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Sleep Number Announces Second Quarter 2024 Results

  • Generated adjusted EBITDA of $28 million for the second quarter
  • Delivered gross margin rate of 59.1% for the second quarter, up 150 basis points versus last year and ahead of expectations
  • Reduced operating expenses by $19 million year-over-year for the quarter and $44 million year-to-date (both periods before restructuring costs)
  • Year-to-date free cash flow increased $21 million compared with the same period last year
  • Reiterate full-year 2024 adjusted EBITDA outlook of $125 million to $145 million

Sleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended June 29, 2024.

“The implementation of our transformative initiatives is improving gross margin, operating expenses and free cash flow, as our teams continue to execute sustainable changes across the business. In the second quarter, we delivered gross margin rate expansion and adjusted EBITDA slightly ahead of expectations, despite facing a more challenging industry sales environment than anticipated,” said Shelly Ibach, Chair, President and CEO. “In this environment, we continue to prioritize paying down debt and reducing leverage. Our more durable operating model is enabling us to effectively navigate the persistent macroeconomic headwinds and prolonged industry recession, while positioning us for even greater profitability when the industry recovers.”

Second Quarter Overview

  • Net sales of $408 million were down 11% versus the prior year, including approximately six percentage points of pressure from year-over-year order backlog changes
  • Gross margin of 59.1% was up 150 basis points versus the prior year, driven by ongoing product cost reductions through value engineering and supplier negotiations, efficiency gains in our home delivery and logistics operations and improved product returns rates
  • Operating expenses of $234 million (before restructuring charges) were down $19 million versus the prior year’s second quarter, including broad-based cost reductions across the business
  • Adjusted EBITDA of $28 million compared to $35 million last year, with a higher gross margin rate and $19 million operating expense improvement, partially offsetting the year-over-year net sales decline

Cash Flows and Liquidity Review

  • Net cash provided by operating activities of $24 million for the first six months of the year, a $5 million increase versus the same period last year
  • Free cash flow of $9 million for the first six months of the year, up $21 million versus the same period last year
  • Leverage ratio of 4.4x EBITDAR at the end of the second quarter versus covenant maximum of 5.5x for the quarter

Financial Outlook

The company reiterates its outlook for 2024 adjusted EBITDA of $125 million to $145 million. We expect a mid-single digit net sales decline for the year. For the second half of the year, we expect demand and net sales to be flat to down low-single digits versus the prior year, as we lap easier comparisons from the prior year and benefit from demand driving initiatives. The company expects at least 100 basis points of gross margin rate improvement and $14 million of restructuring charges for the year. The company now expects to generate $50 million to $70 million of free cash flow with capital expenditures of $30 million.

Conference Call Information

Management will host its regularly scheduled conference call to discuss the company’s results at 5 p.m. EDT (4 p.m. CDT; 2 p.m. PDT) 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. We have also posted an updated investor presentation to the investor relations area of the Sleep Number website.

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 over 15 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 nearly 28 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 3,800 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 statement that the company continues to prioritize paying down debt and reducing leverage and that the company’s more durable operating model is enabling the company to effectively navigate the persistent macroeconomic headwinds and prolonged industry recession, while positioning the company for even greater profitability, and the company’s financial outlook, including the company’s expected 2024 adjusted EBITDA and future net sales, demand, gross margin, and free cash flow expectations, 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

AND SUBSIDIARIES

Consolidated Statements of Operations

(unaudited – in thousands, except per share amounts)

 

 

Three Months Ended

 

June 29,

2024

 

% of

Net Sales

 

July 1,

2023

 

% of

Net Sales

Net sales

$

408,413

 

 

100.0

%

 

$

458,789

 

100.0

%

Cost of sales

 

166,923

 

 

40.9

%

 

 

194,544

 

42.4

%

Gross profit

 

241,490

 

 

59.1

%

 

 

264,245

 

57.6

%

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

182,400

 

 

44.7

%

 

 

197,779

 

43.1

%

General and administrative

 

39,573

 

 

9.7

%

 

 

39,795

 

8.7

%

Research and development

 

11,578

 

 

2.8

%

 

 

15,445

 

3.4

%

Restructuring costs

 

1,819

 

 

0.4

%

 

 

 

0.0

%

Total operating expenses

 

235,370

 

 

57.6

%

 

 

253,019

 

55.1

%

Operating income

 

6,120

 

 

1.5

%

 

 

11,226

 

2.4

%

Interest expense, net

 

12,270

 

 

3.0

%

 

 

9,948

 

2.2

%

(Loss) income before income taxes

 

(6,150

)

 

(1.5

%)

