Sleep Number Announces Fourth Quarter and Full Year 2024 Results
- Delivered a fourth quarter gross profit rate of 59.9%, up 330 basis points (bp) versus the prior year, with a full-year gross profit rate of 59.6%, up 190 bp versus the prior year
- Reduced fourth operating expenses by $28 million year-over-year, with an $88 million reduction for full year 2024 (before restructuring costs)
- Reported a fourth quarter net loss of $5 million compared with a net loss of $25 million for the same period last year
- Delivered fourth quarter adjusted EBITDA of $26 million, up 43% versus the same period last year, with full year adjusted EBITDA of $120 million which was at the midpoint of our most recent earnings outlook
- Announced in a separate press release the appointment of Linda Findley as Sleep Number's President and Chief Executive Officer and Board member effective April 7, 2025
Sleep Number Corporation (NASDAQ:SNBR) today reported results for the year ended December 28, 2024.
"In the face of significant ongoing weakness in the U.S. bedding industry, we have transformed Sleep Number's operating model over the past 18 months for greater financial resilience. In 2024, we delivered gross margin rate improvement and operating cost reductions that were nearly double our original targets for the year, while generating positive free cash flow," said Shelly Ibach, Chair, President and CEO. "While the marketplace remains extremely challenging, our dedicated team is intently focused on driving improved demand and further advancing our operating model transformation, which position Sleep Number to deliver profitable long-term growth when the market recovers."
Fourth Quarter Overview
- Net sales of $377 million were down 12% versus the prior year, including one to two percentage points of pressure from lower store count versus the prior year
- Gross margin of 59.9% was up 330 bp versus the prior year, driven by year-over-year product cost reductions, favorable product mix, and efficiency gains in our home delivery and logistics operations
- Operating expenses of $219 million were down $28 million versus the prior year (before restructuring costs)
- Net loss of $5 million compared with a net loss of $25 million for the same period last year
- Adjusted EBITDA of $26 million was up 43% compared to the prior year, with an adjusted EBITDA margin of 7.0%, up 270 bp versus the prior year
Full Year Overview
- Net sales decreased 11% to $1.68 billion in 2024
- Gross margin of 59.6% of net sales was up 190 bp versus the prior year, including the benefit of product cost reductions through value engineering and ongoing supplier negotiations and ongoing efficiencies in our home delivery and logistics operations
- Operating expenses of $962 million were reduced by $88 million versus the prior year (before restructuring costs)
- Net loss of $20 million versus a net loss of $15 million last year
- Adjusted EBITDA of $120 million, with an adjusted EBITDA margin of 7.1%, up 40 bp versus the prior year
Cash Flows and Liquidity Review
- Net cash provided by operating activities of $27 million for the year, up $36 million versus the same period last year
- Free cash flow of $4 million for the year, up $70 million versus the prior year
- Leverage ratio of 4.2x EBITDAR at the end of the year versus covenant maximum of 4.8x
Amended Credit Agreement
The company also announced today that it has entered into an amendment for its existing revolving credit facility, including permitted financial covenant levels, to provide greater flexibility through 2025. Additional details regarding the credit agreement amendment are available on the Form 8-K filed with the Securities and Exchange Commission.
Leadership Transition
In a separate press release today, the company also announced:
- Linda Findley has been appointed as Sleep Number's President and Chief Executive Officer, and a member of the Board effective April 7, 2025
- In addition, Phillip M. Eyler has been appointed independent Chair of the Board, effective upon the conclusion of the 2025 Annual Meeting
Financial Outlook
As Ms. Findley transitions into her role, we want to provide her with the time and flexibility necessary to evaluate our strategies and business trends prior to issuing a 2025 financial outlook at a later date.
Conference Call Information
Management will host its regularly scheduled conference call to discuss the company's results at 5 p.m. EST (4 p.m. CST; 2 p.m. PST) today. To access the webcast, please visit the investor relations area of the Sleep Number website at https://ir.sleepnumber.com. The webcast replay will remain available for approximately 60 days.
