Sleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended September 26, 2020.
"Our exceptional third quarter performance reflects the ongoing relevance of our life-changing 360® smart beds as consumers deepen their understanding of the importance of quality sleep to their overall health and wellness,” said Shelly Ibach, President and CEO. “For the third consecutive year, since transitioning to our smart beds, our Q3 results reflect double-digit demand growth. We again demonstrated the resilience of our vertical business model through our top and bottom-line performance and a trailing twelve months ROIC of nearly 21%. I am thankful for our team's amazing dedication to our mission, their ingenuity and how they keep each other safe, healthy and happy. Driven by our purpose, we are accelerating our strategic initiatives, strengthening our competitive advantages and creating meaningful value for our customers, team, business partners and shareholders.”
Third Quarter Overview
- Net sales increased 12% to $531 million, including an 11% comparable sales gain; online and phone sales were up 111% versus the prior year and represented 14% of net sales
- Gross profit rate increased 70 basis points (bp) to 63.1% of net sales compared with 62.4% for the same period last year
- Operating income increased 78% to $70 million, or 13.1% of net sales, up 490 bp versus the prior year’s third quarter
- Earnings per diluted share increased 90% to $1.79, compared with $0.94 for the prior year
Cash Flows and Liquidity Review
- Generated $287 million in net cash from operating activities for the first nine months of 2020, up 51% versus last year, with year-to-date operating free cash flows of $259 million, up 81% versus prior year
- Invested $28 million in year-to-date capital expenditures compared to $47 million for the prior year period
- Return on invested capital (ROIC) of 20.8% for the trailing twelve-month period, up 240 bp versus the prior year comparable period
- Cash and liquidity available under our credit facility, before letters of credit, was $418 million at the end of the third quarter, up $180 million from the same period last year; repaid $75 million, 364-day term loan six months early and removed related LIBOR floor and share repurchase restriction
- Leverage ratio was 1.9x EBITDAR at the end of the third quarter, compared with 2.6x for the same period last year
Financial Outlook
The company expects to generate full-year 2020 earnings per diluted share of approximately $4.00, which would represent a 48% increase versus full-year 2019 earnings per diluted share of $2.70. The outlook assumes 7% to 8% net sales growth for 2020, including an estimated two percentage points of growth and approximately 25 cents per share from the 53rd week. The company also intends to resume share repurchases in the fourth quarter and to operate, over time, with leverage of 2.5x to 3.0x EBITDAR, with seasonal fluctuations expected.
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.
About Sleep Number Corporation
Individuality is core to Sleep Number. Our purpose driven company is comprised of more than 4,300 passionate team members who are dedicated to our mission of improving lives by individualizing sleep experiences. Our 360® smart beds provide each sleeper with adjustable, personalized comfort for proven quality sleep. We have improved nearly 13 million lives as we strive to improve society’s wellbeing through higher quality sleep.
Sleep science and data are the foundation of our innovations. Our award-winning 360® smart beds benefit from our proprietary SleepIQ® technology - learning from nearly 8 billion hours of highly accurate sleep data - to provide effortless comfort and individualized sleep health insights, including your daily SleepIQ® score.
For life-changing sleep, visit SleepNumber.com or one of our 600 Sleep Number® stores. More information is available on our newsroom and investor relations sites.
Forward-looking Statements
Statements used in this news release relating to future plans, events, financial results or performance are forward-looking statements subject to certain risks and uncertainties including, among others, such factors as current and future general and industry economic trends and consumer confidence; risks inherent in outbreaks of pandemics or contagious diseases; the effectiveness of our marketing messages; the efficiency of our advertising and promotional efforts; our ability to execute our company-controlled distribution strategy; our ability to achieve and maintain acceptable levels of product and service quality, and acceptable product return and warranty claims rates; our ability to continue to improve and expand our product line; consumer acceptance of our products, product quality, innovation and brand image; industry competition, the emergence of additional competitive products, and the adequacy of our intellectual property rights to protect our products and brand from competitive or infringing activities; claims that our products, processes, advertising, or trademarks infringe the intellectual property rights of others; availability of attractive and cost-effective consumer credit options; pending and unforeseen litigation and the potential for adverse publicity associated with litigation; our manufacturing processes with minimal levels of inventory, which may leave us vulnerable to shortages in supply; our dependence on significant suppliers and third parties and our ability to maintain relationships with key suppliers or third-parties, including several sole-source suppliers or providers of services; rising commodity costs and other inflationary pressures; risks inherent in global sourcing activities, including tariffs, pandemics, strikes, and the potential for shortages in supply; risks of disruption in the operation of our main manufacturing facilities or assembly distribution facilities; increasing government regulation; the adequacy of our and third-party information systems to meet the evolving needs of our business and existing and evolving risks and regulatory standards applicable to data privacy and security; the costs and potential disruptions to our business related to upgrading our management information systems; the vulnerability of our and third-party information systems to attacks by hackers or other cyber threats that could compromise the security of our systems, result in a data breach or disrupt our business; and our ability to attract, retain and motivate qualified management, executive and other key team members, including qualified retail sales professionals and managers. Additional information concerning these and other risks and uncertainties is contained in the company’s filings with the Securities and Exchange Commission (SEC), including the Annual Report on Form 10-K, and other periodic reports filed with the SEC. The company has no obligation to publicly update or revise any of the forward-looking statements in this news release.
