YETI Reports Fourth Quarter and Fiscal Year 2023 Results
- None.
- None.
Insights
The financial results of YETI Holdings, Inc. indicate a mixed performance with some segments like Drinkware and International sales showing robust growth, while the Coolers & Equipment category experienced a cautious consumer spending pattern. The increase in net sales and gross margins, especially with Drinkware surpassing $1 billion in annual sales, is a testament to the company's successful product innovation and market penetration strategies. However, the decline in Adjusted EPS suggests that there are cost pressures or other factors affecting profitability.
The strategic acquisitions mentioned, one in the bags and packs product family and another in cookware, signify YETI's intent to diversify its product portfolio and enter new market segments. These acquisitions could potentially open up new revenue streams and help mitigate risks associated with reliance on a limited range of products. The $300 million share repurchase program demonstrates confidence in the company's financial health and a commitment to returning value to shareholders, which could be a positive signal to the market.
Looking ahead, YETI's focus on product innovation and geographic expansion, coupled with a strong balance sheet, positions it well for sustainable growth. However, the cautious outlook for 2024 acknowledges the volatile market conditions and implies a conservative approach to forecasting future performance.
The reported increase in cash to $439 million and the decrease in total debt reflect a solid financial position for YETI, providing them with the flexibility to invest in growth initiatives and weather economic uncertainties. The growth in direct-to-consumer (DTC) sales is particularly notable, as this channel typically offers higher margins than wholesale. The shift in sales mix towards DTC, along with lower inbound freight costs and lower product costs, has contributed significantly to the expansion of gross margins, which is a positive indicator of operational efficiency and cost management.
However, the decline in adjusted net income and EPS suggests that despite top-line growth and margin expansion, there are underlying challenges impacting the bottom line. Investors will be interested in understanding the drivers behind the increase in SG&A expenses and how they might affect future profitability. The cautious guidance for 2024, with adjusted sales expected to grow between 7% and 9%, reflects the management's anticipation of a challenging macroeconomic environment but still conveys a trajectory of growth.
The mention of non-GAAP financial measures is crucial as it provides an alternative view of the company's performance by excluding certain items such as the impact of voluntary recalls. Investors should be aware that while these measures can offer valuable insights, they are not a substitute for GAAP metrics and should be considered alongside them. The reconciliation of non-GAAP to GAAP measures is important for transparency and allows stakeholders to understand the adjustments made and their significance to the company's financials.
Additionally, the repurchase of common stock is subject to regulatory compliance and corporate governance standards. The Board's authorization demonstrates a strategic capital allocation decision aimed at optimizing shareholder value. It's also indicative of management's belief in the intrinsic value of the company's stock and its long-term growth prospects.
Announces Two Category Expansion Acquisitions & a
Provides Fiscal Year 2024 Outlook
YETI reports its financial performance in accordance with accounting principles generally accepted in
Fourth Quarter 2023 Highlights
-
Fourth quarter net sales increased
16% ; Adjusted net sales increased6% -
Fourth quarter net sales were highlighted by a
12% increase in Drinkware net sales and a44% increase in International net sales; International adjusted net sales increased39% -
Fourth quarter EPS of
$0.90 $0.32 $0.90 15%
Fiscal Year 2023 Highlights
-
Full year net sales increased
4% ; Adjusted net sales increased3% -
Full year EPS increased
88% to$1.94 5% to$2.25 -
Cash increased
87% to$439 million
Matt Reintjes, President and Chief Executive Officer, commented, “In the fourth quarter, we saw strength in a number of key areas of our business. Our Drinkware business grew
Mr. Reintjes continued, “In 2023, we continued to show the strength of our customer base, the success of our product expansion, and the momentum behind our global brand. During the year, we evolved our diverse commercial channels to market through existing and new wholesale partners, continued to make investments in our DTC channels, and further developed our international markets. We delivered a robust lineup of new product innovation while maintaining our focus on durability, performance, and design. Importantly, we broadened and extended the reach of YETI drinkware with new offerings in hydration, coffee, barware and tabletop, which resonated with both new and existing customers. Additionally, we made foundational international investments across brand awareness, logistics, and DTC to support international growth into 2024 and beyond.”