 

 

1,278

 

0.3

%

Income tax (benefit) expense

 

(1,099

)

 

(0.3

%)

 

 

524

 

0.1

%

Net (loss) income

$

(5,051

)

 

(1.2

%)

 

$

754

 

0.2

%

 

 

 

 

 

 

 

 

Net (loss) income per share – basic

$

(0.22

)

 

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share – diluted

$

(0.22

)

 

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

Reconciliation of weighted-average shares outstanding:

Basic weighted-average shares outstanding

 

22,614

 

 

 

 

 

22,460

 

 

Dilutive effect of stock-based awards

 

 

 

 

 

 

42

 

 

Diluted weighted-average shares outstanding

 

22,614

 

 

 

 

 

22,502

 

 

 

For the three months ended June 29, 2024, 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

AND SUBSIDIARIES

Consolidated Statements of Operations

(unaudited – in thousands, except per share amounts)

 

 

Six Months Ended

 

June 29,

2024

 

% of

Net Sales

 

July 1,

2023

 

% of

Net Sales

Net sales

$

878,862

 

 

100.0

%

 

$

985,316

 

100.0

%

Cost of sales

 

361,198

 

 

41.1

%

 

 

410,806

 

41.7

%

Gross profit

 

517,664

 

 

58.9

%

 

 

574,510

 

58.3

%

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

390,912

 

 

44.5

%

 

 

428,267

 

43.5

%

General and administrative

 

78,652

 

 

8.9

%

 

 

79,196

 

8.0

%

Research and development

 

24,019

 

 

2.7

%

 

 

29,888

 

3.0

%

Restructuring costs

 

12,419

 

 

1.4

%

 

 

 

0.0

%

Total operating expenses

 

506,002

 

 

57.6

%

 

 

537,351

 

54.5

%

Operating income

 

11,662

 

 

1.3

%

 

 

37,159

 

3.8

%

Interest expense, net

 

24,569

 

 

2.8

%

 

 

19,050

 

1.9

%

(Loss) income before income taxes

 

(12,907

)

 

(1.5

%)

 

 

18,109

 

1.8

%

Income tax (benefit) expense

 

(374

)

 

0.0

%

 

 

5,890

 

0.6

%

Net (loss) income

$

(12,533

)

 

(1.4

%)

 

$

12,219

 

1.2

%

 

 

 

 

 

 

 

 

Net (loss) income per share – basic

$

(0.56

)

 

 

 

$

0.55

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share – diluted

$

(0.56

)

 

 

 

$

0.54

 

 

 

 

 

 

 

 

 

 

Reconciliation of weighted-average shares outstanding:

Basic weighted-average shares outstanding

 

22,560

 

 

 

 

 

22,378

 

 

Dilutive effect of stock-based awards

 

 

 

 

 

 

165

 

 

Diluted weighted-average shares outstanding

 

22,560

 

 

 

 

 

22,543

 

 

 

For the six months ended June 29, 2024, 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

AND SUBSIDIARIES

Consolidated Balance Sheets

(unaudited – in thousands, except per share amounts)

subject to reclassification

 

 

June 29,

2024

 

December 30,

2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,020

 

 

$

2,539

 

Accounts receivable, net of allowances of $1,098 and $1,437, respectively

 

20,272

 

 

 

26,859

 

Inventories

 

95,845

 

 

 

115,433

 

Prepaid expenses

 

21,322

 

 

 

16,660

 

Other current assets

 

37,925

 

 

 

44,637

 

Total current assets

 

177,384

 

 

 

206,128

 

Non-current assets:

 

 

 

Property and equipment, net

 

153,676

 

 

 

179,503

 

Operating lease right-of-use assets

 

373,518

 

 

 

395,411

 

Goodwill and intangible assets, net

 

66,523

 

 

 

66,634

 

Deferred income taxes

 

25,397

 

 

 

20,253

 

Other non-current assets

 

87,147

 

 

 

82,951

 

Total assets

$

883,645

 

 

$

950,880

 

Liabilities and Shareholders’ Deficit

 

 

 

Current liabilities:

 

 

 

Borrowings under revolving credit facility

$

540,200

 

 

$

539,500

 

Accounts payable

 

106,039

 

 

 

135,901

 

Customer prepayments

 

44,518

 

 

 

49,143

 

Accrued sales returns

 

20,531

 

 

 

22,402

 

Compensation and benefits

 

35,305

 

 

 

28,273

 

Taxes and withholding

 

16,563

 

 

 

17,134

 

Operating lease liabilities

 

80,914

 

 

 

81,760

 

Other current liabilities

 

56,500

 