| SLEEP NUMBER CORPORATION | ||||||||||||
| AND SUBSIDIARIES | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| (unaudited – in thousands, except per share amounts) | ||||||||||||
| Three Months Ended | ||||||||||||
September 26, | % of | September 28, | % of | |||||||||
2020 | Net Sales | 2019 | Net Sales | |||||||||
| Net sales | $ | 531,155 | 100.0 | % | $ | 474,778 | 100.0 | % | ||||
| Cost of sales | 196,195 | 36.9 | % | 178,388 | 37.6 | % | ||||||
| Gross profit | 334,960 | 63.1 | % | 296,390 | 62.4 | % | ||||||
| Operating expenses: | ||||||||||||
| Sales and marketing | 211,574 | 39.8 | % | 213,133 | 44.9 | % | ||||||
| General and administrative | 44,127 | 8.3 | % | 35,098 | 7.4 | % | ||||||
| Research and development | 9,644 | 1.8 | % | 9,007 | 1.9 | % | ||||||
| Total operating expenses | 265,345 | 50.0 | % | 257,238 | 54.2 | % | ||||||
| Operating income | 69,615 | 13.1 | % | 39,152 | 8.2 | % | ||||||
| Interest expense, net | 1,827 | 0.3 | % | 3,131 | 0.7 | % | ||||||
| Income before income taxes | 67,788 | 12.8 | % | 36,021 | 7.6 | % | ||||||
| Income tax expense | 16,468 | 3.1 | % | 7,967 | 1.7 | % | ||||||
| Net income | $ | 51,320 | 9.7 | % | $ | 28,054 | 5.9 | % | ||||
| Net income per share – basic | $ | 1.83 | $ | 0.96 | ||||||||
| Net income per share – diluted | $ | 1.79 | $ | 0.94 | ||||||||
| Reconciliation of weighted-average shares outstanding: | ||||||||||||
| Basic weighted-average shares outstanding | 27,973 | 29,085 | ||||||||||
| Dilutive effect of stock-based awards | 661 | 711 | ||||||||||
| Diluted weighted-average shares outstanding | 28,634 | 29,796 | ||||||||||
| SLEEP NUMBER CORPORATION | ||||||||||||
| AND SUBSIDIARIES | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| (unaudited – in thousands, except per share amounts) | ||||||||||||
| Nine Months Ended | ||||||||||||
September 26, | % of | September 28, | % of | |||||||||
2020 | Net Sales | 2019 | Net Sales | |||||||||
| Net sales | $ | 1,288,659 | 100.0 | % | $ | 1,257,186 | 100.0 | % | ||||
| Cost of sales | 488,558 | 37.9 | % | 481,377 | 38.3 | % | ||||||
| Gross profit | 800,101 | 62.1 | % | 775,809 | 61.7 | % | ||||||
| Operating expenses: | ||||||||||||
| Sales and marketing | 549,483 | 42.6 | % | 568,799 | 45.2 | % | ||||||
| General and administrative | 111,915 | 8.7 | % | 102,466 | 8.2 | % | ||||||
| Research and development | 28,399 | 2.2 | % | 25,440 | 2.0 | % | ||||||
| Total operating expenses | 689,797 | 53.5 | % | 696,705 | 55.4 | % | ||||||
| Operating income | 110,304 | 8.6 | % | 79,104 | 6.3 | % | ||||||
| Interest expense, net | 8,111 | 0.6 | % | 8,968 | 0.7 | % | ||||||
| Income before income taxes | 102,193 | 7.9 | % | 70,136 | 5.6 | % | ||||||
| Income tax expense | 24,363 | 1.9 | % | 12,384 | 1.0 | % | ||||||
| Net income | $ | 77,830 | 6.0 | % | $ | 57,752 | 4.6 | % | ||||
| Net income per share – basic | $ | 2.79 | $ | 1.93 | ||||||||
| Net income per share – diluted | $ | 2.73 | $ | 1.88 | ||||||||
| Reconciliation of weighted-average shares outstanding: | ||||||||||||
| Basic weighted-average shares outstanding | 27,918 | 29,859 | ||||||||||
| Dilutive effect of stock-based awards | 642 | 829 | ||||||||||
| Diluted weighted-average shares outstanding | 28,560 | 30,688 | ||||||||||
| SLEEP NUMBER CORPORATION | ||||||||
| AND SUBSIDIARIES | ||||||||
| Consolidated Balance Sheets | ||||||||
| (unaudited – in thousands, except per share amounts) | ||||||||
| subject to reclassification | ||||||||
September 26, | December 28, | |||||||
2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,365 | $ | 1,593 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $823 and $898, respectively | 32,688 | 19,978 | ||||||
| Inventories | 83,258 | 87,065 | ||||||
| Prepaid expenses | 10,923 | 15,335 | ||||||
