Purple Innovation Reports Record Fourth Quarter and Full Year 2020 Results
Purple Innovation, Inc. (NASDAQ: PRPL) reported strong fourth quarter and full year 2020 results. Fourth quarter net revenue rose 39.9% to $173.9 million, driven by a 57% increase in Direct-to-Consumer (DTC) sales. Gross margin was 47.2%, slightly down from 47.7%. Operating income surged 171.1% to $7.5 million, while the net loss narrowed to $(2.1) million. For the full year, revenue climbed 51.4% to $648.5 million, with adjusted net income at $49.6 million. The company expects 2021 revenue between $840 to $880 million.
- Fourth quarter net revenue increased 39.9% to $173.9 million.
- Direct-to-Consumer revenue rose 57%, contributing to growth.
- Operating income jumped 171.1% to $7.5 million.
- Full year net revenue increased 51.4% to $648.5 million.
- Adjusted net income for 2020 was $49.6 million, or $0.78 per diluted share.
- Net cash from operations increased to $81.3 million.
- Gross margin decreased slightly from 47.7% to 47.2% due to startup costs.
- Net loss was $(2.1) million for Q4 despite improved performance.
LEHI, Utah, March 4, 2021 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known for creating the "World's First No Pressure ™ Mattress," today announced results for the fourth quarter and year ended December 31, 2020.
Fourth Quarter Financial Summary (Comparisons versus Fourth Quarter 2019)1
- Net revenue increased
39.9% to$173.9 million as compared to$124.3 million . - Direct-to-Consumer (DTC) revenue increased
57% ; Wholesale revenue increased9% - Gross margin was
47.2% compared to47.7% . - Operating expenses as a percent of net revenue were
42.9% as compared to45.4% . - Operating income increased
171.1% to$7.5 million as compared to$2.8 million . - Net loss was
$(2.1) million as compared to a net loss of$(12.7) million . Adjusted net income was$5.0 million , or$0.07 per diluted share as compared to$1.2 million , or$0.02 per diluted share. - EBITDA was
$(7.7) million as compared to$(9.3) million . Adjusted EBITDA was$12.2 million compared to$5.8 million .
Full Year 2020 Financial Summary (Comparisons versus Full Year 2019)1
- Net revenue increased
51.4% to$648.5 million as compared to$428.4 million . - Direct-to-Consumer (DTC) revenue increased
83% ; Wholesale revenue increased slightly, reflecting COVID-19 related retail partner store closures. - Gross margin increased 290 basis points to
47.0% as compared to44.1% . - Operating expenses as a percent of net revenue improved to
36.1% as compared to40.3% . - Operating income increased
339.3% to$71.2 million as compared to$16.2 million . - Net income was
$10.9 million as compared to a net loss of$(12.4) million . Adjusted net income was$49.6 million , or$0.78 per diluted share as compared to$8.6 million , or$0.16 per diluted share. - EBITDA was
$(20.2) million as compared to$(3.0) million . Adjusted EBITDA was$88.1 million compared to$33.4 million . - Net cash provided by operating activities increased to
$81.3 million as compared to$22.9 million . - Ended the year with cash and cash equivalents of
$123.0 million , an increase of$89.5M throughout the year.
"We concluded an amazing year of profitable growth for Purple with a strong fourth quarter performance," said Joe Megibow, Chief Executive Officer. "Despite the many challenges in 2020, our teams leaned-in and executed successfully, including this holiday season, identifying and capitalizing on market opportunities while at the same time investing in future growth. With our coveted and innovative products, internal manufacturing capabilities, and omni-channel distribution strategy combined with effective marketing and promotional programs, we have doubled our share of the U.S. premium mattress market over the past two years. Fiscal 2021 is off to a solid start and we believe we are well positioned to build on our recent accomplishments and intend to continue investing in capacity expansion, innovation and company showrooms to further expand our market share for years to come."