About Sleep Number Corporation
Sleep Number is a wellness technology company. We are guided by our purpose to improve the health and wellbeing of society through higher quality sleep; to date, our innovations have improved nearly 16 million lives. Our wellness technology platform helps solve sleep problems, whether it's providing individualized temperature control for each sleeper through our Climate360® smart bed or applying our 32 billion hours of longitudinal sleep data and expertise to research with global institutions.
Our smart bed ecosystem drives best-in-class engagement through dynamic, adjustable, and effortless sleep with personalized digital sleep and health insights; our millions of Smart Sleepers are loyal brand advocates. And our 3,700 mission-driven team members passionately innovate to drive value creation through our vertically integrated business model, including our exclusive direct-to-consumer selling in nearly 650 stores and online.
To learn more about life-changing, individualized sleep, visit a Sleep Number® store near you, our newsroom and investor relations sites, or SleepNumber.com
Forward-looking Statements
Statements used in this news release relating to future plans, events, financial results or performance, such as the statements that the company has transformed its operating model for greater financial resilience and is focused on driving demand and taking deliberate actions to strengthen the company's operating fundamentals, which position the company to deliver profitable long-term growth when the market recovers, statements about its CEO and Board leadership transition, and future plans to issue financial guidance are forward-looking statements subject to certain risks and uncertainties which could cause the company's results to differ materially. The most important risks and uncertainties are described in the company's filings with the Securities and Exchange Commission, including in Item 1A of the company's Annual Report on Form 10-K and other periodic reports. Forward-looking statements speak only as of the date they are made, and the company does not undertake any obligation to update any forward-looking statement.
SLEEP NUMBER CORPORATION
|
|||||||||||||
|
Three Months Ended |
||||||||||||
|
December 28, 2024 |
|
% of Net Sales |
|
December 30, 2023 |
|
% of Net Sales |
||||||
Net sales |
$ |
376,817 |
|
|
100.0 |
% |
|
$ |
429,518 |
|
|
100.0 |
% |
Cost of sales |
|
151,236 |
|
|
40.1 |
% |
|
|
186,609 |
|
|
43.4 |
% |
Gross profit |
|
225,581 |
|
|
59.9 |
% |
|
|
242,909 |
|
|
56.6 |
% |
Operating expenses: |
|
|
|
|
|
|
|
||||||
Sales and marketing |
|
170,232 |
|
|
45.2 |
% |
|
|
198,032 |
|
|
46.1 |
% |
General and administrative |
|
38,234 |
|
|
10.1 |
% |
|
|
35,477 |
|
|
8.3 |
% |
Research and development |
|
10,653 |
|
|
2.8 |
% |
|
|
13,276 |
|
|
3.1 |
% |
Restructuring costs |
|
3,684 |
|
|
1.0 |
% |
|
|
15,728 |
|
|
3.7 |
% |
Total operating expenses |
|
222,803 |
|
|
59.1 |
% |
|
|
262,513 |
|
|
61.1 |
% |
Operating income (loss) |
|
2,778 |
|
|
0.7 |
% |
|
|
(19,604 |
) |
|
(4.6 |
%) |