| Other current assets | 36,127 | 36,397 | ||||||
| Total current assets | 164,361 | 160,368 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 178,482 | 197,421 | ||||||
| Operating lease right-of-use assets | 311,179 | 327,017 | ||||||
| Goodwill and intangible assets, net | 73,508 | 73,226 | ||||||
| Other non-current assets | 52,587 | 48,011 | ||||||
| Total assets | $ | 780,117 | $ | 806,043 | ||||
| Liabilities and Shareholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Borrowings under credit facility | $ | 33,500 | $ | 231,000 | ||||
| Accounts payable | 167,139 | 134,594 | ||||||
| Customer prepayments | 75,043 | 34,248 | ||||||
| Accrued sales returns | 24,085 | 19,809 | ||||||
| Compensation and benefits | 61,751 | 40,321 | ||||||
| Taxes and withholding | 32,030 | 22,171 | ||||||
| Operating lease liabilities | 60,561 | 59,561 | ||||||
| Other current liabilities | 58,449 | 53,070 | ||||||
| Total current liabilities | 512,558 | 594,774 | ||||||
| Non-current liabilities: | ||||||||
| Deferred income taxes | 7,037 | 3,808 | ||||||
| Operating lease liabilities | 281,733 | 298,090 | ||||||
| Other non-current liabilities | 81,616 | 68,802 | ||||||
| Total non-current liabilities | 370,386 | 370,700 | ||||||
| Total liabilities | 882,944 | 965,474 | ||||||
| Shareholders’ deficit: | ||||||||
| Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding | - | - | ||||||
| Common stock, $0.01 par value; 142,500 shares authorized, 27,757 and 27,961 shares issued and outstanding, respectively | 278 | 280 | ||||||
| Additional paid-in capital | 14,390 | - | ||||||
| Accumulated deficit | (117,495 | ) | (159,711 | ) | ||||
| Total shareholders’ deficit | (102,827 | ) | (159,431 | ) | ||||
| Total liabilities and shareholders’ deficit | $ | 780,117 | $ | 806,043 | ||||
| SLEEP NUMBER CORPORATION | ||||||||
| AND SUBSIDIARIES | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (unaudited - in thousands) | ||||||||
| subject to reclassification | ||||||||
| Nine Months Ended | ||||||||
September 26, | September 28, | |||||||
2020 | 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 77,830 | $ | 57,752 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 46,244 | 46,267 | ||||||
| Stock-based compensation | 15,554 | 12,034 | ||||||
| Net loss (gain) on disposals and impairments of assets | 208 | (409 | ) | |||||
| Deferred income taxes | 3,229 | (895 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (12,710 | ) | (746 | ) | ||||
| Inventories | 3,807 | (1,626 | ) | |||||
| Income taxes | 5,103 | 535 | ||||||
| Prepaid expenses and other assets | 3,666 | (8,065 | ) | |||||
| Accounts payable | 58,547 | 45,051 | ||||||
| Customer prepayments | 40,795 | 12,758 | ||||||
| Accrued compensation and benefits | 21,376 | 11,763 | ||||||
| Other taxes and withholding | 4,756 | 5,784 | ||||||
| Other accruals and liabilities | 18,877 | 9,629 | ||||||
| Net cash provided by operating activities | 287,282 | 189,832 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (28,074 | ) | (46,757 | ) | ||||
| Proceeds from sales of property and equipment | 53 | 2,577 | ||||||
| Purchase of intangible assets | (945 | ) | - | |||||
| Net cash used in investing activities | (28,966 | ) | (44,180 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net decrease in short-term borrowings | (220,968 | ) | (11,270 | ) | ||||
| Repurchases of common stock | (41,923 | ) | (139,178 | ) | ||||
| Proceeds from issuance of common stock | 4,650 | 5,752 | ||||||
| Debt issuance costs | (303 | ) | (1,023 | ) | ||||
| Net cash used in financing activities | (258,544 | ) | (145,719 | ) | ||||
| Net decrease in cash and cash equivalents | (228 | ) | (67 | ) | ||||
| Cash and cash equivalents, at beginning of period | 1,593 | 1,612 | ||||||