1 | Reconciliations for non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the "RECONCILIATION OF GAAP TO NON-GAAP MEASURES" tables at the end of this press release. |
Fourth Quarter 2020 Review
Fourth quarter 2020 net revenue increased
Gross margin for the fourth quarter 2020 was
Operating expenses were
Operating income increased
Net loss was
EBITDA for the fourth quarter 2020 was
Full Year 2020 Review
Full year 2020 net revenue increased
Gross margin for the full year 2020 was
Operating expenses were
Operating income increased
Net income for 2020 was
EBITDA for 2020 was
Balance Sheet
As of December 31, 2020, the Company had cash and cash equivalents of
Inventories as of December 31, 2020 totaled
2021 Outlook
For 2021, the Company currently expects full year revenue to be in the range of
The company expects capital expenditures for 2021 to be in the range of
For the first quarter of 2021, the Company currently expects revenue to be in the range of
In the second quarter last year, the Company saw significant wholesale decline as the result of COVID required wholesale door closures and saw a corresponding
For the balance of the year, the Company expects revenue growth to be driven by both its wholesale and DTC channels, with wholesale delivering a higher growth rate as it realizes the benefit of new door expansion while DTC growth will be fueled by investments in e-commerce and marketing capabilities as well as significant showroom expansion. Based on its current outlook, the Company expects to achieve modest improvement in adjusted EBITDA over the comparable prior year period as it leverages costs associated with its Georgia facility and other operating expenses on higher revenue, partially offset by the continued channel shift to wholesale.
Conference Call and Webcast Information
Purple Innovation, Inc. will host a live conference call to discuss financial results today, March 4, 2021 at 8:30 a.m. Eastern Time. To access the call dial 877-425-9470 (domestic) or 201-389-0878 (international) and provide the Conference ID: 13716791. The call is also being webcast and can be accessed on the investor relations section of the Company's website, investors.purple.com. After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for 30 days.
About Purple
Purple is a digitally-native vertical brand with a mission to help people feel and live better through innovative comfort solutions. We design and manufacture a variety of innovative, premium, branded comfort products, including mattresses, pillows, cushions, frames, sheets and more. Our products are the result of over 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors' products. We market and sell our products through our direct-to-consumer online channels, traditional retail partners, third-party online retailers and our owned retail showrooms. For more information on Purple, visit purple.com.
Forward Looking Statements
Certain statements made in this release that are not historical facts are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements include but are not limited to statements relating to our expected continuing expansion of market share from investment in capacity, innovation and showrooms, expected future growth of revenue and earnings and anticipated growth rates, demand for our products, operating expense leverage, changes in channel mix, extent of increased costs, pressure on gross margins, changes in EBITDA margins, changes in consumer behavior, our ability to expand our wholesale operations, the impact of our new manufacturing facility on our business, and expected financial and operating results for the first and second quarter and full year 2021. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could influence the realization of forward-looking statements include, among others: uncertainties regarding the extent and duration of the impact of the COVID-19 pandemic on many aspects of our business, operations and financial performance; changes in economic, financial and end-market conditions in the markets in which we operate; fluctuations in raw material prices; the financial condition of our customers and suppliers; competitive pressures, including the need for technology improvement, successful new product development and introduction; and the risk factors outlined in the "Risk Factors" section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2020 and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission on May 11, 2020, August 13, 2020, and November 10, 2020. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
EBITDA, adjusted EBITDA, adjusted net income, and adjusted net income per diluted share are non-GAAP financial measures that remove the impact of certain non-cash and non-recurring costs. Management believes that the use of such non-GAAP financial measures provides investors with additional useful information with respect to the impact of various adjustments, which we view as a better measure of our operating performance. Refer to the attached table for the reconciliation of such non-GAAP financial measures to the most comparable GAAP financial measure.
With respect to the Company's Adjusted EBITDA outlook for the first quarter and full year 2021, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
Investor Contact:
Brendon Frey, ICR
brendon.frey@icrinc.com
203-682-8200
Purple Innovation, Inc.