Fourth Quarter 2023 Results
Sales increased
Adjusted sales, which exclude the impacts of the recall reserves in both the current and prior year quarters, increased
Sales and adjusted sales for the fourth quarter of 2023 include
-
Direct-to-consumer (“DTC”) channel sales increased
11% to$344.9 million $309.5 million 9% to$344.1 million -
Wholesale channel sales increased
26% to$174.9 million $138.5 million 1% to$172.9 million -
Drinkware sales increased
12% to$346.0 million $308.2 million -
Coolers & Equipment sales increased
26% to$165.0 million $130.5 million 4% to$162.2 million
Gross profit increased
Adjusted gross profit, which excludes the impacts of the recall reserves in both the current and prior year quarters, increased
Selling, general, and administrative (“SG&A”) expenses increased
Adjusted SG&A expenses, which exclude the impacts related to the recalls and certain other items in both the current and prior year quarters, increased
Operating income was
Adjusted operating income, which excludes the impacts related to the recalls and certain other items in both the current and prior year quarters, increased
Net income, which includes the impacts from the recall reserves, was
Adjusted net income increased
Full Year 2023 Results
Sales increased
Adjusted sales, which exclude the unfavorable impacts of the recall reserves in both the current and prior year quarters, increased
Our 2023 financial results were materially adversely impacted by the stop sale of the soft coolers included in the recalls initiated during the first quarter of 2023. In addition, sales and adjusted net sales for 2023 include
-
DTC channel sales increased
9% to$997.7 million $917.7 million 9% to$1,005.1 million -
Wholesale channel sales decreased
2% to$661.0 million $677.5 million 5% to$675.4 million -
Drinkware sales increased
8% to$1,023.0 million $947.2 million -
Coolers & Equipment sales decreased
2% to$597.5 million $612.5 million 5% to$619.2 million
Gross profit increased
Adjusted gross profit, which excludes the impacts related to the recall reserves in both the current and prior year quarters, increased
SG&A expenses increased
Adjusted SG&A expenses, which exclude the impacts related to the recall reserves and certain other items in both the current and prior year quarters, increased
Operating income increased
Adjusted operating income, which excludes the impacts related to the recalls and certain other items in both the current and prior year quarters, decreased
Net income, which includes the impacts from the recall reserves, increased
Adjusted net income decreased
Balance Sheet and Other Highlights
Cash increased
Inventory decreased
Total debt, excluding finance leases and unamortized deferred financing fees, was
Fiscal 2024 Outlook
Mr. Reintjes commented, “As we shift our focus to 2024 and the opportunities ahead, we are providing our 2024 outlook and updates on our capital allocation initiatives. Thus far in the first quarter of 2024, through two targeted acquisitions, we have added a great addition to our bags and packs product family, and made our first move in cookware with a best in class cast iron offering. These deals illustrate YETI’s strategy to pursue acquisitions as an extension of our product line up while complementing our organic product expansion. Combining the talent and product portfolios of these two deals with YETI’s brand strength, existing product portfolio, product marketing capabilities, and unique omni-channel model, provides an opportunity to accelerate expansion in the bags and cookware families.
Also, as we look to leverage the strength of our balance sheet while maintaining flexibility, our Board of Directors has authorized the repurchase of up to
Given the uncertainties of the current environment, our outlook for 2024 balances a cautious approach with the ongoing opportunities that we see to drive growth through brand, product, and geographic expansion. We expect to see positive reaction to innovation across our entire product portfolio in 2024. Sales are projected to grow across all of our categories, channels, and geographies. We expect both adjusted gross margin and adjusted operating margin expansion, as well as strong earnings per share growth, even as we continue to strategically invest in our teams and our business across the globe. We also expect to remain in a very strong balance sheet position, which gives us flexibility going forward to continue to support future growth and drive shareholder value.”
Mr. Reintjes concluded, “Finally – and most importantly – we enter the year as excited and committed as ever to the strength of the YETI brand, and the long-term sustainable opportunities that we have in front of us to expand our brand to more products, more customers, and more geographies around the globe.”
For Fiscal 2024, YETI expects:
-
Adjusted sales to increase between
7% and9% ; -
Adjusted operating income as a percentage of adjusted sales of approximately
16.0% ; -
An effective tax rate of approximately
25.3% (compared to24.8% in the prior year period); -
Adjusted net income per diluted share between
$2.45 $2.50 9% to11% increase; - Diluted weighted average shares outstanding of approximately 87.4 million; and
-
Capital expenditures of approximately
$60 million
2024 Acquisitions
During the first quarter of 2024, we completed the acquisitions of Mystery Ranch, Ltd. (“Mystery Ranch”), a designer and manufacturer of durable load-bearing backpacks, bags, and pack accessories, and Butter Pat Industries, LLC (“Butter Pat”), a designer and manufacturer of cast iron cookware. The total purchase consideration for both transactions was approximately
2024 Share Repurchase Program
YETI announced today that its Board of Directors has approved a share repurchase program of up to
Repurchases of shares of common stock may be made through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital management needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of its common stock, and such repurchases, if any, may be suspended or discontinued at any time. YETI expects to fund repurchase from YETI’s existing cash position or future cash flow generated from operations.
Product Recall Updates
New and Expanded Hopper M Series Soft Cooler Line
In the fourth quarter of 2023, we introduced our redesigned and improved Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case, and also launched two new sizes with the Hopper M15 Soft Cooler and the Hopper M12 Soft Backpack Cooler. We believe the improved design of the these products adequately addresses the potential safety concerns caused by the magnet-lined closures of the previous-generation products, which were affected by the product recalls.