Interest expense, net |
|
11,742 |
|
|
3.1 |
% |
|
|
12,687 |
|
|
3.0 |
% |
Loss before income taxes |
|
(8,964 |
) |
|
(2.4 |
%) |
|
|
(32,291 |
) |
|
(7.5 |
%) |
Income tax benefit |
|
(4,299 |
) |
|
(1.1 |
%) |
|
|
(7,103 |
) |
|
(1.7 |
%) |
Net loss |
$ |
(4,665 |
) |
|
(1.2 |
%) |
|
$ |
(25,188 |
) |
|
(5.9 |
%) |
|
|
|
|
|
|
|
|
||||||
Net loss per share – basic |
$ |
(0.21 |
) |
|
|
|
$ |
(1.12 |
) |
|
|
||
|
|
|
|
|
|
|
|
||||||
Net loss per share – diluted |
$ |
(0.21 |
) |
|
|
|
$ |
(1.12 |
) |
|
|
||
|
|
|
|
|
|
|
|
||||||
Reconciliation of weighted-average shares outstanding: |
|||||||||||||
Basic weighted-average shares outstanding |
|
22,659 |
|
|
|
|
|
22,483 |
|
|
|
||
Dilutive effect of stock-based awards |
|
— |
|
|
|
|
|
— |
|
|
|
||
Diluted weighted-average shares outstanding |
|
22,659 |
|
|
|
|
|
22,483 |
|
|
|
||
For the three months ended December 28, 2024 and December 30, 2023, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share. |
SLEEP NUMBER CORPORATION
|
|||||||||||||
|
Twelve Months Ended |
||||||||||||
|
December 28, 2024 |
|
% of Net Sales |
|
December 30, 2023 |
|
% of Net Sales |
||||||
Net sales |
$ |
1,682,296 |
|
|
100.0 |
% |
|
$ |
1,887,482 |
|
|
100.0 |
% |
Cost of sales |
|
679,523 |
|
|
40.4 |
% |
|
|
798,952 |
|
|
42.3 |
% |
Gross profit |
|
1,002,773 |
|
|
59.6 |
% |
|
|
1,088,530 |
|
|
57.7 |
% |
Operating expenses: |
|
|
|
|
|
|
|
||||||
Sales and marketing |
|
766,624 |
|
|
45.6 |
% |
|
|
847,442 |
|
|
44.9 |
% |
General and administrative |
|
149,956 |
|
|
8.9 |
% |
|
|
146,621 |
|
|
7.8 |
% |
Research and development |
|
45,255 |
|
|
2.7 |
% |
|
|
55,797 |
|
|
3.0 |
% |
Restructuring costs |
|
18,066 |
|
|
1.1 |
% |
|
|
15,728 |
|
|
0.8 |
% |
Total operating expenses |
|
979,901 |
|
|
58.2 |
% |
|
|
1,065,588 |
|
|
56.5 |
% |
Operating income |
|
22,872 |
|
|
1.4 |
% |
|
|
22,942 |
|
|
1.2 |
% |
Interest expense, net |
|
48,368 |
|
|
2.9 |
% |
|
|
42,695 |
|
|
2.3 |
% |
Loss before income taxes |
|
(25,496 |
) |
|
(1.5 |
%) |
|
|
(19,753 |
) |
|
(1.0 |
%) |
Income tax benefit |
|
(5,162 |
) |
|
(0.3 |
%) |
|
|
(4,466 |
) |
|
(0.2 |
%) |
Net loss |
$ |
(20,334 |
) |
|
(1.2 |
%) |
|
$ |
(15,287 |
) |
|
(0.8 |
%) |
|
|
|
|
|
|
|
|
||||||
Net loss per share – basic |
$ |
(0.90 |
) |
|
|
|
$ |
(0.68 |
) |
|
|
||
|
|
|
|
|
|
|
|
||||||
Net loss per share – diluted |
$ |
(0.90 |
) |
|
|
|
$ |
(0.68 |
) |
|
|
||
|
|
|
|
|
|
|
|
||||||
Reconciliation of weighted-average shares outstanding: |
|||||||||||||
Basic weighted-average shares outstanding |
|
22,606 |
|
|
|
|
|
22,429 |
|
|
|
||
Dilutive effect of stock-based awards |
|
— |
|
|
|
|
|
— |
|
|
|
||
Diluted weighted-average shares outstanding |
|
22,606 |
|
|
|
|
|
22,429 |
|
|
|
||
For the years ended December 28, 2024 and December 30, 2023, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share. |
SLEEP NUMBER CORPORATION
|
|||||||
|
December 28, 2024 |
|
December 30, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,950 |
|
|
$ |
2,539 |
|
Accounts receivable, net of allowances of $1,113 and $1,437, respectively |
|
17,516 |
|
|
|
