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Sleep Number Corp (SNBR) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 28, 2019

Sleep Number Corp

CIK: 827187 Ticker: SNBR

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Sleep Number Announces RECORD THIRD Quarter 2019 Results and RAISES EARNINGS Outlook

Third quarter net sales grew 14%, with a 10% comp gain and diluted EPS growth of 81%

Year-to-date net sales increased 12%, operating income grew 46% and diluted EPS increased 63%

Generated a 41% increase in year-to-date operating cash flows and a trailing twelve month ROIC of 18.4%

Full-year outlook raised to a range of $2.45 to $2.75 per diluted share, $2.60 at the midpoint

 

MINNEAPOLIS – (October 15, 2019

) – Sleep Number Corporation (Nasdaq: SNBR) today reported record results for the third quarter and year-to-date period ended September 28, 2019.

 

“Our revolutionary Sleep Number 360® smart beds are delivering life-changing sleep and drove double-digit demand growth on top of double-digit demand growth the prior year. Our multi-year initiatives are resulting in the sales and profit growth we anticipated,” stated Shelly Ibach, President and CEO. “We are creating a future where our 360® smart bed will be the hub for consumers’ health and wellness with individualized digital health as core to our business.”

 

Third Quarter Overview

Net sales increased 14% to a record $475 million, including a 10% comparable sales gain

 

Prior year’s reported results were impacted by one week of deliveries ($24 million of net sales and 23 cents of EPS) which shifted from the third to the fourth quarter; refer to the Reconciliation of Non-GAAP Financial Measures tables on page 10 of our fourth quarter 2018 earnings press release  

Gross profit rate increased 200 basis points to 62.4% of net sales compared with 60.4% for the same period last year

Operating income increased 55% to $39 million, or 8.2% of net sales, up 210 basis points versus the prior year’s third quarter

Earnings per diluted share increased 81% to $0.94, compared with $0.52 for the prior year

 

Cash Flows and Liquidity Review

Generated $190 million in net cash from operating activities year to date, up 41% versus the same period last year

 

Invested $47 million in capital expenditures year to date of the $60 million expected for 2019

 

Returned $121 million to shareholders year to date through share repurchases, out of approximately $145 million expected for 2019

 

Announced replenishment of $500 million share repurchase authorization effective the beginning of the fiscal fourth quarter

 

Ended the third quarter with a leverage ratio of 2.6x EBITDAR; continue to operate with a targeted range of 2.5x to 3.0x EBITDAR with seasonal fluctuations expected

 

Return on invested capital increased 470 basis points year over year to 18.4% for the trailing twelve month period

 

 

Financial Outlook

The company raised its 2019 earnings per diluted share outlook to a range of $2.45 to $2.75. The outlook includes up to 10% net sales growth for the full-year and a 25% effective income tax rate for the fourth quarter.

 


The following information was filed by Sleep Number Corp (SNBR) on Tuesday, October 15, 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-Q Quarterly 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-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Condensed Consolidated Statements Of Operations (Unaudited)
Condensed Consolidated Statements Of Shareholders' (Deficit) Equity (Unaudited)
Business And Summary Of Significant Accounting Policies
Business And Summary Of Significant Accounting Policies (Policies)
Business And Summary Of Significant Accounting Policies - New Accounting Pronouncements - Additional Information (Details)
Commitments And Contingencies
Commitments And Contingencies (Tables)
Commitments And Contingencies Warranty Liabilities (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 - Additional Information 1 (Details)
Goodwill And Intangible Assets, Net - Additional Information 2 (Details)
Inventories
Inventories (Tables)
Inventories - Schedule Of Inventories (Details)
Leases
Leases (Tables)
Leases - Additional Information (Details)
Leases - Schedule Of Maturities Of Operating Lease Liabilities And Aggregate Future Commitments Under Operating Leases (Details)
Leases - Schedule Of Maturities Of Operating Lease Liabilities And Aggregate Future Commitments Under Operating Leases (Parenthetical) (Details)
Leases - Schedule Of Operating Lease Costs (Details)
Leases - Schedule Of Other Information Related Operating Leases (Details)
Net Income Per Common Share
Net Income Per Common Share (Tables)
Net Income Per Common Share - Components Of Basic And Diluted Net Income Per Share (Details)
Profit Sharing And 401(K) Plan
Profit Sharing And 401(K) Plan - Additional Information (Details)
Repurchases Of Common Stock
Repurchases Of Common Stock (Tables)
Repurchases Of Common Stock - Additional Information (Details)
Repurchases Of Common Stock - Schedule Of Repurchase Of Common Stock (Details)
Revenue Recognition
Revenue Recognition (Tables)
Revenue Recognition - Additional Information (Details)
Revenue Recognition - Disaggregation Of Revenue (Details)
Revenue Recognition - Schedule Of Deferred Contract Assets And Deferred Contract Liabilities (Details)
Revenue Recognition - Schedule Of Sales Return Liability (Details)
Stock-Based Compensation Expense
Stock-Based Compensation Expense (Tables)
Stock-Based Compensation Expense - Schedule Of Stock-Based Compensation Expense (Details)
Ticker: SNBR
CIK: 827187
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-19-037917
Submitted to the SEC: Fri Oct 25 2019 4:13:34 PM EST
Accepted by the SEC: Fri Oct 25 2019
Period: Saturday, September 28, 2019
Industry: Household Furniture

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