Misty Bond
Director of Purple Communications
misty.b@purple.com
385-498-1851
PURPLE INNOVATION, INC. | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 122,955 | $ | 33,478 | ||||
Accounts receivable, net | 29,111 | 28,692 | ||||||
Inventories, net | 65,726 | 47,628 | ||||||
Prepaid inventory | 826 | 879 | ||||||
Other current assets | 10,453 | 3,442 | ||||||
Total current assets | 229,071 | 114,119 | ||||||
Property and equipment, net | 61,486 | 31,979 | ||||||
Operating lease right-of-use assets | 41,408 | — | ||||||
Intangible assets, net | 9,945 | 1,101 | ||||||
Deferred income taxes | 211,244 | — | ||||||
Other long-term assets | 1,578 | 525 | ||||||
Total assets | $ | 554,732 | $ | 147,724 | ||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 69,594 | $ | 50,240 | ||||
Accrued sales returns | 8,428 | 7,271 | ||||||
Accrued compensation | 14,209 | 7,954 | ||||||
Customer prepayments | 6,253 | 6,258 | ||||||
Accrued sales tax | 6,015 | 5,602 | ||||||
Accrued rebates and allowances | 10,891 | 5,311 | ||||||
Operating lease obligations – current portion | 3,235 | — | ||||||
Other current liabilities | 13,583 | 4,229 | ||||||
Total current liabilities | 132,208 | 86,865 | ||||||
Debt, net of current portion | 41,410 | 35,399 | ||||||
Operating lease obligations, net of current portion | 48,936 | — | ||||||
Warrant liabilities | — | 21,622 | ||||||
Tax receivable agreement liability | 165,426 | — | ||||||
Other long-term liabilities, net of current portion | 6,503 | 8,570 | ||||||
Total liabilities | 394,483 | 152,456 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity (deficit): | ||||||||
Class A common stock; | 6 | 2 | ||||||
Class B common stock; | — | 3 | ||||||
Additional paid-in capital | 164,460 | 5,990 | ||||||
Accumulated deficit | (4,561) | (8,349) | ||||||
Total stockholders' equity (deficit) | 159,905 | (2,354) | ||||||
Noncontrolling interest | 344 | (2,378) | ||||||
Total stockholders' equity (deficit) | 160,249 | (4,732) | ||||||
Total liabilities and stockholders' equity (deficit) | $ | 554,732 | $ | 147,724 |
PURPLE INNOVATION, INC. | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues, net | $ | 173,889 | $ | 124,300 | $ | 648,471 | $ | 428,358 | ||||||||
Cost of revenues | 91,859 | 65,064 | 343,374 | 239,387 | ||||||||||||
Gross profit | 82,030 | 59,236 | 305,097 | 188,971 | ||||||||||||
Operating expenses: | ||||||||||||||||
Marketing and sales | 60,678 | 47,936 | 187,991 | 141,975 | ||||||||||||
General and administrative | 12,613 | 7,675 | 39,925 | 26,918 | ||||||||||||
Research and development | 1,243 | 860 | 5,955 | 3,864 | ||||||||||||
Total operating expenses | 74,534 | 56,471 | 233,871 | 172,757 | ||||||||||||
Operating income | 7,496 | 2,765 | 71,226 | 16,214 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (609) | (1,379) | (4,654) | (5,180) | ||||||||||||
Other income (expense), net | (200) | 172 | (91) | 545 | ||||||||||||
Loss on extinguishment of debt | — | — | (5,782) | (6,299) | ||||||||||||
Change in fair value – warrant liabilities | (16,110) | (13,386) | (59,418) | (16,758) | ||||||||||||
Tax receivable agreement expense | (643) | (501) | (34,155) | (501) | ||||||||||||
Total other expense, net | (17,562) | (15,094) | (104,100) | (28,193) | ||||||||||||
Net loss before income taxes | (10,066) | (12,329) | (32,874) | (11,979) | ||||||||||||
Income tax benefit (expense) | 7,931 | (400) | 43,749 | (400) | ||||||||||||
Net income (loss) | (2,135) | (12,729) | 10,875 | (12,379) | ||||||||||||
Net income (loss) attributable to noncontrolling interest | (91) | (8,576) | 7,087 | (8,352) | ||||||||||||
Net income (loss) attributable to Purple Innovation, Inc. | $ | (2,044) | $ | (4,153) | $ | 3,788 | $ | (4,027) | ||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | (0.03) | $ | (0.29) | $ | 0.10 | $ | (0.40) | ||||||||
Diluted | $ | (0.03) | $ | (0.29) | $ | 0.08 | $ | (0.40) | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 60,372 | 14,242 | 39,219 | 10,006 | ||||||||||||
Diluted | 60,372 | 14,242 | 44,706 | 10,006 |