26,859 |
|
Inventories |
|
103,152 |
|
|
|
115,433 |
|
Prepaid expenses |
|
14,568 |
|
|
|
16,660 |
|
Other current assets |
|
44,098 |
|
|
|
44,637 |
|
Total current assets |
|
181,284 |
|
|
|
206,128 |
|
Non-current assets: |
|
|
|
||||
Property and equipment, net |
|
129,574 |
|
|
|
179,503 |
|
Operating lease right-of-use assets |
|
356,641 |
|
|
|
395,411 |
|
Goodwill and intangible assets, net |
|
66,412 |
|
|
|
66,634 |
|
Deferred income taxes |
|
33,575 |
|
|
|
20,253 |
|
Other non-current assets |
|
93,324 |
|
|
|
82,951 |
|
Total assets |
$ |
860,810 |
|
|
$ |
950,880 |
|
Liabilities and Shareholders' Deficit |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Borrowings under revolving credit facility |
$ |
546,600 |
|
|
$ |
539,500 |
|
Accounts payable |
|
107,619 |
|
|
|
135,901 |
|
Customer prepayments |
|
46,933 |
|
|
|
49,143 |
|
Accrued sales returns |
|
19,092 |
|
|
|
22,402 |
|
Compensation and benefits |
|
31,038 |
|
|
|
28,273 |
|
Taxes and withholding |
|
18,619 |
|
|
|
17,134 |
|
Operating lease liabilities |
|
82,307 |
|
|
|
81,760 |
|
Other current liabilities |
|
55,804 |
|
|
|
61,958 |
|
Total current liabilities |
|
908,012 |
|
|
|
936,071 |
|
Non-current liabilities: |
|
|
|
||||
Operating lease liabilities |
|
307,201 |
|
|
|
351,394 |
|
Other non-current liabilities |
|
97,183 |
|
|
|
105,343 |
|
Total non-current liabilities |
|
404,384 |
|
|
|
456,737 |
|
Total liabilities |
|
1,312,396 |
|
|
|
1,392,808 |
|
Shareholders' deficit: |
|
|
|
||||
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 142,500 shares authorized, 22,388 and 22,235 shares issued and outstanding, respectively |
|
224 |
|
|
|
222 |
|
Additional paid-in capital |
|
27,390 |
|
|
|
16,716 |
|
Accumulated deficit |
|
(479,200 |
) |
|
|
(458,866 |
) |
Total shareholders' deficit |
|
(451,586 |
) |
|
|
(441,928 |
) |
Total liabilities and shareholders' deficit |
$ |
860,810 |
|
|
$ |
950,880 |
|
SLEEP NUMBER CORPORATION
|
|||||||
|
Twelve Months Ended |
||||||
|
December 28, 2024 |
|
December 30, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(20,334 |
) |
|
$ |
(15,287 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
66,351 |
|
|
|
74,043 |
|
Stock-based compensation |
|
11,444 |
|
|
|
14,855 |
|
Net loss on disposals and impairments of assets |
|
4,315 |
|
|
|
2,898 |
|
Deferred income taxes |
|
(13,322 |
) |
|
|
(12,295 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
9,343 |
|
|
|
(854 |
) |
Inventories |
|
12,281 |
|
|
|
(1,399 |
) |
Income taxes |
|
3,987 |
|
|
|
(5,969 |
) |
Prepaid expenses and other assets |
|
(10,867 |
) |
|
|
(5,220 |
) |
Accounts payable |
|
(15,910 |
) |
|
|
(28,934 |
) |
Customer prepayments |
|
(2,210 |
) |
|
|
(24,038 |
) |
Accrued compensation and benefits |
|
2,755 |
|
|
|
(2,943 |
) |
Other taxes and withholding |
|
(2,502 |
) |
|
|
(519 |
) |
Other accruals and liabilities |
|
(18,188 |
) |
|
|
(3,366 |
) |
Net cash provided by (used in) operating activities |
|
27,143 |
|
|
|
(9,028 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(23,505 |
) |
|
|
(57,056 |
) |
Proceeds from sales of property and equipment |
