted EPS |
|||||||||||||||||||||||
Shares in thousands, except per share
|
Three
|
|
Three
|
|
Three
|
|
Fiscal Year
|
|
Fiscal Year
|
|
Fiscal Year
|
||||||||||||
Diluted EPS |
$ |
0.07 |
|
|
$ |
0.42 |
|
|
$ |
0.05 |
|
|
$ |
1.43 |
|
|
$ |
0.44 |
|
|
$ |
0.40 |
|
Stock compensation expense (a) |
|
0.01 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.15 |
|
|
|
0.13 |
|
|
|
0.16 |
|
Loss on extinguishment of debt (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.12 |
|
Asset impairment (c) |
|
0.04 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.27 |
|
|
|
0.11 |
|
Litigation settlement (d) |
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
— |
|
Secondary offering expenses (e) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
Management realignment expenses (f) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Long-term incentive plan (g) |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Amortization of acquisition intangibles (h) |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.09 |
|
|
|
0.09 |
|
Amortization of debt discounts and
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.02 |
|
|
|
0.14 |
|
|
|
0.02 |
|
Losses (gains) on change in fair value of
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
0.05 |
|
|
|
— |
|
Other (o) |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.03 |
|
|
|
0.08 |
|
Tax benefit of stock option exercises (l) |
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.15 |
) |
|
|
(0.10 |
) |
|
|
(0.12 |
) |
Tax effect of total adjustments (m) |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.08 |
) |
|
|
(0.19 |
) |
|
|
(0.16 |
) |
Adjusted Diluted EPS |
$ |
0.13 |
|
|
$ |
0.45 |
|
|
$ |
0.09 |
|
|
$ |
1.48 |
|
|
$ |
0.91 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average diluted shares
|
|
83,064 |
|
|
|
95,925 |
|
|
|
81,785 |
|
|
|
96,134 |
|
|
|
82,793 |
|
|
|
81,683 |
|
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
|
|||||||||||||||||||||||
Reconciliation of Adjusted SG&A and Adjusted SG&A Percent of Net Revenue to SG&A |
|||||||||||||||||||||||
In thousands |
Three
|
|
Three
|
|
Three
|
|
Fiscal Year
|
|
Fiscal Year
|
|
Fiscal Year
|
||||||||||||
SG&A |
$ |
224,756 |
|
|
$ |
199,750 |
|
|
$ |
178,044 |
|
|
$ |
900,798 |
|
|
$ |
724,985 |
|
|
$ |
744,488 |
|
Stock compensation expense (a) |
|
1,020 |
|
|
|
2,405 |
|
|
|
1,830 |
|
|
|
14,886 |
|
|
|
10,740 |
|
|
|
12,670 |
|
Litigation settlement (d) |
|
1,500 |
|
|
|
— |
|
|
|
— |
|
|
|
1,500 |
|
|
|
4,395 |
|
|
|
— |
|
Secondary offering expenses (e) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
401 |
|
Management realignment expenses (f) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,155 |
|
Long-term incentive plan (g) |
|
— |
|
|
|
— |
|
|
|
941 |
|
|
|
— |
|
|
|
— |
|
|
|
2,830 |
|
Other (n) |
|
1,476 |
|
|
|
506 |
|
|
|
1,432 |
|
|
|
3,867 |
|
|
|
2,576 |
|
|
|
4,565 |
|
Adjusted SG&A |
$ |
220,760 |
|
|
$ |
196,839 |
|
|
$ |
173,841 |
|
|
$ |
880,545 |
|
|
$ |
707,274 |
|
|
$ |
721,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A Percent of Net Revenue |
|
47.0 |
% |
|
|
40.2 |
% |
|
|
44.3 |
% |
|
|
43.3 |
% |
|
|
42.4 |
% |
|
|
43.2 |
% |
Adjusted SG&A Percent of Net
|
|
46.2 |
% |
|
|
39.6 |
% |
|
|
43.3 |
% |
|
|
42.3 |
% |
|
|
41.3 |
% |
|
|
41.9 |
% |
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
|
|||||||||||||||||||||||
(a) |
Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and performance vesting conditions. |
|
(b) |
Reflects write-off of deferred financing fees related to the extinguishment of debt. |
|
(c) |
Reflects write-off of primarily property, equipment and lease-related assets on closed or underperforming stores. |
|
(d) |
Expenses associated with settlement of certain litigation. |
|
(e) |
Expenses related to our secondary public offerings. |
|
(f) |