Product Recall Reserve
In February 2023, we proposed a voluntary recall of our Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case (the “affected products”). As a result, we established reserves for unsalable inventory on-hand and estimated product recall expenses as of December 31, 2022. In connection with the recognition of these reserves, for the fourth quarter and year ended December 31, 2022, we recorded a reduction to net sales for estimated future returns and recall remedies (i.e., estimated gift card elections) of
In March 2023, we initiated voluntary recalls of the affected products. During the second quarter of 2023, we began processing recall returns and claims, and based on such experience and trends, we reevaluated our assumptions and adjusted our estimated recall expense reserve. These trends included higher than anticipated elections to receive gift cards in lieu of product replacement remedies, variations in individual product participation rates, and lower logistics costs than previously estimated. As a result, we updated our initial recall reserve assumptions, which increased the estimated recall expense reserve by
During the fourth quarter of 2023, we experienced lower than anticipated consumer recall participation rates and a further shift to gift card elections in lieu of product replacement remedies. Based on such experience and trends, we again reevaluated our assumptions, which decreased the estimated recall expense reserve by
The reserve for the estimated product recall expenses was
We recorded the following impacts as a result of the recall reserve adjustments and the initial recognition of the recall reserve for the periods presented below. These impacts are excluded from our non-GAAP results:
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 30,
|
|
December
|
|
December 30,
|
|
December
|
||||||||
Increase (decrease) to net sales(1) |
$ |
2,824 |
|
$ |
(38,415 |
) |
|
$ |
(21,700 |
) |
|
$ |
(38,415 |
) |
|
Decrease (increase) to cost of goods sold(2) |
|
1,275 |
|
|
(58,583 |
) |
|
|
8,423 |
|
|
|
(58,583 |
) |
|
Increase (decrease) to gross profit |
|
4,099 |
|
|
(96,998 |
) |
|
|
(13,277 |
) |
|
|
(96,998 |
) |
|
Decrease (increase) to SG&A expenses(3) |
|
833 |
|
|
(31,910 |
) |
|
|
11,382 |
|
|
|
(31,910 |
) |
|
Increase (decrease) to income before income taxes |
$ |
4,932 |
|
$ |
(128,908 |
) |
|
$ |
(1,895 |
) |
|
$ |
(128,908 |
) |
|
_________________________
(1) |
Net sales - For the three months ended December 30, 2023, reflects the impact of a favorable recall reserve adjustment primarily related to lower estimated consumer recall participation rates. For the twelve months ended December 30, 2023, primarily reflects the impact of an unfavorable recall reserve adjustment mainly related to higher estimated future recall gift card elections. For the three and twelve months ended December 31, 2022, reflects a reduction to net sales for estimated future product returns and recall remedies in connection with the recognition of the product recall reserves. These amounts were allocated based on the historical channel sell-in basis of the affected products. |
|
(2) |
Cost of goods sold - For the three and twelve months ended December 30, 2023, reflects the impact of a favorable recall reserve adjustment primarily related to lower estimated costs of future product replacement remedy elections and logistics costs and lower recall-related costs. For the three and twelve months ended December 31, 2022, reflects an increase to cost of goods sold primarily related to inventory write-offs for unsalable inventory on-hand, and estimated costs of future product replacement remedies, and logistics costs in connection with the recognition of the product recall reserves. |
|
(3) |
SG&A expenses - For the three months and twelve months ended December 30, 2023, reflects the impact of favorable recall reserve adjustments primarily related to lower estimated other recall-related costs. For the three and twelve months ended December 31, 2022, reflects an increase to SG&A expenses associated with estimated other recall-related costs in connection with the recognition of the product recall reserves. |
In addition, our 2023 financial results were materially adversely impacted by the stop sale of the affected products initiated during the first quarter of 2023.
Conference Call Details
A conference call to discuss the fourth quarter of 2023 financial results is scheduled for today, February 15, 2024, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 833-816-1399 (international callers, please dial 412-317-0492) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at http://investors.yeti.com. A replay will be available through February 29, 2024 by dialing 844-512-2921 (international callers, 412-317-6671). The accompanying access code for this call is 10185447.
About YETI Holdings, Inc.
Headquartered in
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted net sales, adjusted gross profit, adjusted SG&A expenses, adjusted operating income, adjusted net income, adjusted net income per diluted share as well as adjusted gross profit and adjusted SG&A expenses, adjusted operating income and adjusted net income as a percentage of adjusted net sales. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to measure our profitability and to evaluate our financial performance. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the underlying operating performance of our business and are appropriate to enhance an overall understanding of our financial performance. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below.
YETI does not provide a reconciliation of forward-looking non-GAAP to GAAP financial measures because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliation, including in particular the impact of the voluntary recalls and realized and unrealized foreign currency gains and losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide a forward-looking GAAP financial measures at this time. The amount of these deductions and additions may be material and, therefore, could result in forward-looking GAAP financial measures being materially different or less than forward-looking non-GAAP financial measures. See “Forward-looking statements” below.