|
156 |
|
|
|
21 |
|
Issuance of notes receivable |
|
(2,942 |
) |
|
|
(1,317 |
) |
Net cash used in investing activities |
|
(26,291 |
) |
|
|
(58,352 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Net (decrease) increase in short-term borrowings |
|
(673 |
) |
|
|
73,463 |
|
Repurchases of common stock |
|
(768 |
) |
|
|
(3,747 |
) |
Proceeds from issuance of common stock |
|
— |
|
|
|
428 |
|
Debt issuance costs |
|
— |
|
|
|
(2,017 |
) |
Net cash (used in) provided by financing activities |
|
(1,441 |
) |
|
|
68,127 |
|
|
|
|
|
||||
Net (decrease) increase in cash and cash equivalents |
|
(589 |
) |
|
|
747 |
|
Cash and cash equivalents, at beginning of period |
|
2,539 |
|
|
|
1,792 |
|
Cash and cash equivalents, at end of period |
$ |
1,950 |
|
|
$ |
2,539 |
|
SLEEP NUMBER CORPORATION
|
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 28, 2024 |
|
December 30, 2023 |
|
December 28, 2024 |
|
December 30, 2023 |
||||||||
Percent of sales: |
|
|
|
|
|
|
|
||||||||
Retail stores |
|
86.6 |
% |
|
|
85.9 |
% |
|
|
87.6 |
% |
|
|
86.8 |
% |
Online, phone, chat and other |
|
13.4 |
% |
|
|
14.1 |
% |
|
|
12.4 |
% |
|
|
13.2 |
% |
Total Company |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales change rates: |
|
|
|
|
|
|
|
||||||||
Retail comparable-store sales |
|
(9 |
%) |
|
|
(14 |
%) |
|
|
(9 |
%) |
|
|
(12 |
%) |
Online, phone and chat |
|
(17 |
%) |
|
|
(20 |
%) |
|
|
(17 |
%) |
|
|
(15 |
%) |
Total Retail comparable sales change |
|
(10 |
%) |
|
|
(15 |
%) |
|
|
(10 |
%) |
|
|
(12 |
%) |
Net opened/closed stores and other |
|
(2 |
%) |
|
|
1 |
% |
|
|
(1 |
%) |
|
|
1 |
% |
Total Company |
|
(12 |
%) |
|
|
(14 |
%) |
|
|
(11 |
%) |
|
|
(11 |
%) |
|
|
|
|
|
|
|
|
||||||||
Stores open: |
|
|
|
|
|
|
|
||||||||
Beginning of period |
|
643 |
|
|
|
678 |
|
|
|
672 |
|
|
|
670 |
|
Opened |
|
1 |
|
|
|
9 |
|
|
|
12 |
|
|
|
36 |
|
Closed |
|
(4 |
) |
|
|
(15 |
) |
|
|
(44 |
) |
|
|
(34 |
) |
End of period |
|
640 |
|
|
|
672 |
|
|
|
640 |
|
|
|
672 |
|
|
|
|
|
|
|
|
|
||||||||
Other metrics: |
|
|
|
|
|
|
|
||||||||
Average sales per store ($ in 000's) 1 |
$ |
2,601 |
|
|
$ |
2,853 |
|
|
|
|
|
||||
Average sales per square foot 1 |
$ |
841 |
|
|
$ |
926 |
|
|
|
|
|
||||
Stores > $2 million net sales 2 |
|
57 |
% |
|
|
65 |
% |
|
|
|
|
||||
Stores > $3 million net sales 2 |
|
18 |
% |
|
|
24 |
% |
|
|
|
|
||||
Average revenue per smart bed unit 3 |
$ |
5,959 |
|
|
$ |
5,541 |
|
|
$ |
5,818 |
|
|
$ |
5,755 |
|
1 |
Trailing twelve months Total Retail comparable sales per store open at least one year. |
2 |
Trailing twelve months for stores open at least one year (excludes online, phone and chat sales). |
3 |
Represents Total Retail (stores, online, phone and chat) net sales divided by Total Retail smart bed units. |
SLEEP NUMBER CORPORATION AND SUBSIDIARIES Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (in thousands) |
|||||||||||||||
