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Sleep Number Corp (SNBR) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 29, 2018

Sleep Number Corp

CIK: 827187 Ticker: SNBR

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Sleep Number Announces RECORD Fourth-Quarter AND Full-YEAR 2018 Results

  

Fourth-quarter net sales grew 13% to $412 million, with full-year net sales up 6% to a record $1.53 billion

Fourth-quarter EPS grew 108% to $0.81, with full-year EPS up 24% to $1.92

Revolving credit facility increased from $300 million to $450 million

Provides 2019 earnings outlook of $2.25 to $2.75 per diluted share, an increase of 17% to 43% versus 2018

  

MINNEAPOLIS – (February 13, 2019

) – Sleep Number Corporation (NASDAQ: SNBR) today reported record results for the year ended December 29, 2018.

  

Fourth-quarter Statement of Operations Review

Net sales increased 13% (up 11% adjusted); net sales for the second half of 2018 increased 8% (up 12% adjusted); see Reconciliation of Non-GAAP Financial Measures tables on page 10

Operating income increased to $38 million, or 9.3% of net sales, a 380 basis-point rate improvement versus the prior year’s fourth quarter

 

Earnings per diluted share increased 108% to $0.81 (up 76% adjusted); earnings per diluted share for the second half of 2018 increased 31% (up 48% adjusted); see Reconciliation of Non-GAAP Financial Measures tables on page 10

  

“Our purpose-driven brand and our revolutionary new 360® smart beds are driving enthusiastic consumer engagement and accelerated performance, including 12% adjusted net sales growth and 48% adjusted EPS growth for the second half of 2018,” stated Shelly Ibach, President and CEO. “We expect this trajectory to continue in 2019 as we advance our initiatives to drive demand, leverage our business model and deploy capital efficiently.”

  

Full-year Statement of Operations Review

Net sales increased 6% to $1.53 billion in 2018, including a 3% comparable sales gain and 3 percentage points of growth from new stores

 

Operating income increased to $92 million, or 6.0% of net sales, while absorbing approximately $16 million of 360 smart bed transition impacts

 

Earnings per diluted share increased 24% to $1.92, compared with $1.55 for 2017

 

  

Cash Flows and Balance Sheet Review

Generated $132 million of operating cash flows in 2018

 

Invested $46 million in capital expenditures, with $481 million of capital invested in the business over the past six years, in addition to building essential infrastructure and growth driving capabilities

 

Increased share repurchases 86% to $279 million in 2018, bringing total cash returned to shareholders to $738 million over the past six years

 

As of December 29, 2018, the remaining authorization under our Board-approved share repurchase program was $186 million which is sufficient to support 2019 planned repurchases of $125 to $145 million

 

Return on invested capital (ROIC) was 16.0% for the year, which compares favorably to our high single-digit weighted average cost of capital

On February 11, 2019, we amended our revolving credit facility to increase our aggregate availability from $300 million to $450 million. The credit agreement matures in February 2024

  

Financial Outlook

The company expects to generate full-year 2019 earnings per diluted share of between $2.25 and $2.75, a 17% to 43% increase versus full-year 2018 earnings per diluted share of $1.92. The outlook assumes 6% to 10% net sales growth for 2019. The 2019 outlook assumes an estimated effective income tax rate of 24.5%, compared to 19.6% for 2018. The company anticipates 2019 capital expenditures to be $50 to $60 million.

 