Forward-looking statements
This press release contains ‘‘forward-looking statements’’ within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements. Forward-looking statements include statements containing words such as “anticipate,” “assume,” “believe,” “can have,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements made relating to our future expectations relating to our acquisitions of Mystery Ranch and Butter Pat Industries, our plans relating to our share repurchase program, our voluntary recalls, demand and market conditions, pricing conditions, expected sales, gross margin, operating expense and cash flow levels, and our expectations for opportunity, growth, and new products, including those set forth in the quotes from YETI’s President and CEO, and the 2024 financial outlook provided herein, constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: (i) economic conditions or consumer confidence in future economic conditions; (ii) our ability to maintain and strengthen our brand and generate and maintain ongoing demand for our products; (iii) our ability to successfully design, develop and market new products; (iv) our ability to effectively manage our growth; (v) our ability to expand into additional consumer markets, and our success in doing so; (vi) the success of our international expansion plans; (vii) our ability to compete effectively in the outdoor and recreation market and protect our brand; (viii) the level of customer spending for our products, which is sensitive to general economic conditions and other factors; (ix) problems with, or loss of, our third-party contract manufacturers and suppliers, or an inability to obtain raw materials; (x) fluctuations in the cost and availability of raw materials, equipment, labor, and transportation and subsequent manufacturing delays or increased costs; (xi) our ability to accurately forecast demand for our products and our results of operations; (xii) our relationships with our national, regional, and independent retail partners, who account for a significant portion of our sales; (xiii) the impact of natural disasters and failures of our information technology on our operations and the operations of our manufacturing partners; (xiv) our ability to attract and retain skilled personnel and senior management, and to maintain the continued efforts of our management and key employees; (xv) the impact of our indebtedness on our ability to invest in the ongoing needs of our business, and (xvi) our ability to successfully execute our share repurchase program and its impact on stockholder value and the volatility of the price of our common stock. For a more extensive list of factors that could materially affect our results, you should read our filings with the United States Securities and Exchange Commission (the “SEC”), including our Quarterly Report on Form 10-Q for the three months ended September 30, 2023, as such filings may be amended, supplemented or superseded from time to time by other reports YETI files with the SEC.
These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While YETI believes that these assumptions underlying the forward-looking statements are reasonable, YETI cautions that it is very difficult to predict the impact of known factors, and it is impossible for YETI to anticipate all factors that could affect actual results.
The forward-looking statements included here are made only as of the date hereof. YETI undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law. Many of the foregoing risks and uncertainties may be exacerbated by the global business and economic environment, including ongoing geopolitical conflicts. Solely for convenience, certain trademark and service marks referred to in this press release appear without the ® or ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and service marks.
YETI HOLDINGS, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
December 30,
|
|
December 31,
|
|
December 30,
|
|
December 31,
|
|||||||||
Net sales |
$ |
519,793 |
|
|
$ |
447,996 |
|
|
$ |
1,658,713 |
|
|
$ |
1,595,222 |
|
|
Cost of goods sold |
|
204,566 |
|
|
|
280,961 |
|
|
|
715,527 |
|
|
|
831,821 |
|
|
Gross profit |
|
315,227 |