We define earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) as net (loss) income plus: income tax expense (benefit), interest expense, depreciation and amortization, stock-based compensation, restructuring costs, CEO transition/proxy contest costs, and asset impairments. Management believes Adjusted EBITDA is a useful indicator of our financial performance and our ability to generate cash from operating activities. Our definition of Adjusted EBITDA may not be comparable to similarly titled definitions used by other companies. The table below reconciles Adjusted EBITDA, which is a non-GAAP financial measure, to the comparable GAAP financial measure: |
|||||||||||||||
|
Three Months Ended |
|
Trailing Twelve Months Ended |
||||||||||||
|
December 28, 2024 |
|
December 30, 2023 |
|
December 28, 2024 |
|
December 30, 2023 |
||||||||
Net loss |
$ |
(4,665 |
) |
|
$ |
(25,188 |
) |
|
$ |
(20,334 |
) |
|
$ |
(15,287 |
) |
Income tax benefit |
|
(4,299 |
) |
|
|
(7,103 |
) |
|
|
(5,162 |
) |
|
|
(4,466 |
) |
Interest expense |
|
11,742 |
|
|
|
12,687 |
|
|
|
48,368 |
|
|
|
42,695 |
|
Depreciation and amortization |
|
15,628 |
|
|
|
17,984 |
|
|
|
64,979 |
|
|
|
72,479 |
|
Stock-based compensation |
|
1,903 |
|
|
|
3,982 |
|
|
|
11,444 |
|
|
|
14,855 |
|
Restructuring costs 1 |
|
3,684 |
|
|
|
15,728 |
|
|
|
18,066 |
|
|
|
15,728 |
|
CEO transition/Proxy contest costs 2 |
|
998 |
|
|
|
— |
|
|
|
998 |
|
|
|
— |
|
Asset impairments |
|
1,220 |
|
|
|
198 |
|
|
|
1,220 |
|
|
|
672 |
|
Adjusted EBITDA |
$ |
26,211 |
|
|
$ |
18,288 |
|
|
$ |
119,579 |
|
|
$ |
126,676 |
|
1 |
Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023. |
2 |
Represents costs related to CEO transition activities of $0.2 million and proxy contest costs of $0.8 million which were both initiated in the fourth quarter of fiscal 2024. |
Free Cash Flow
|
||||||||||||||
|
Three Months Ended |
|
Trailing Twelve Months Ended |
|||||||||||
|
December 28, 2024 |
|
December 30, 2023 |
|
December 28, 2024 |
|
December 30, 2023 |
|||||||
Net cash (used in) provided by operating activities |
$ |
(23,681 |
) |
|
$ |
(40,844 |
) |
|
$ |
27,143 |
|
$ |
(9,028 |
) |
Subtract: Purchases of property and equipment |
|
6,287 |
|
|
|
9,034 |
|
|
|
23,505 |
|
|
57,056 |
|
Free cash flow |
$ |
(29,968 |
) |
|
$ |
(49,878 |
) |
|
$ |
3,638 |
|
$ |
(66,084 |
) |
Note - Our Adjusted EBITDA calculations and Free Cash Flow data are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts. |
|||
GAAP - generally accepted accounting principles in the U.S. |
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
|
|||||
|
Trailing Twelve Months Ended |
||||
|
December 28, 2024 |
|
December 30, 2023 |
||
Borrowings under revolving credit facility |
$ |
546,600 |
|
$ |
539,500 |
Outstanding letters of credit |
|
7,147 |
|
|
7,147 |
Finance lease obligations |
|
241 |
|
|
319 |
Consolidated funded indebtedness |
$ |
553,988 |
|
$ |
546,966 |
Operating lease liabilities 1 |
|
389,508 |
|
|
433,154 |
Total debt including operating lease liabilities (a) |
$ |
943,496 |
|
$ |
980,120 |
|
|
|
|
||
Adjusted EBITDA (see above) |
$ |
119,579 |
|
$ |
126,676 |
Consolidated rent expense |
|
107,105 |
|
|
113,801 |
Consolidated EBITDAR (b) |
$ |
226,684 |
|
$ |
240,477 |