 

 

61,958

 

Total current liabilities

 

900,570

 

 

 

936,071

 

Non-current liabilities:

 

 

 

Operating lease liabilities

 

327,810

 

 

 

351,394

 

Other non-current liabilities

 

102,229

 

 

 

105,343

 

Total non-current liabilities

 

430,039

 

 

 

456,737

 

Total liabilities

 

1,330,609

 

 

 

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, 22,355 and 22,235 shares issued and outstanding, respectively

 

224

 

 

 

222

 

Additional paid-in capital

 

24,211

 

 

 

16,716

 

Accumulated deficit

 

(471,399

)

 

 

(458,866

)

Total shareholders’ deficit

 

(446,964

)

 

 

(441,928

)

Total liabilities and shareholders’ deficit

$

883,645

 

 

$

950,880

 

SLEEP NUMBER CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(unaudited – in thousands)

subject to reclassification

 

 

Six Months Ended

 

June 29,

2024

 

July 1,

2023

Cash flows from operating activities:

 

 

 

Net (loss) income

$

(12,533

)

 

$

12,219

 

Adjustments to reconcile net (loss) income to net cash provided by

operating activities:

 

 

 

Depreciation and amortization

 

34,177

 

 

 

36,749

 

Stock-based compensation

 

8,109

 

 

 

9,890

 

Net loss on disposals and impairments of assets

 

2,500

 

 

 

181

 

Deferred income taxes

 

(5,144

)

 

 

(8,272

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

6,587

 

 

 

1,903

 

Inventories

 

19,588

 

 

 

(7,412

)

Income taxes

 

774

 

 

 

1,808

 

Prepaid expenses and other assets

 

(1,483

)

 

 

(5,824

)

Accounts payable

 

(18,464

)

 

 

(10,244

)

Customer prepayments

 

(4,625

)

 

 

(14,683

)

Accrued compensation and benefits

 

7,153

 

 

 

7,594

 

Other taxes and withholding

 

(1,345

)

 

 

(2,074

)

Other accruals and liabilities

 

(11,776

)

 

 

(3,115

)

Net cash provided by operating activities

 

23,518

 

 

 

18,720

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(14,075

)

 

 

(29,899

)

Issuance of notes receivable

 

(2,942

)

 

 

(435

)

Net cash used in investing activities

 

(17,017

)

 

 

(30,334

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Net (decrease) increase in short-term borrowings

 

(6,408

)

 

 

14,693

 

Repurchases of common stock

 

(612

)

 

 

(3,501

)

Proceeds from issuance of common stock

 

 

 

 

428

 

Net cash (used in) provided by financing activities

 

(7,020

)

 

 

11,620

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(519

)

 

 

6

 

Cash and cash equivalents, at beginning of period

 

2,539

 

 

 

1,792

 

Cash and cash equivalents, at end of period

$

2,020

 

 

$

1,798

 

SLEEP NUMBER CORPORATION

AND SUBSIDIARIES

Supplemental Financial Information

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 29,

2024

 

July 1,

2023

 

June 29,

2024

 

July 1,

2023

Percent of sales:

 

 

 

 

 

 

 

Retail stores

 

87.8

%

 

 

87.7

%

 

 

88.0

%

 

 

87.4

%

Online, phone, chat and other

 

12.2

%

 

 

12.3

%

 

 

12.0

%

 

 

12.6

%

Total Company

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

Sales change rates:

 

 

 

 

 

 

 

Retail comparable-store sales

 

(11

%)

 

 

(20

%)

 

 

(10

%)

 

 

(10

%)

Online, phone and chat

 

(13

%)

 

 

(3

%)

 

 

(16

%)

 

 

(12

%)

Total Retail comparable sales change

 

(11

%)

 

 

(18

%)

 

 

(11

%)

 

 

(10

%)

Net opened/closed stores and other

 

0

%

 

 

2

%

 

 

0

%

 

 

2

%

Total Company

 

(11

%)

 

 

(16

%)

 

 

(11

%)

 

 

(8

%)

 

 

 

 

 

 

 

 

Stores open:

 

 

 

 

 

 

 

Beginning of period

 

661

 

 

 

671

 

 

 

672

 

 

 

670

 

Opened

 

4

 

 

 

7

 

 

 

10

 

 

 

19

 

Closed

 

(19

)

 

 

(6

)

 

 

(36

)

 

 

(17

)

End of period

 

646

 

 

 

672

 

 

 

646

 

 

 

672

 

 

 

 

 

 

 

 

 

Other metrics:

 

 

 

 

 

 

 

Average sales per store ($ in 000's) 1

$

2,732

 