|
|
|
167,035 |
|
|
|
943,186 |
|
|
|
763,401 |
|
|
Selling, general, and administrative expenses |
|
217,075 |
|
|
|
210,777 |
|
|
|
717,728 |
|
|
|
637,040 |
|
|
Operating income (loss) |
|
98,152 |
|
|
|
(43,742 |
) |
|
|
225,458 |
|
|
|
126,361 |
|
|
Interest income (expense), net |
|
668 |
|
|
|
(1,245 |
) |
|
|
(942 |
) |
|
|
(4,466 |
) |
|
Other income (expense), net |
|
4,212 |
|
|
|
6,484 |
|
|
|
1,430 |
|
|
|
(5,718 |
) |
|
Income (loss) before income taxes |
|
103,032 |
|
|
|
(38,503 |
) |
|
|
225,946 |
|
|
|
116,177 |
|
|
Income tax (expense) benefit |
|
(24,439 |
) |
|
|
10,765 |
|
|
|
(56,061 |
) |
|
|
(26,484 |
) |
|
Net income (loss) |
$ |
78,593 |
|
|
$ |
(27,738 |
) |
|
$ |
169,885 |
|
|
$ |
89,693 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.90 |
|
|
$ |
(0.32 |
) |
|
$ |
1.96 |
|
|
$ |
1.04 |
|
|
Diluted |
$ |
0.90 |
|
|
$ |
(0.32 |
) |
|
$ |
1.94 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|||||||||
Basic |
|
86,880 |
|
|
|
86,343 |
|
|
|
86,717 |
|
|
|
86,521 |
|
|
Diluted |
|
87,743 |
|
|
|
86,343 |
|
|
|
87,403 |
|
|
|
87,195 |
|
|
YETI HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(In thousands, except per share amounts) |
||||||||
|
December 30,
|
|
December 31,
|
|||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash |
$ |
438,960 |
|
|
$ |
234,741 |
|
|
Accounts receivable, net |
|
95,774 |
|
|
|
79,446 |
|
|
Inventory |
|
337,208 |
|
|
|
371,412 |
|
|
Prepaid expenses and other current assets |
|
42,463 |
|
|
|
33,321 |
|
|
Total current assets |
|
914,405 |
|
|
|
718,920 |
|
|
Property and equipment, net |
|
130,714 |
|
|
|
124,587 |
|
|
Operating lease right-of-use assets |
|
77,556 |
|
|
|
55,406 |
|
|
Goodwill |
|
54,293 |
|
|
|
54,293 |
|
|
Intangible assets, net |
|
117,629 |
|
|
|
99,429 |
|
|
Other assets |
|
2,595 |
|
|
|
24,130 |
|
|
Total assets |
$ |
1,297,192 |
|
|
$ |
1,076,765 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
190,392 |
|
|
$ |
140,818 |
|
|
Accrued expenses and other current liabilities |
|
130,026 |
|
|
|
211,399 |
|
|
Taxes payable |
|
33,489 |
|
|
|
15,289 |
|
|
Accrued payroll and related costs |
|
23,141 |
|
|
|
4,847 |
|
|
Operating lease liabilities |
|
14,726 |
|
|
|
12,076 |
|
|
Current maturities of long-term debt |
|
6,579 |
|
|
|
24,611 |
|
|
Total current liabilities |
|
398,353 |
|
|
|
409,040 |
|
|
Long-term debt, net of current portion |
|
78,645 |
|
|
|
71,741 |
|
|
Operating lease liabilities, non-current |
|
76,163 |
|
|
|
55,649 |
|
|
Other liabilities |
|
20,421 |
|
|
|
13,858 |
|
|
Total liabilities |
|
573,582 |
|
|
|
550,288 |
|
|
|
|
|
|
|||||
Stockholders’ Equity |
|
|
|
|||||
Common stock |
|
886 |
|
|
|
881 |
|
|
Treasury stock, at cost |
|
(100,025 |
) |
|
|
(100,025 |
) |
|
Additional paid-in capital |
|
386,377 |
|
|
|
357,490 |
|
|
Retained earnings |
|
438,436 |
|
|
|
268,551 |
|
|
Accumulated other comprehensive loss |
|
(2,064 |
) |
|
|
(420 |
) |
|
Total stockholders’ equity |
|
723,610 |
|
|
|
526,477 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,297,192 |
|
|
$ |
1,076,765 |
|
|
YETI HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In thousands, except per share amounts) |
||||||||
|
Twelve Months Ended |
|||||||
|
December 30,
|
|
December 31,
|
|||||
Cash Flows from Operating Activities: |
|
|
|
|||||
Net income |
$ |
169,885 |
|
|
$ |
89,693 |
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
46,434 |
|
|
|
39,847 |
|
|
Amortization of deferred financing fees |
|
604 |
|
|
|
601 |
|
|
Stock-based compensation |
|
29,800 |
|
|
|
17,799 |
|
|
Deferred income taxes |
|
25,561 |
|
|
|
(403 |
) |
|
Impairment of long-lived assets |
|
2,927 |
|
|
|
1,229 |
|
|
Loss on modification and extinguishment of debt |
|
330 |
|
|
|
— |
|
|
Product recalls |
|
1,895 |
|
|
|
97,176 |
|
|
Other |
|
(6,163 |
) |
|
|
2,039 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
(15,683 |
) |
|
|
30,448 |
|
|
Inventory |
|
33,675 |
|
|
|
(91,624 |
) |
|
Other current assets |
|
(7,933 |
) |
|
|
(2,187 |
) |
|
Accounts payable and accrued expenses |
|
(15,144 |
) |
|
|
(86,242 |
) |
|
Taxes payable |
|
18,156 |
|
|
|
439 |
|
|
Other |
|
1,598 |
|
|
|
2,079 |
|
|
Net cash provided by operating activities |