Net Leverage Ratio under revolving credit facility (a divided by b) |
4.2 to 1.0 |
|
4.1 to 1.0 |
||
1 |
Reflects operating lease liabilities included in our financial statements under ASC 842. |
Note - Our Net Leverage Ratio under Revolving Credit Facility, Adjusted EBITDA and EBITDAR calculations are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts. |
|||
GAAP - generally accepted accounting principles in the U.S. |
SLEEP NUMBER CORPORATION AND SUBSIDIARIES
|
|||||||
Adjusted ROIC is a financial measure we use to determine how efficiently we deploy our capital. It quantifies the return we earn on our adjusted invested capital. Management believes Adjusted ROIC is also a useful metric for investors and financial analysts. We compute Adjusted ROIC as outlined below. Our definition and calculation of Adjusted ROIC may not be comparable to similarly titled definitions and calculations used by other companies. The tables below reconcile adjusted net operating profit after taxes (Adjusted NOPAT) and total adjusted invested capital, which are non-GAAP financial measures, to the comparable GAAP financial measures: |
|||||||
|
Trailing Twelve Months Ended |
||||||
|
December 28, 2024 |
|
December 30, 2023 |
||||
Adjusted net operating profit after taxes (Adjusted NOPAT) |
|
|
|
||||
Operating income |
$ |
22,872 |
|
|
$ |
22,942 |
|
Add: Operating lease interest 1 |
|
26,775 |
|
|
|
27,777 |
|
Less: Income taxes 2 |
|
(11,907 |
) |
|
|
(11,851 |
) |
Adjusted NOPAT |
$ |
37,740 |
|
|
$ |
38,868 |
|
|
|
|
|
||||
Average adjusted invested capital |
|
|
|
||||
Total deficit |
$ |
(451,586 |
) |
|
$ |
(441,928 |
) |
Add: Long-term debt 3 |
|
546,841 |
|
|
|
539,819 |
|
Add: Operating lease liabilities 4 |
|
389,508 |
|
|
|
433,154 |
|
Total adjusted invested capital at end of period |
$ |
484,763 |
|
|
$ |
531,045 |
|
|
|
|
|
||||
Average adjusted invested capital 5 |
$ |
497,972 |
|
|
$ |
496,612 |
|
|
|
|
|
||||
Adjusted ROIC 6 |
|
7.6 |
% |
|
|
7.8 |
% |
1 |
Represents the interest expense component of lease expense included in our financial statements under ASC 842, Leases. |
2 |
Reflects annual effective income tax rates, before discrete adjustments, of 24.0% and 23.4% for December 28, 2024 and December 30, 2023, respectively. |
3 |
Long-term debt includes existing finance lease liabilities. |
4 |
Reflects operating lease liabilities included in our financial statements under ASC 842. |
5 |
Average adjusted invested capital represents the average of the last five fiscal quarters' ending adjusted invested capital balances. |
6 |
Adjusted ROIC equals Adjusted NOPAT divided by average adjusted invested capital. |
Note - The Company's Adjusted ROIC calculation and data are considered non-GAAP financial measures and are not in accordance with, or preferable to, GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts. |
|||
GAAP - generally accepted accounting principles in the U.S. |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305313630/en/
Investor Contact: Dave Schwantes; (763) 551-7498; [email protected]
Media Contact: Julie Elepano; [email protected]