Expenses related to a non-recurring management realignment described on Form 8-K filed with the |
|
(g) |
Expenses pursuant to a long-term incentive plan for non-executive associates who were not participants in the management equity plan. This plan was effective in 2014 following the acquisition of the Company by affiliates of KKR & Co. Inc. (the “KKR Acquisition”). |
|
(h) |
Amortization of the increase in carrying values of finite-lived intangible assets resulting from the application of purchase accounting to the KKR Acquisition. |
|
(i) |
Amortization of deferred financing costs and other non-cash charges related to our long-term debt, including amortization of the conversion feature related to the 2025 Notes of |
|
(j) |
Reflects losses (gains) recognized in interest expense on change in fair value of de-designated hedges of |
|
(k) |
Other adjustments include amounts that management believes are not representative of our operating performance (amounts in brackets represent reductions in Adjusted Operating Income, Adjusted Diluted EPS and Adjusted EBITDA) including our share of (gains) losses on equity method investments of |
|
(l) |
Tax benefit associated with accounting guidance requiring excess tax benefits related to stock option exercises to be recorded in earnings as discrete items in the reporting period in which they occur. |
|
(m) |
Represents the income tax effect of the total adjustments at our combined statutory federal and state income tax rates. |
|
(n)
|
Reflects other expenses in (k) above, except for our share of (gains) losses on equity method investments of |
|
(o) |
Reflects other expenses in (k) above, including the impact of stranded tax effect of |
Reconciliation of Adjusted Comparable Store Sales Growth to Total Comparable Store Sales Growth |
|||||||||||||
|
Comparable store sales growth (a) |
||||||||||||
|
Fourth Quarter |
|
Year to Date |
|
|
||||||||
|
2021 vs.
|
|
2021 vs.
|
|
2021 vs.
|
|
2021 vs.
|
|
2022
|
||||
Owned & Host segment |
|
|
|
|
|
|
|
|
|
||||
America’s Best |
12.6 |
% |
|
1.1 |
% |
|
16.0 |
% |
|
23.5 |
% |
|
|
|
21.0 |
% |
|
2.3 |
% |
|
21.8 |
% |
|
25.2 |
% |
|
|
Military |
(3.2 |
) % |
|
(3.8 |
) % |
|
(2.5 |
) % |
|
15.8 |
% |
|
|
Fred Meyer |
(17.2 |
) % |
|
(6.6 |
) % |
|
(11.5 |
) % |
|
13.4 |
% |
|
|
Legacy segment |
1.0 |
% |
|
2.1 |
% |
|
4.4 |
% |
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total comparable store sales growth |
13.8 |
% |
|
1.7 |
% |
|
15.1 |
% |
|
22.4 |
% |
|
( |
Adjusted Comparable Store Sales Growth (b) |
11.5 |
% |
|
1.2 |
% |
|
14.7 |
% |
|
23.0 |
% |
|
( |
|
|
|
|
|
|
|
|
|
|
||||
Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.
|
|||||||||||||
(a) |
Total comparable store sales is calculated based on consolidated net revenue excluding the impact of (i) Corporate/Other segment net revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month, and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth is calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 14. “Segment Reporting” in our consolidated financial statements, with the exception of the Legacy segment, which is adjusted as noted in (b) (ii) below. |
|
|
(b) |
There are two differences between total comparable store sales growth based on consolidated net revenue and Adjusted Comparable Store Sales Growth: (i) Adjusted Comparable Store Sales Growth includes the effect of deferred and unearned revenue as if such revenues were earned at the point of sale, resulting in the following changes from total comparable store sales growth based on consolidated net revenue: a decrease of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220228005332/en/
Investors:
(470) 448-2448
investor.relations@nationalvision.com
Media:
(470) 448-2303
media@nationalvision.com
Source:
FAQ
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