|
285,942 |
|
|
|
100,894 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|||||
Purchases of property and equipment |
|
(50,672 |
) |
|
|
(45,929 |
) |
|
Additions of intangibles, net |
|
(22,152 |
) |
|
|
(10,981 |
) |
|
Net cash used in investing activities |
|
(72,824 |
) |
|
|
(56,910 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|||||
Repayments of long-term debt |
|
(7,734 |
) |
|
|
(22,500 |
) |
|
Payments of deferred financing fees |
|
(2,824 |
) |
|
|
— |
|
|
Taxes paid in connection with employee stock transactions |
|
(2,481 |
) |
|
|
(1,861 |
) |
|
Proceeds from employee stock transactions |
|
1,573 |
|
|
|
3,821 |
|
|
Finance lease principal payment |
|
(2,130 |
) |
|
|
(2,063 |
) |
|
Repurchase of common stock |
|
— |
|
|
|
(100,025 |
) |
|
Net cash used in financing activities |
|
(13,596 |
) |
|
|
(122,628 |
) |
|
Effect of exchange rate changes on cash |
|
4,697 |
|
|
|
1,196 |
|
|
Net increase (decrease) in cash |
|
204,219 |
|
|
|
(77,448 |
) |
|
Cash, beginning of period |
|
234,741 |
|
|
|
312,189 |
|
|
Cash, end of period |
$ |
438,960 |
|
|
$ |
234,741 |
|
|
YETI HOLDINGS, INC. |
||||||||||||||||
Supplemental Financial Information |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
||||||||||||||||
(Unaudited) (In thousands except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
December 30,
|
|
December 31,
|
|
December 30,
|
|
December 31,
|
|||||||||
Net sales |
$ |
519,793 |
|
|
$ |
447,996 |
|
|
$ |
1,658,713 |
|
|
$ |
1,595,222 |
|
|
Product recall(1) |
|
(2,824 |
) |
|
|
38,415 |
|
|
|
21,700 |
|
|
|
38,415 |
|
|
Adjusted net sales |
$ |
516,969 |
|
|
$ |
486,411 |
|
|
$ |
1,680,413 |
|
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ |
315,227 |
|
|
$ |
167,035 |
|
|
$ |
943,186 |
|
|
$ |
763,401 |
|
|
Product recall(1) |
|
(4,099 |
) |
|
|
96,998 |
|
|
|
13,277 |
|
|
|
96,998 |
|
|
Adjusted gross profit |
$ |
311,128 |
|
|
$ |
264,033 |
|
|
$ |
956,463 |
|
|
$ |
860,399 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general, and administrative expenses |
$ |
217,075 |
|
|
$ |
210,777 |
|
|
$ |
717,728 |
|
|
$ |
637,040 |
|
|
Non-cash stock-based compensation expense |
|
(7,882 |
) |
|
|
(2,916 |
) |
|
|
(29,800 |
) |
|
|
(17,799 |
) |
|
Long-lived asset impairment |
|
(964 |
) |
|
|
(1,048 |
) |
|
|
(2,927 |
) |
|
|
(1,229 |
) |
|
Product recall(1) |
|
833 |
|
|
|
(31,910 |
) |
|
|
11,382 |
|
|
|
(31,910 |
) |
|
Organizational realignment costs(2) |
|
— |
|
|
|
— |
|
|
|
(1,582 |
) |
|
|
— |
|
|
Business optimization expense(3) |
|
— |
|
|
|
— |
|
|
|
(582 |
) |
|
|
— |
|
|
Transaction costs(4) |
|
(541 |
) |
|
|
— |
|
|
|
(541 |
) |
|
|
— |
|
|
Adjusted selling, general, and administrative expenses |
$ |
208,521 |
|
|
$ |
174,903 |
|
|
$ |
693,678 |
|
|
$ |
586,102 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
|
60.6 |
% |
|
|
37.3 |
% |
|
|
56.9 |
% |
|
|
47.9 |
% |
|
Adjusted gross margin |
|
60.2 |
% |
|
|
54.3 |
% |
|
|
56.9 |
% |
|
|
52.7 |
% |
|
SG&A expenses as a % of net sales |
|
41.8 |
% |
|
|
47.0 |
% |
|
|
43.3 |
% |
|
|
39.9 |
% |
|
Adjusted SG&A expenses as a % of adjusted net sales |
|
40.3 |
% |
|
|
36.0 |
% |
|
|
41.3 |
% |
|
|
35.9 |
% |
|
_________________________
(1) |
Represents adjustments and charges associated with recalls. For the three months ended December 30, 2023, these include a |
|
(2) |
Represents employee severance costs in connection with strategic organizational realignments. |
|
(3) |
Represents start-up costs, transition and integration charges associated with our new distribution facilities in |
|
(4) |
Represents third-party costs related to the announced acquisition of Mystery Ranch, including professional, legal, and other transaction costs. |
YETI HOLDINGS, INC. |
||||||||||||||||
Supplemental Financial Information |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
||||||||||||||||
(Unaudited) (In thousands except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
December 30,
|
|
December 31,
|
|
December 30,
|
|
December 31,
|
|||||||||
Operating income (loss) |
$ |
98,152 |
|
|
$ |
(43,742 |
) |
|
$ |
225,458 |
|
|
$ |
126,361 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Non-cash stock-based compensation expense(1) |