PURPLE INNOVATION, INC. | ||||||||||||||||
Three Months Ended | Year Ended December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | (2,135) | $ | (12,729) | $ | 10,875 | $ | (12,379) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 1,533 | 1,816 | 7,899 | 4,308 | ||||||||||||
Non-cash interest | 132 | 874 | 3,105 | 3,313 | ||||||||||||
Paid-in-kind interest | — | — | (6,616) | — | ||||||||||||
Loss on extinguishment of debt | — | — | 5,782 | 6,299 | ||||||||||||
Loss on change in fair value - warrant liabilities | 16,110 | 13,386 | 59,418 | 16,758 | ||||||||||||
Tax receivable agreement expense | 643 | 501 | 34,155 | 501 | ||||||||||||
Stock-based compensation | 626 | 323 | 2,185 | 10,063 | ||||||||||||
Non-cash lease expense | 3,128 | — | 3,128 | — | ||||||||||||
Deferred income taxes | (9,994) | — | (45,812) | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (7,217) | (2,005) | (419) | (18,451) | ||||||||||||
Inventories | (14,951) | (12,810) | (18,098) | (24,688) | ||||||||||||
Prepaid inventory and other assets | 693 | 378 | (5,047) | (2,557) | ||||||||||||
Accounts payable | 6,371 | 14,030 | 16,049 | 25,132 | ||||||||||||
Accrued sales returns | (1,857) | 1,977 | 1,157 | 1,814 | ||||||||||||
Accrued compensation | 1,694 | 2,433 | 6,255 | 5,263 | ||||||||||||
Customer prepayments | 46 | (1,434) | (5) | (1,264) | ||||||||||||
Operating lease obligations | (1,732) | — | (1,732) | — | ||||||||||||
Other accrued liabilities | 767 | 321 | 8,978 | 8,768 | ||||||||||||
Net cash provided by (used in) operating activities | (6,143) | 7,061 | 81,257 | 22,880 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (13,684) | (4,802) | (27,878) | (10,459) | ||||||||||||
Investment in intangible assets | (371) | (74) | (11,261) | (320) | ||||||||||||
Net cash used in investing activities | (14,055) | (4,876) | (39,139) | (10,779) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from related-party loan | — | — | — | 10,000 | ||||||||||||
Proceeds from term loan | — | — | 45,000 | — | ||||||||||||
Payments on related-party loan | — | — | (37,497) | — | ||||||||||||
Payments on term loan | (563) | — | (563) | — | ||||||||||||
Proceeds from exercise of warrants | 44,235 | — | 46,359 | — | ||||||||||||
Proceeds from exercise of stock options | 2,007 | — | 2,007 | — | ||||||||||||
Repurchase of stock options | — | — | — | (97) | ||||||||||||
Payments for debt issuance costs | — | — | (2,460) | (758) | ||||||||||||
Distributions to members | (481) | — | (5,487) | — | ||||||||||||
Net cash provided by financing activities | 45,198 | — | 47,359 | 9,145 | ||||||||||||
Net increase in cash | 25,000 | 2,185 | 89,477 | 21,246 | ||||||||||||
Cash and cash equivalents, beginning of the year | 97,955 | 31,293 | 33,478 | 12,232 | ||||||||||||
Cash and cash equivalents, end of the year | $ | 122,955 | $ | 33,478 | $ | 122,955 | $ | 33,478 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid during the period for interest | $ | 7,213 | $ | 505 | $ | 8,167 | $ | 1,869 | ||||||||
Cash paid during the period for income taxes | $ | — | $ | — | $ | 2,060 | $ | 122 | ||||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||
Property and equipment included in accounts payable | $ | 519 | $ | 588 | $ | 3,305 | $ | 743 | ||||||||
Issuance of liability warrants | $ | — | $ | — | $ | — | $ | 4,864 | ||||||||
Non-cash leasehold improvements | $ | 4,532 | $ | 1,938 | $ | 5,147 | $ | 1,938 | ||||||||
Tax distribution payable | $ | 668 | $ | 308 | $ | 668 | $ | 308 | ||||||||
Tax Receivable Agreement liability | $ | 2,371 | $ | — | $ | 137,314 | $ | — | ||||||||
Deferred income taxes | $ | (3,630) | $ | — | $ | 165,676 | $ | — | ||||||||
Exercise of liability warrants | $ | 81,040 | $ | — | $ | 81,040 | $ | — |
PURPLE INNOVATION, INC. | ||||||||||||||||