 

$

3,089

 

 

 

 

 

Average sales per square foot 1

$

883

 

 

$

1,007

 

 

 

 

 

Stores > $2 million net sales 2

 

62

%

 

 

71

%

 

 

 

 

Stores > $3 million net sales 2

 

21

%

 

 

31

%

 

 

 

 

Average revenue per smart bed unit 3

$

5,802

 

 

$

5,990

 

 

$

5,782

 

 

$

5,913

 

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 income plus: income tax expense, interest expense, depreciation and amortization, stock-based compensation, restructuring 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

 

June 29,

2024

 

July 1,

2023

 

June 29,

2024

 

July 1,

2023

Net (loss) income

$

(5,051

)

 

$

754

 

$

(40,039

)

 

$

11,822

Income tax (benefit) expense

 

(1,099

)

 

 

524

 

 

(10,730

)

 

 

6,602

Interest expense

 

12,270

 

 

 

9,948

 

 

48,214

 

 

 

32,289

Depreciation and amortization

 

16,347

 

 

 

18,304

 

 

69,676

 

 

 

71,318

Stock-based compensation

 

3,992

 

 

 

5,252

 

 

13,073

 

 

 

15,071

Restructuring costs 1

 

1,819

 

 

 

 

 

28,147

 

 

 

Asset impairments

 

 

 

 

170

 

 

490

 

 

 

294

Adjusted EBITDA

$

28,278

 

 

$

34,952

 

$

108,831

 

 

$

137,396

 

1 Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023.

Free Cash Flow

(in thousands)

 

 

Six Months Ended

 

Trailing Twelve Months Ended

 

June 29,

2024

 

July 1,

2023

 

June 29,

2024

 

July 1,

2023

Net cash provided by (used in) operating activities

$

23,518

 

$

18,720

 

 

$

(4,230

)

 

$

26,167

 

Subtract: Purchases of property and equipment

 

14,075

 

 

29,899

 

 

 

41,232

 

 

 

62,794

 

Free cash flow

$

9,443

 

$

(11,179

)

 

$

(45,462

)

 

$

(36,627

)

 

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

Calculation of Net Leverage Ratio under Revolving Credit Facility

(in thousands)

 

Our calculation of Net Leverage Ratio under Revolving Credit Facility was changed effective with the amendment of our credit facility on November 2, 2023. Prior to the amendment, the calculation included capitalized operating lease obligations based on a multiple of six times annual rent expense. The amendment replaced this line item with operating lease liabilities included in our financial statements under ASC 842. The calculations in accordance with the November 2, 2023 amendment are presented below. The prior year is presented in conformity with the November 2, 2023 amendment.

 

Trailing Twelve Months Ended

 

June 29,

2024

 

July 1,

2023

Borrowings under revolving credit facility

$

540,200

 

$

483,800

Outstanding letters of credit

 

7,147

 

 

7,147

Finance lease obligations

 

280

 

 

361

Consolidated funded indebtedness

$

547,627

 

$

491,308

Operating lease liabilities 1

 

408,724

 

 

438,483

Total debt including operating lease liabilities (a)

$

956,351

 

$

929,791

 

 

 

 

Adjusted EBITDA (see above)

$

108,831

 

$

137,396

Consolidated rent expense

 

110,937

 

 

112,518

Consolidated EBITDAR (b)

$

219,768

 

$

249,914

Net Leverage Ratio under revolving credit facility (a divided by b)

4.4 to 1.0

 

3.7 to 1.0

1 Reflects operating lease liabilities included in our financial statements under ASC 842. The prior period has been updated to reflect this calculation.

Note - Our Net Leverage Ratio under Revolving Credit Facility, Adjusted EBITDA and EBITDAR calculations are considered non-GAAP financial measures and are not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.

GAAP - generally accepted accounting principles in the U.S.

SLEEP NUMBER CORPORATION AND SUBSIDIARIES

Calculation of Return on Invested Capital (Adjusted ROIC)

(in thousands)

 

Adjusted ROIC is a financial measure we use to determine how efficiently we deploy our capital. It quantifies the return we earn on our adjusted invested capital. Management believes Adjusted ROIC is also a useful metric for investors and financial analysts. We compute Adjusted ROIC as outlined below. Our definition and calculation of Adjusted ROIC may not be comparable to similarly titled definitions and calculations used by other companies. The tables below reconcile adjusted net operating profit after taxes (Adjusted NOPAT) and total adjusted invested capital, which are non-GAAP financial measures, to the comparable GAAP financial measures:

 

 

Trailing Twelve Months Ended

 

June 29,

2024

 