|
7,882 |
|
|
|
2,916 |
|
|
|
29,800 |
|
|
|
17,799 |
|
|
Long-lived asset impairment(1) |
|
964 |
|
|
|
1,048 |
|
|
|
2,927 |
|
|
|
1,229 |
|
|
Product recalls(2) |
|
(4,932 |
) |
|
|
128,908 |
|
|
|
1,895 |
|
|
|
128,908 |
|
|
Organizational realignment costs(1)(3) |
|
— |
|
|
|
— |
|
|
|
1,582 |
|
|
|
— |
|
|
Business optimization expense(1)(4) |
|
— |
|
|
|
— |
|
|
|
582 |
|
|
|
— |
|
|
Transaction costs(1)(5) |
|
541 |
|
|
|
— |
|
|
|
541 |
|
|
|
— |
|
|
Adjusted operating income |
$ |
102,607 |
|
|
$ |
89,130 |
|
|
$ |
262,785 |
|
|
$ |
274,297 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
78,593 |
|
|
$ |
(27,738 |
) |
|
$ |
169,885 |
|
|
$ |
89,693 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Non-cash stock-based compensation expense(1) |
|
7,882 |
|
|
|
2,916 |
|
|
|
29,800 |
|
|
|
17,799 |
|
|
Long-lived asset impairment(1) |
|
964 |
|
|
|
1,048 |
|
|
|
2,927 |
|
|
|
1,229 |
|
|
Product recalls(2) |
|
(4,932 |
) |
|
|
128,908 |
|
|
|
1,895 |
|
|
|
128,908 |
|
|
Organizational realignment costs(1)(3) |
|
— |
|
|
|
— |
|
|
|
1,582 |
|
|
|
— |
|
|
Business optimization expense(1)(4) |
|
— |
|
|
|
— |
|
|
|
582 |
|
|
|
— |
|
|
Transaction costs(1)(5) |
|
541 |
|
|
|
— |
|
|
|
541 |
|
|
|
— |
|
|
Other income (expense), net(6) |
|
(4,212 |
) |
|
|
(6,484 |
) |
|
|
(1,430 |
) |
|
|
5,718 |
|
|
Tax impact of adjusting items(7) |
|
(60 |
) |
|
|
(30,965 |
) |
|
|
(8,795 |
) |
|
|
(37,645 |
) |
|
Adjusted net income |
$ |
78,776 |
|
|
$ |
67,685 |
|
|
$ |
196,987 |
|
|
$ |
205,702 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net sales |
$ |
519,793 |
|
|
$ |
447,996 |
|
|
$ |
1,658,713 |
|
|
$ |
1,595,222 |
|
|
Adjusted net sales |
$ |
516,969 |
|
|
$ |
486,411 |
|
|
$ |
1,680,413 |
|
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) as a % of net sales |
|
18.9 |
% |
|
|
(9.8 |
) % |
|
|
13.6 |
% |
|
|
7.9 |
% |
|
Adjusted operating income as a % of adjusted net sales |
|
19.8 |
% |
|
|
18.3 |
% |
|
|
15.6 |
% |
|
|
16.8 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) as a % of net sales |
|
15.1 |
% |
|
|
(6.2 |
) % |
|
|
10.2 |
% |
|
|
5.6 |
% |
|
Adjusted net income as a % of adjusted net sales |
|
15.2 |
% |
|
|
13.9 |
% |
|
|
11.7 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per diluted share |
$ |
0.90 |
|
|
$ |
(0.32 |
) |
|
$ |
1.94 |
|
|
$ |
1.03 |
|
|
Adjusted net income per diluted share |
$ |
0.90 |
|
|
$ |
0.78 |
|
|
$ |
2.25 |
|
|
$ |
2.36 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding used to compute adjusted net income per diluted share |
|
87,743 |
|
|
|
86,867 |
|
|
|
87,403 |
|
|
|
87,195 |
|
|
_________________________
(1) |
These costs are reported in SG&A expenses. |
|
(2) |
Represents adjustments and charges associated with recalls. For the three months ended December 30, 2023, these include a |
|
(3) |
Represents employee severance costs in connection with strategic organizational realignments. |
|
(4) |
Represents start-up costs, transition and integration charges associated with our new distribution facilities in |
|
(5) |
Represents third-party costs related to the announced acquisition of Mystery Ranch, including professional, legal, and other transaction costs. |
|
(6) |
Other income (expense), net substantially consists of realized and unrealized foreign currency gains and losses on intercompany balances that arise in the ordinary course of business. For the twelve months ended December 30, 2023, other income (expense), net includes the loss on modification and extinguishment of debt of |
|
(7) |
Represents the tax impact of adjustments calculated at an expected statutory tax rate of |
YETI HOLDINGS, INC. |
|||||||||||||||||||
Supplemental Financial Information |
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||||||||
(Unaudited) (In thousands) |
|||||||||||||||||||
|
Three Months Ended December 30, 2023 |
|
Three Months Ended December 31, 2022 |
||||||||||||||||
|
Net Sales |
|
Product Recalls(1) |
|
Adjusted Net
|
|
Net Sales |
|
Product Recalls(1) |
|
Adjusted Net
|
||||||||
Channel |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wholesale |
$ |
174,934 |
|
$ |
(2,029 |
) |
|
$ |
172,905 |
|
$ |
138,503 |
|