| Cash and cash equivalents, at end of period | $ | 1,365 | $ | 1,545 | ||||
| SLEEP NUMBER CORPORATION | ||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, | September 28, | September 26, | September 28, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
| Percent of sales: | ||||||||||||||||
| Retail | 86.0 | % | 92.2 | % | 85.2 | % | 92.1 | % | ||||||||
| Online and phone | 13.7 | % | 7.3 | % | 14.5 | % | 7.2 | % | ||||||||
| Wholesale/other | 0.3 | % | 0.5 | % | 0.3 | % | 0.7 | % | ||||||||
| Total Company | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Sales change rates: | ||||||||||||||||
| Retail comparable-store sales | 2 | % | 9 | % | (8 | %) | 7 | % | ||||||||
| Online and phone | 111 | % | 20 | % | 109 | % | 10 | % | ||||||||
| Total Retail comparable sales change | 11 | % | 10 | % | 1 | % | 8 | % | ||||||||
| Net opened/closed stores | 1 | % | 4 | % | 2 | % | 5 | % | ||||||||
| Total Retail | 12 | % | 14 | % | 3 | % | 13 | % | ||||||||
| Wholesale/other | (28 | %) | 8 | % | (60 | %) | (17 | %) | ||||||||
| Total Company | 12 | % | 14 | % | 3 | % | 12 | % | ||||||||
| Stores open: | ||||||||||||||||
| Beginning of period | 598 | 594 | 611 | 579 | ||||||||||||
| Opened | 6 | 15 | 20 | 47 | ||||||||||||
| Closed | (8 | ) | (7 | ) | (35 | ) | (24 | ) | ||||||||
| End of period | 596 | 602 | 596 | 602 | ||||||||||||
| Other metrics: | ||||||||||||||||
| Average sales per store ($ in 000's) 1 | $ | 2,920 | $ | 2,858 | ||||||||||||
| Average sales per square foot 1 | $ | 1,012 | $ | 1,029 | ||||||||||||
| Stores > $2 million net sales 2 | 64 | % | 70 | % | ||||||||||||
| Stores > $3 million net sales 2 | 26 | % | 28 | % | ||||||||||||
| Average revenue per mattress unit 3 | $ | 4,802 | $ | 4,788 | $ | 4,824 | $ | 4,837 | ||||||||
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 and phone sales). | |||||||||||
3 | Represents Total Retail net sales divided by Total Retail mattress 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 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 | |||||||||||
| September 26, | September 28, | September 26, | September 28, | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
| Net income | $ | 51,320 | $ | 28,054 | $ | 101,923 | $ | 84,742 | ||||
| Income tax expense | 16,468 | 7,967 | 30,642 | 21,421 | ||||||||
| Interest expense | 1,829 | 3,131 | 10,829 | 11,064 | ||||||||
| Depreciation and amortization | 15,083 | 14,963 | 61,071 | 61,155 | ||||||||
| Stock-based compensation | 8,470 | 4,146 | 20,177 | 13,348 | ||||||||
| Asset impairments | 11 | 29 | 276 | 150 | ||||||||
| Adjusted EBITDA | $ | 93,181 | $ | 58,290 | $ | 224,918 | $ | 191,880 | ||||
| Free Cash Flow | ||||||||||||
| (in thousands) | ||||||||||||
| Three Months Ended | Trailing Twelve Months Ended | |||||||||||
| September 26, | September 28, | September 26, | September 28, | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
| Net cash provided by operating activities | $ | 200,281 | $ | 119,485 | $ | 286,610 | $ | 186,922 | ||||
| Subtract: Purchases of property and equipment | 6,379 | 12,861 | 40,556 | 58,260 | ||||||||
| Free cash flow | $ | 193,902 | $ | 106,624 | $ | 246,054 | $ | 128,662 | ||||
| Calculation of Net Leverage Ratio under Credit Facility | ||||||||||||
| (in thousands) | ||||||||||||
| Trailing Twelve Months Ended | ||||||||||||
| September 26, | September 28, | |||||||||||
2020 | 2019 | |||||||||||
| Borrowings under credit facility | $ | 33,500 | $ | 213,700 | ||||||||
| Outstanding letters of credit | 3,997 | 3,497 | ||||||||||
| Finance lease obligations | 677 | 783 | ||||||||||
| Consolidated funded indebtedness | $ | 38,174 | $ | 217,980 | ||||||||
| Capitalized operating lease obligations1 | 546,850 | 514,921 | ||||||||||