Management believes that the use of the following non-GAAP financial measures provides investors with additional useful information with respect to the impact of various adjustments, which we view as a better measure of our operating performance. These non-GAAP financial measures are EBITDA, adjusted EBITDA, adjusted net income, and adjusted net income per diluted share. Other companies may calculate these non-GAAP measures differently than we do. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for our financial results prepared in accordance with GAAP. | ||||||||||||||||
Reconciliation of GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA | ||||||||||||||||
A reconciliation of GAAP net income (loss) to the non-GAAP measures of EBITDA and adjusted EBITDA is provided below. EBITDA represents net income (loss) income before interest expense, other (income) expense, net, and depreciation and amortization. Adjusted EBITDA represents EBITDA excluding costs incurred due to stock-based compensation expense, debt extinguishment, warrant liability, nonrecurring legal fees, interim CFO and consulting fees and severance costs. We believe EBITDA and Adjusted EBITDA provide additional useful information with respect to the impact of various adjustments and provide meaningful measures of our operating performance. | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
GAAP net income (loss) | $ | (2,135) | (12,729) | 10,875 | (12,379) | |||||||||||
Interest expense | 609 | 1,379 | 4,654 | 5,180 | ||||||||||||
Income tax (benefit) expense | (7,931) | 400 | (43,749) | 400 | ||||||||||||
Other (income) expense, net | 200 | (172) | 91 | (545) | ||||||||||||
Depreciation and amortization | 1,533 | 1,816 | 7,899 | 4,308 | ||||||||||||
EBITDA | (7,724) | (9,306) | (20,230) | (3,036) | ||||||||||||
Adjustments: | ||||||||||||||||
Debt extinguishment and warrant liability | 16,110 | 13,386 | 65,200 | 23,057 | ||||||||||||
Stock-based compensation expense | 626 | 323 | 2,185 | 10,063 | ||||||||||||
Product reserve | — | — | 500 | — | ||||||||||||
Tax Receivable Agreement expense | 643 | 501 | 34,155 | 501 | ||||||||||||
Legal fees | 488 | 390 | 1,544 | 809 | ||||||||||||
Interim CFO and consulting | — | 30 | — | 706 | ||||||||||||
Severance costs | 196 | 30 | 329 | 730 | ||||||||||||
Vendor impairment | — | — | 1,660 | — | ||||||||||||
Intangible asset adjustment | — | 404 | — | 404 | ||||||||||||
Previous period sales tax liability | 322 | — | 1,011 | 200 | ||||||||||||
Showroom opening costs | 222 | — | 222 | — | ||||||||||||
New production facility start-up costs | 1,237 | — | 1,237 | — | ||||||||||||
COVID-19 related expenses | 104 | — | 311 | — | ||||||||||||
Adjusted EBITDA | $ | 12,224 | $ | 5,758 | $ | 88,124 | $ | 33,434 |
Reconciliation of GAAP Net Income to non-GAAP Adjusted Net Income and Adjusted Net Income per Diluted Share | ||||||||||||||||
Our presentation of adjusted net income assumes that all net income is attributable to Purple Innovation, Inc. (i.e. there is no allocation of net income or loss to noncontrolling interests), which assumes the full exchange at the beginning of the period of all outstanding Paired Securities for shares of Class A common stock of Purple Innovation, Inc., adjusted for certain nonrecurring items that we do not believe directly reflect our core operations. Adjusted net income per share, diluted, is calculated by dividing adjusted net income by the total shares of Class A common stock outstanding plus any dilutive warrants, options and restricted stock as calculated in accordance with GAAP and assuming the full exchange of all outstanding Paired Securities as of the beginning of each period presented. Adjusted net income and adjusted net income per diluted share, are supplemental measures of operating performance that do not represent, and should not be considered, alternatives to net income and earnings per share, as calculated in accordance with GAAP. We believe adjusted net income and adjusted net income per diluted share, supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of net income (loss), the most directly comparable GAAP measure, to adjusted net income and the computation of adjusted net income per diluted share, are set forth below: | ||||||||||||||||