$ |
32,242 |
|
$ |
170,745 |
|
Direct-to-consumer |
|
344,859 |
|
|
(795 |
) |
|
|
344,064 |
|
|
309,493 |
|
|
6,173 |
|
|
315,666 |
|
Total |
$ |
519,793 |
|
$ |
(2,824 |
) |
|
$ |
516,969 |
|
$ |
447,996 |
|
$ |
38,415 |
|
$ |
486,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Category |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Coolers & Equipment |
$ |
165,000 |
|
$ |
(2,824 |
) |
|
$ |
162,176 |
|
$ |
130,495 |
|
$ |
38,415 |
|
$ |
168,910 |
|
Drinkware |
|
346,004 |
|
|
— |
|
|
|
346,004 |
|
|
308,166 |
|
|
— |
|
|
308,166 |
|
Other |
|
8,789 |
|
|
— |
|
|
|
8,789 |
|
|
9,335 |
|
|
— |
|
|
9,335 |
|
Total |
$ |
519,793 |
|
$ |
(2,824 |
) |
|
$ |
516,969 |
|
$ |
447,996 |
|
$ |
38,415 |
|
$ |
486,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Geographic Region |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
434,356 |
|
$ |
(3,090 |
) |
|
$ |
431,266 |
|
$ |
388,788 |
|
$ |
36,066 |
|
$ |
424,854 |
|
International |
$ |
85,437 |
|
$ |
266 |
|
|
$ |
85,703 |
|
$ |
59,208 |
|
$ |
2,349 |
|
$ |
61,557 |
|
Total |
$ |
519,793 |
|
$ |
(2,824 |
) |
|
$ |
516,969 |
|
$ |
447,996 |
|
$ |
38,415 |
|
$ |
486,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Twelve Months Ended December 30, 2023 |
|
Twelve Months Ended December 31, 2022 |
||||||||||||||||
|
Net Sales |
|
Product Recalls(1) |
|
Adjusted Net
|
|
Net Sales |
|
Product Recalls(1) |
|
Adjusted Net
|
||||||||
Channel |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wholesale |
$ |
661,000 |
|
$ |
14,363 |
|
|
$ |
675,363 |
|
$ |
677,517 |
|
$ |
32,242 |
|
$ |
709,759 |
|
Direct-to-consumer |
|
997,713 |
|
|
7,337 |
|
|
|
1,005,050 |
|
|
917,705 |
|
|
6,173 |
|
|
923,878 |
|
Total |
$ |
1,658,713 |
|
$ |
21,700 |
|
|
$ |
1,680,413 |
|
$ |
1,595,222 |
|
$ |
38,415 |
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Category |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Coolers & Equipment |
$ |
597,511 |
|
$ |
21,700 |
|
|
$ |
619,211 |
|
$ |
612,525 |
|
$ |
38,415 |
|
$ |
650,940 |
|
Drinkware |
|
1,022,982 |
|
|
— |
|
|
|
1,022,982 |
|
|
947,221 |
|
|
— |
|
|
947,221 |
|
Other |
|
38,220 |
|
|
— |
|
|
|
38,220 |
|
|
35,476 |
|
|
— |
|
|
35,476 |
|
Total |
$ |
1,658,713 |
|
$ |
21,700 |
|
|
$ |
1,680,413 |
|
$ |
1,595,222 |
|
$ |
38,415 |
|
$ |
1,633,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Geographic Region |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
1,398,925 |
|
$ |
20,830 |
|
|
$ |
1,419,755 |
|
$ |
1,394,026 |
|
$ |
36,066 |
|
$ |
1,430,092 |
|
International |
|
259,788 |
|
|
870 |
|
|
|
260,658 |
|
|
201,196 |
|
|
2,349 |
|
|
203,545 |
|
Total |
$ |
1,658,713 |
|
$ |
21,700 |
|
|
$ |
1,680,413 |
|
$ |
1,595,222 |
|
$ |
38,415 |
|
$ |
1,633,637 |
|
_________________________
(1) |
Represents adjustments and charges associated with recalls. For the three months ended December 30, 2023, these include an increase in net sales primarily related to lower estimated consumer recall participation rates of |
YETI HOLDINGS, INC. |
||||||||||||
Fiscal 2024 Outlook |
||||||||||||
(Unaudited) (In thousands except per share amounts) |
||||||||||||
|
Fiscal 2023 |
|
Fiscal 2024 Outlook |
|||||||||
|
|
|
Low |
|
High |
|||||||
Adjusted net sales |
$ |
1,680,413 |
|
|
$ |
1,798,042 |
|
|
$ |
1,831,650 |
|
|
|
|
|
|
|
|
|||||||
Adjusted operating income |
$ |
262,785 |
|
|
$ |
287,687 |
|
|
$ |
293,064 |
|
|
Adjusted operating income as a % of adjusted net sales |
|
15.6 |
% |
|
|
16.0 |
% |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|||||||
Adjusted net income |
$ |
196,987 |
|
|
$ |
214,437 |
|
|
$ |
218,452 |
|
|
Adjusted net income as a % of adjusted net sales |
|
11.7 |
% |
|
|
11.9 |
% |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|||||||
Adjusted net income per diluted share |
$ |
2.25 |
|
|
$ |
2.45 |
|
|
$ |
2.50 |
|
|
Weighted average shares outstanding - diluted |
|
87,403 |
|
|
|
87,403 |
|
|
|
87,403 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240215188648/en/
Investor Relations Contact:
Tom Shaw, 512-271-6332
Investor.relations@yeti.com
Media Contact:
YETI Holdings, Inc. Media Hotline
Media@yeti.com
Source: YETI Holdings, Inc.
FAQ
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