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Sleep Number Corp (SNBR) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 28, 2019

Sleep Number Corp

CIK: 827187 Ticker: SNBR

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Sleep Number Announces RECORD Fourth-Quarter AND Full-YEAR 2019 Results

 

2019 full-year net sales up 11% to a record $1.7 billion

Full-year diluted EPS up 41% to $2.70

Operating cash flows increased 44% to $189 million; generated 17.8% ROIC for the year

Provides 2020 earnings outlook of $3.10 per diluted share, an increase of 15% versus 2019

 

MINNEAPOLIS – (February 19, 2020) – Sleep Number Corporation (Nasdaq: SNBR) today reported record results for the year ended December 28, 2019.

 

“Consumer response to our revolutionary 360® smart beds has been exceptional, driving six consecutive quarters of double-digit demand growth, including acceleration in the fourth quarter,” stated Shelly Ibach, President and CEO. “Our differentiated, consumer innovation strategy drove record results again in 2019, including an 11% net sales increase to $1.7 billion and a 41% increase in diluted EPS to $2.70 per share. We begin the next chapter of our strategic journey as a purpose driven company in the health and wellness space. Executing our ambitious vision, while investing to ensure broad consumer relevance is delivering superior returns for our shareholders.”

 

Full Year Overview

Net sales increased 11% to $1.7 billion in 2019, including a 6% comparable sales gain and 5 percentage points of growth from new stores

 

Gross profit rate increased 130 basis points (bp) to 61.9% of net sales

Operating income increased 21% to $112 million, or 6.6% of net sales, up 60 bp versus prior year, while investing in our near- and long-term growth drivers

 

Earnings per diluted share increased 41% to $2.70

 

 

Fourth Quarter Overview

Net sales increased 7% (up 14% versus prior year adjusted) to $441 million

 

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  

Earnings per diluted share of $0.82, compared with $0.81 for the prior year ($0.58 prior year adjusted)

 

2019 Full Year Cash Flows and Liquidity Review

Generated a record $189 million in net cash from operating activities, up 44% versus the prior year

 

Invested $59 million in capital expenditures, compared with $46 million for the prior year

 

Acquired $146 million of SNBR stock in 2019, bringing total cash returned to shareholders to $843 million over the past six years; $475 million remaining under our share repurchase authorization

 

Ended the year with a leverage ratio of 2.7x EBITDAR; continue to operate with a targeted range of 2.5x to 3.0x EBITDAR with seasonal fluctuations expected

 

Return on invested capital (ROIC) was 17.8% for the year, up 180 bp versus 2018

 

Financial Outlook

The company expects to generate full-year 2020 earnings per diluted share of $3.10, a 15% increase versus full-year 2019 earnings per diluted share of $2.70. The outlook assumes high-single digit net sales growth for 2020, including the benefit of an extra fiscal week. The outlook assumes an estimated effective income tax rate of approximately 22% (including an estimated $3 million of excess tax benefits related to stock-based compensation), compared to 18.6% for 2019. The company anticipates 2020 capital expenditures to be approximately $60 million.

 


The following information was filed by Sleep Number Corp (SNBR) on Wednesday, February 19, 2020 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 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 - Share Repurchases - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Stock-Based Compensation - Additional Information (Details)
Business And Summary Of Significant Accounting Policies - Warranty Liabilities (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)
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)
Interest Expense, Net
Interest Expense, Net (Tables)
Interest Expense, Net - Schedule Of Interest Expense, Net (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 (Details)
Leases - Schedule Of Lease Costs (Details)
Leases - Schedule Of Maturities Of Operating Lease Liabilities (Details)
Leases - Schedule Of Maturities Of Operating Lease Liabilities (Parenthetical) (Details)
Leases - Schedule Of Other Information Related Operating Leases (Details)
Leases - Schedule Of Rent Expense (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' Deficit - Additional Information (Details)
Shareholders' Deficit - Assumptions Used To Calculate Fair Value Of Options Granted Using Black-Scholes-Merton Option-Pricing Model (Details)
Shareholders' Deficit - Assumptions Used To Calculate Fair Value Of Performance-Based Stock Awards Using Monte Carlo Simulation Model (Details)
Shareholders' Deficit - Components Of Basic And Diluted Net Income Per Share (Details)
Shareholders' Deficit - Other Information Pertaining To Options (Details)
Shareholders' Deficit - Repurchase Of Common Stock - Additional Information (Details)
Shareholders' Deficit - Schedule Of Repurchase Of Common Stock (Details)
Shareholders' Deficit - Schedule Of Stock-Based Compensation Expense (Details)
Shareholders' Deficit - Stock Award Activity (Details)
Shareholders' Deficit - Summary Of Stock Option Activity (Details)
Shareholders??? Deficit
Shareholders??? Deficit (Tables)
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: 0001564590-20-006396
Submitted to the SEC: Tue Feb 25 2020 4:14:15 PM EST
Accepted by the SEC: Tue Feb 25 2020
Period: Saturday, December 28, 2019
Industry: Household Furniture

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