July 1,

2023

Adjusted net operating profit after taxes (Adjusted NOPAT)

 

 

 

Operating (loss) income

$

(2,555

)

 

$

50,713

 

Add: Operating lease interest 1

 

27,750

 

 

 

27,040

 

Less: Income taxes 2

 

(6,104

)

 

 

(21,993

)

Adjusted NOPAT

$

19,091

 

 

$

55,760

 

 

 

 

 

Average adjusted invested capital

 

 

 

Total deficit

$

(446,964

)

 

$

(419,141

)

Add: Long-term debt 3

 

540,480

 

 

 

484,161

 

Add: Operating lease liabilities 4

 

408,724

 

 

 

438,483

 

Total adjusted invested capital at end of period

$

502,240

 

 

$

503,503

 

 

 

 

 

Average adjusted invested capital 5

$

509,369

 

 

$

452,573

 

 

 

 

 

Adjusted ROIC 6

 

3.7

%

 

 

12.3

%

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 24.2% and 28.3% for June 29, 2024 and July 1, 2023, respectively.

3

Long-term debt includes existing finance lease liabilities.

4

Reflects operating lease liabilities included in our financial statements under ASC 842.

5

Average adjusted invested capital represents the average of the last five fiscal quarters' ending adjusted invested capital balances.

6

Adjusted ROIC equals Adjusted NOPAT divided by average adjusted invested capital.

 

 

Note - The Company's Adjusted ROIC calculation and data are considered non-GAAP financial measures and are not in accordance with, or preferable to, GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts. The Company updated its Adjusted ROIC calculation effective beginning with the reporting period ended December 31, 2022, to reflect adjustments consistent with ASC 842.

 

GAAP - generally accepted accounting principles in the U.S.

 

SLEEP NUMBER CORPORATION AND SUBSIDIARIES

Reported to Adjusted Statements of Operations Data Reconciliation

(in thousands, except per share amounts)

 

 

Three Months Ended

 

June 29, 2024

 

July 1, 2023

 

As

Reported

 

Restructuring

Costs 1,2

 

As

Adjusted

 

As

Reported

Operating income

$

6,120

 

 

$

1,819

 

$

7,939

 

 

$

11,226

Interest expense, net

 

12,270

 

 

 

 

 

12,270

 

 

 

9,948

(Loss) income before income taxes

 

(6,150

)

 

 

1,819

 

 

(4,331

)

 

 

1,278

Income tax (benefit) expense

 

(1,099

)

 

 

431

 

 

(668

)

 

 

524

Net (loss) income

$

(5,051

)

 

$

1,388

 

$

(3,663

)

 

$

754

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

Basic

$

(0.22

)

 

$

0.06

 

$

(0.16

)

 

$

0.03

Diluted

$

(0.22

)

 

$

0.06

 

$

(0.16

)

 

$

0.03

 

 

 

 

 

 

 

 

Basic Shares

 

22,614

 

 

 

22,614

 

 

22,614

 

 

 

22,460

Diluted Shares

 

22,614

 

 

 

22,614

 

 

22,614

 

 

 

22,502

 

Six Months Ended

 

June 29, 2024

 

July 1, 2023

 

As

Reported

 

Restructuring

Costs 1,2

 

As

Adjusted

 

As

Reported

Operating income

$

11,662

 

 

$

12,419

 

$

24,081

 

 

$

37,159

Interest expense, net

 

24,569

 

 

 

 

 

24,569

 

 

 

19,050

(Loss) income before income taxes

 

(12,907

)

 

 

12,419

 

 

(488

)

 

 

18,109

Income tax (benefit) expense

 

(374

)

 

 

2,943

 

 

2,569

 

 

 

5,890

Net (loss) income

$

(12,533

)

 

$

9,476

 

$

(3,057

)

 

$

12,219

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

Basic

$

(0.56

)

 

$

0.42

 

$

(0.14

)

 

$

0.55

Diluted

$

(0.56

)

 

$

0.42

 

$

(0.14

)

 

$

0.54

 

 

 

 

 

 

 

 

Basic Shares

 

22,560

 

 

 

22,560

 

 

22,560

 

 

 

22,378

Diluted Shares

 

22,560

 

 

 

22,560

 

 

22,560

 

 

 

22,543

1

Represents costs related to business restructuring actions initiated in the fourth quarter of fiscal 2023.

2

The income tax expense is calculated using the estimated U.S. federal and state statutory tax rate of 23.7%.

Note - Our "as adjusted" data is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates year-over-year comparisons for investors and financial analysts.

 

GAAP - generally accepted accounting principles in the U.S.

 

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