| Total debt including capitalized operating lease obligations (a) | $ | 585,024 | $ | 732,901 | ||||||||
| Adjusted EBITDA (see above) | $ | 224,918 | $ | 191,880 | ||||||||
| Consolidated rent expense | 91,142 | 85,807 | ||||||||||
| Consolidated EBITDAR (b) | $ | 316,060 | $ | 277,687 | ||||||||
| Net Leverage Ratio under credit facility (a divided by b) | 1.9 to 1.0 | 2.6 to 1.0 | ||||||||||
1 A multiple of six times annual rent expense is used as an estimate for capitalizing our operating lease obligations in accordance with our credit facility. | ||||||||||
| Note - Our Adjusted EBITDA and EBITDAR calculations, Free Cash Flow data and Calculation of Net Leverage Ratio under Credit Facility 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 (ROIC) | ||||||
| (in thousands) | ||||||
| ROIC is a financial measure we use to determine how efficiently we deploy our capital. It quantifies the return we earn on our invested capital. Management believes ROIC is also a useful metric for investors and financial analysts. We compute ROIC as outlined below. Our definition and calculation of ROIC may not be comparable to similarly titled definitions and calculations used by other companies. The tables below reconcile net operating profit after taxes (NOPAT) and total invested capital, which are non-GAAP financial measures, to the comparable GAAP financial measures: | ||||||
| Trailing Twelve Months Ended | ||||||||
| September 26, 2020 | September 28, 2019 | |||||||
| Net operating profit after taxes (NOPAT) | ||||||||
| Operating income | $ | 143,295 | $ | 117,224 | ||||
| Add: Rent expense 1 | 91,142 | 85,807 | ||||||
| Add: Interest income | 97 | 4 | ||||||
| Less: Depreciation on capitalized operating leases 2 | (23,700 | ) | (21,821 | ) | ||||
| Less: Income taxes 3 | (50,584 | ) | (44,298 | ) | ||||
| NOPAT | $ | 160,250 | $ | 136,916 | ||||
| Average invested capital | ||||||||
| Total deficit | $ | (102,827 | ) | $ | (164,487 | ) | ||
| Add: Long-term debt 4 | 34,177 | 214,482 | ||||||
| Add: Capitalized operating lease obligations 5 | 729,136 | 686,456 | ||||||
| Total invested capital at end of period | $ | 660,486 | $ | 736,451 | ||||
| Average invested capital 6 | $ | 770,197 | $ | 743,271 | ||||
| Return on invested capital (ROIC) 7 | 20.8 | % | 18.4 | % | ||||
1 | Rent expense is added back to operating income to show the impact of owning versus leasing the related assets. | |||||||||||
2 | Depreciation is based on the average of the last five fiscal quarters' ending capitalized operating lease obligations (see note 5) for the respective reporting periods with an assumed thirty-year useful life. This life assumption is based on our long-term participation in given markets though specific retail location lease commitments are generally 5 to 10 years at inception. This is subtracted from operating income to illustrate the impact of owning versus leasing the related assets. | |||||||||||
3 | Reflects annual effective income tax rates, before discrete adjustments, of 24.0% and 24.4% for 2020 and 2019, respectively. | |||||||||||
4 | Long-term debt includes existing finance lease liabilities. | |||||||||||
5 | A multiple of eight times annual rent expense is used as an estimate for capitalizing our operating lease obligations. The methodology utilized aligns with the methodology of a nationally recognized credit rating agency. | |||||||||||
6 | Average invested capital represents the average of the last five fiscal quarters' ending invested capital balances. | |||||||||||
7 | ROIC equals NOPAT divided by average invested capital. | |||||||||||
| Note - | Our 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/20201014005810/en/
Contacts:
Media Contact: Julie Elepano; (414) 732-9840; julie.elepano@sleepnumber.com