The following information was filed by Sleep Number Corp (SNBR) on Wednesday, February 13, 2019 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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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Operations
Consolidated Statements Of Shareholders' (Deficit) Equity
Business And Summary Of Significant Accounting Policies
Business And Summary Of Significant Accounting Policies (Policies)
Business And Summary Of Significant Accounting Policies (Tables)
Business And Summary Of Significant Accounting Policies - Advertising Costs - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Cash And Cash Equivalents - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Definite-Lived Intangible Assets - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Dividends - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Fiscal Year - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Insurance - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - New Accounting Pronouncements - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Operating Leases - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Operating Leases - Summary Of Deferred Lease Incentives (Details)
Business And Summary Of Significant Accounting Policies - Operating Leases - Summary Of Deferred Rent (Details)
Business And Summary Of Significant Accounting Policies - Schedule Of Product Warranty Liability (Details)
Business And Summary Of Significant Accounting Policies - Stock-Based Compensation - Additional Information (Details)
Business And Summary Of Significant Accounting Policies Property And Equipment - Estimated Useful Lives Of Property And Equipment (Details)
Commitments And Contingencies
Commitments And Contingencies (Details)
Credit Agreement
Credit Agreement (Tables)
Credit Agreement - Additional Information (Details)
Credit Agreement - Schedule Of Borrowings Under Credit Facility (Details)
Fair Value Measurements
Fair Value Measurements (Details)
Goodwill And Intangible Assets, Net
Goodwill And Intangible Assets, Net (Tables)
Goodwill And Intangible Assets, Net - Additional Information (Details)
Goodwill And Intangible Assets, Net - Schedule Of Annual Amortization For Definite-Lived Intangible Assets (Details)
Goodwill And Intangible Assets, Net - Schedule Of Gross Carrying Amount And Related Accumulated Amortization Of Our Definite-Lived Intangible Assets (Details)
Income Taxes
Income Taxes (Tables)
Income Taxes - Additional Information (Details)
Income Taxes - Reconciliation Of Income Tax Expense (Benefit) At The Statutory Federal Rate (Details)
Income Taxes - Summary Of Deferred Income Taxes (Details)
Income Taxes - Summary Of Income Tax Expense (Benefit) (Details)
Income Taxes - Summary Of Reconciliations Unrecognized Tax Benefits (Details)
Inventories
Inventories (Tables)
Inventories - Schedule Of Finished Goods Inventories (Details)
Inventories - Schedule Of Inventories (Details)
Leases
Leases (Tables)
Leases - Additional Information (Details)
Leases - Schedule Of Aggregate Minimum Rental Commitments Under Operating Leases For Subsequent Years (Details)
Leases - Schedule Of Rent Expense (Details)
Other (Expense) Income, Net
Other (Expense) Income, Net (Tables)
Other (Expense) Income, Net - Schedule Of Other (Expense) Income, Net (Details)
Profit Sharing And 401(K) Plan
Profit Sharing And 401(K) Plan - Additional Information (Details)
Property And Equipment
Property And Equipment (Details)
Property And Equipment (Tables)
Revenue Recognition
Revenue Recognition (Tables)
Revenue Recognition - Additional Information (Details)
Revenue Recognition - Disaggregation Of Revenue (Details)
Revenue Recognition - Schedule Of Deferred Contract Liabilities And Deferred Contract Assets (Details)
Revenue Recognition - Schedule Of Sales Return Liability (Details)
Schedule Ii - Valuation And Qualifying Accounts
Schedule Ii - Valuation And Qualifying Accounts (Details)
Shareholders' Equity
Shareholders' Equity (Tables)
Shareholders' Equity - Additional Information (Details)
Shareholders' Equity - Assumptions Used To Calculate Fair Value Of Market-Based Stock Options Granted Using Monte Carlo Simulation Model (Details)
Shareholders' Equity - Assumptions Used To Calculate Fair Value Of Options Granted Using Black-Scholes-Merton Option-Pricing Model (Details)
Shareholders' Equity - Assumptions Used To Calculate Fair Value Of Performance-Based Stock Awards Using Monte Carlo Simulation Model (Details)
Shareholders' Equity - Components Of Basic And Diluted Net Income Per Share (Details)
Shareholders' Equity - Other Information Pertaining To Options (Details)
Shareholders' Equity - Repurchase Of Common Stock (Details)
Shareholders' Equity - Stock Award Activity (Details)
Shareholders' Equity - Stock-Based Compensation Expense (Details)
Shareholders' Equity - Summary Of Stock Option Activity (Details)
Summary Of Quarterly Financial Data (Unaudited)
Summary Of Quarterly Financial Data (Unaudited) (Details)
Summary Of Quarterly Financial Data (Unaudited) (Tables)
Ticker: SNBR
CIK: 827187
Form Type: 10-K Annual Report
Accession Number: 0001564590-19-004499
Submitted to the SEC: Tue Feb 26 2019 4:40:35 PM EST
Accepted by the SEC: Tue Feb 26 2019
Period: Saturday, December 29, 2018
Industry: Household Furniture

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