Sleep Number Corp (SNBR) 10K Annual Reports & 10Q SEC Filings

•Fourth-quarter demand increased high-single digits over prior-year demand (adjusted for extra fiscal week last year); a late receipt of semiconductor components from a large global supplier delayed more than $125 million of delivered net sales

•Full-year net sales grew to a record $2.18 billion with full-year diluted earnings per share (EPS) of $6.16

•Generated record operating cash flows of $300 million for the year and full-year ROIC of 27.6%

•Provides 2022 outlook for a 10-15% increase in diluted EPS versus 2021, including constrained first quarter

MINNEAPOLIS – (February 23, 2022) – Sleep Number Corporation (Nasdaq: SNBR) today reported results for the year ended January 1, 2022.

“Strong demand for Sleep Number’s 360 smart beds again drove record earnings in 2021, even with pandemic-induced global supply chain disruptions,” said Shelly Ibach, President and CEO. “The fourth quarter proved to be the most challenging as we received semiconductor components too late in December to fulfill our planned deliveries. Global electronics supplies remain constrained in the near-term, while demand for our 360 smart beds remains strong, reflecting increased consumer engagement and referrals from more than two million connected smart sleepers. We continue to focus on delivering long-term stakeholder value to build upon our 5-year EPS CAGR of 41% through 2021.”

Fourth Quarter Overview

•Net sales decreased 13% to $492 million (-7% adjusted); with a late December receipt of semiconductor components constraining delivered net sales by more than $125 million (about two and half weeks of deliveries)

•Diluted EPS of $0.47 for the fourth quarter, compared to $2.19 for the same period last year, or $1.89 excluding the 53rd week

•Fiscal 2020 included a 53rd week in the fourth quarter, which we estimate added approximately $41 million in net sales, $11.2 million in operating income and $0.30 of diluted EPS

Full Year Overview

•Net sales increased 18% (+20% adjusted) to $2.18 billion in 2021, including a 17% comparable sales gain; up 29% compared to 2019

•Gross profit increased 14% (+17% adjusted) to $1.32 billion, or 60.4% of net sales, while offsetting significant input cost increases with pricing actions and efficiency gains; up 25% compared to 2019

•Operating income increased 5% (+11% adjusted) to $194 million; up 73% compared to 2019

•Diluted EPS increased 26% (+34% adjusted) to a record $6.16; up 128% compared to 2019

Cash Flows and Liquidity Review

•Generated $300 million in net cash from operating activities, up 7% versus last year and 59% higher than 2019

•Invested $67 million in capital expenditures and repurchased $364 million of Sleep Number stock during 2021

•Leverage ratio of 2.6x EBITDAR at the end of 2021

•Return on invested capital (ROIC) of 27.6% for the year, up 260 bp versus prior year and nearly four times our weighted-average cost of capital

Financial Outlook

The company expects full-year 2022 diluted EPS to increase 10 to 15% versus 2021. The outlook for 2022 assumes continued global electronics supply constraints with the greatest impact expected in the first quarter. Accordingly, the 2022 outlook assumes first quarter EPS of 30 to 40 cents with EPS growth of approximately 80% expected for the last nine months of the year. The company anticipates 2022 capital expenditures of $70 million to $80 million.

The following information was filed by Sleep Number Corp (SNBR) on Wednesday, February 23, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Sleep Number Corp's 10-K Annual Report:

Financial - Earnings Highlight
Significant components of the $20 million year-over-year increase in cash from operating activities included: (i) a $15 million increase in net income in 2021 compared with 2020; (ii) a $71 million fluctuation in accounts payable with both years impacted by business changes and timing of payments; (iii) a $62 million fluctuation in the amount of compensation and benefits accrued and timing of the related payments resulting from year-over-year changes in Company-wide performance-based incentive compensation; and (iv) a $30 million change in inventories with both years' changes in inventory balances driven by forecasted future customer demand and anticipated supply chain constraints.

Financial - Expense Highlight
In addition, the 2021 balance included $10 million higher purchase costs due to rapid inflation pressures and increased inbound transportation expenses.
Other - Other Highlight
Significant changes in cash and cash equivalents during 2021 included $300 million of cash provided by operating activities and $145 million increase in short-term borrowings, which were offset by $67 million of cash used to purchase property and equipment, and $382 million of cash used to repurchase our common stock.
Financial - Income Highlight
2021 operating income of $194 million increased by $9 million, or 5%, compared with $185 million in the prior year, driven by the strong increase in net sales.
Other - Other Highlight
And because our more than 5,500 team members are dedicated to our mission as well as the disciplined execution of our vertically integrated business model and differentiated strategy, Sleep Number is at the forefront of sleep innovation.
Financial - Earnings
Net income per diluted share...Read more
Financial - Cash Flow
Our primary sources of liquidity...Read more
Financial - Earnings
Together with our expertise in...Read more
Other - Other
Financial Statements and Supplementary Data...Read more
Financial - Expense
The G&A expenses rate decreased...Read more
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; partially offset by (ii)...Read more
Financial - Shares
We also replenished our outstanding...Read more
Other - Other
However, if actual results are...Read more
Other - Other
Cash provided by operating activities...Read more
Revenue - Product
The 18% net sales increase...Read more
Other - Other
With our enterprise-wide investments in...Read more
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The sales and marketing expense...Read more
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The $2 million increase in...Read more
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Sales per store in 2021...Read more
Financial - Earnings
decrease in the gross profit...Read more
Revenue - Product
Average revenue per smart bed...Read more
Revenue - Product
Total Retail comparable sales increased...Read more
Revenue - Product
The number of retail stores...Read more
Financial - Earnings
Diluted earnings per share for...Read more
Revenue - Product
Results of Operations Fiscal 2021...Read more
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Online, phone and chat sales...Read more
Financial - Expense
Interest expense, net Interest expense,...Read more
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The effective income tax rate...Read more
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The $328 million net sales...Read more
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For additional details, see the...Read more
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Total Retail smart bed unit...Read more
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Net income in 2021 increased...Read more
Other - Other
Short-term borrowings increased by $145...Read more
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Research and development expenses Research...Read more
Other - Other
To date, we have improved...Read more
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in 2021, compared with 2020...Read more
Other - Other
Efficiency gains and operating initiatives...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Sleep Number Corp provided additional information to their SEC Filing as exhibits

Exhibit 10.35: Material Contract

Exhibit 10.36: Material Contract

Exhibit 10.48: Material Contract

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: SNBR
CIK: 827187
Form Type: 10-K Annual Report
Accession Number: 0000827187-22-000012
Submitted to the SEC: Tue Mar 01 2022 4:28:28 PM EST
Accepted by the SEC: Tue Mar 01 2022
Period: Saturday, January 1, 2022
Industry: Household Furniture