(in thousands, except per share amounts) | Three Months Ended | Year Ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | (2,135) | $ | (12,729) | $ | 10,875 | $ | (12,379) | ||||||||
Income tax (benefit) expense, as reported | (7,931) | 400 | (43,749) | 400 | ||||||||||||
Loss on extinguishment of debt | — | — | 5,782 | 6,299 | ||||||||||||
Tax receivable agreement expense | 643 | 501 | 34,155 | 501 | ||||||||||||
Change in fair value – warrant liabilities | 16,110 | 13,386 | 59,418 | 16,758 | ||||||||||||
Adjusted net income before income taxes | 6,687 | 1,558 | 66,481 | 11,579 | ||||||||||||
Adjusted income taxes(1) | (1,698) | (399) | (16,886) | (2,964) | ||||||||||||
Adjusted net income | $ | 4,989 | $ | 1,159 | $ | 49,595 | $ | 8,615 | ||||||||
Adjusted net income per share, diluted | $ | 0.07 | $ | 0.02 | $ | 0.78 | $ | 0.16 | ||||||||
Adjusted weighted-average shares outstanding, diluted(2) | 68,582 | 55,453 | 63,572 | 54,977 |
(1) | Represents the estimated effective tax rate of |
(2) | Assumes dilutive warrants, options and restricted stock calculated in accordance with GAAP and the full exchange of all outstanding Paired Securities for shares of Class A common stock as of the beginning of the period. |
A reconciliation of net income (loss) per share, diluted, to adjusted net income per diluted share is set forth below for the three months and year ended December 31, 2020 and 2019: | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Net Income | Weighted Average | Net Income per | Net | Weighted Average Shares, Diluted | Net Income per Share, Diluted | |||||||||||||||||||
Net income (loss) attributable to Purple Innovation Inc.(1) | $ | (2,044) | 60,372 | $ | (0.03) | $ | (4,153) | 14,242 | $ | (0.29) | ||||||||||||||
Assumed exchange of shares(2) | (91) | 574 | (8,576) | 38,263 | ||||||||||||||||||||
Net income (loss) | (2,135) | (12,729) | ||||||||||||||||||||||
Adjustments to arrive at adjusted income before taxes(3) | 8,822 | 7,636 | 14,287 | 2,948 | ||||||||||||||||||||
Adjusted income before taxes | 6,687 | 1,558 | ||||||||||||||||||||||
Adjusted income taxes(4) | (1,698) | (399) | ||||||||||||||||||||||
Adjusted net income | $ | 4,989 | 68,582 | $ | 0.07 | $ | 1,159 | 55,453 | $ | 0.02 | ||||||||||||||
For the Year Ended | ||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Net Income | Weighted Average Shares, Diluted | Net Income per | Net | Weighted Average Shares, Diluted | Net Income per Share, Diluted | |||||||||||||||||||
Net income attributable to Purple Innovation Inc.(1) | $ | 3,788 | 44,706 | $ | 0.08 | $ | (4,027) | 10,006 | $ | (0.40) | ||||||||||||||
Assumed exchange of shares(2) | 7,087 | 16,253 | (8,352) | 42,512 | ||||||||||||||||||||
Net income (loss) | 10,875 | (12,379) | ||||||||||||||||||||||
Adjustments to arrive at adjusted income before taxes(3) | 55,606 | 2,613 | 23,958 | 2,459 | ||||||||||||||||||||
Adjusted income before taxes | 66,481 | 11,579 | ||||||||||||||||||||||
Adjusted income taxes(4) | (16,886) | (2,964) | ||||||||||||||||||||||
Adjusted net income | $ | 49,595 | 63,572 | $ | 0.78 | $ | 8,615 | 54,977 | $ | 0.16 |
(1) | Represents net income attributable to Purple Innovation, Inc. and the associated weighted average diluted shares, of Class A common stock outstanding. |
(2) | Assumes the full exchange of all outstanding Paired Securities for shares of Class A common stock as of the beginning of the period. Also assumes the addition of net income attributable to noncontrolling interests corresponding with the assumed exchange of the Paired Securities for shares of Class A common stock. |
(3) | Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes. Also assumes the dilutive warrants, options and restricted stock as calculated in accordance with GAAP. |
(4) | Represents the estimated effective tax rate of |
View original content:http://www.prnewswire.com/news-releases/purple-innovation-reports-record-fourth-quarter-and-full-year-2020-results-301240381.html
SOURCE Purple Innovation, Inc.
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