SharkNinja Reports Second Quarter 2024 Results
Raises Fiscal Year 2024 Outlook on Key Metrics
Highlights for the Second Quarter 2024 as compared to the Second Quarter 2023
-
Net sales increased 31.4% to
$1,248.7 million and AdjustedNet Sales increased 37.9% to$1,248.7 million . - Gross margin and Adjusted Gross Margin increased 630 and 570 basis points, respectively.
-
Net income increased 470.1% to
$68.0 million . Adjusted Net Income increased 52.9% to$99.6 million -
Adjusted EBITDA increased 47.6% to
$167.7 million , or 13.4% of AdjustedNet Sales .
Three Months Ended
Net sales increased 31.4% to
-
Cleaning Appliances net sales increased by
$52.3 million , or 12.6%, to$466.1 million , compared to$413.8 million in the prior year quarter. AdjustedNet Sales of Cleaning Appliances increased by$78.5 million , or 20.3%, from$387.6 million to$466.1 million , driven by the carpet extractor and cordless vacuums sub-categories. -
Cooking and Beverage Appliances net sales increased by
$36.2 million , or 10.6%, to$379.3 million , compared to$343.1 million in the prior year quarter. AdjustedNet Sales of Cooking and Beverage Appliances increased by$39.7 million , or 11.7%, from$339.6 million to$379.3 million , driven by growth inEurope . Global growth was supported by the success of the outdoor grill and outdoor oven across both the US and European markets. -
Food Preparation Appliances net sales increased by
$121.5 million , or 84.8%, to$264.9 million , compared to$143.4 million in the prior year quarter. AdjustedNet Sales of Food Preparation Appliances increased by$125.9 million , or 90.6%, from$139.0 million to$264.9 million , driven by strong sales of our ice cream makers and portable blenders. -
Net sales in the Other category increased by
$88.3 million , or 176.2%, to$138.4 million , compared to$50.1 million in the prior year quarter. AdjustedNet Sales in the Other category increased by$98.9 million , or 251.0%, from$39.4 million to$138.4 million , primarily driven by strength of haircare products, our FlexBreeze fans, and air purifiers.
Gross profit increased 51.4% to
Research and development expenses increased 47.6% to
Sales and marketing expenses increased 45.5% to
General and administrative expenses increased 44.3% to
Operating income increased 86.6% to
Net income increased 470.1% to
Adjusted Net Income increased 52.9% to
Adjusted EBITDA increased 47.6% to
Six Months Ended
Net sales increased 28.2% to
-
Cleaning Appliances net sales increased by
$59.4 million , or 7.2%, to$888.0 million , compared to$828.7 million during the same period last year. AdjustedNet Sales of Cleaning Appliances increased by$101.9 million , or 13.0%, from$786.1 million to$888.0 million , driven by the carpet extractor, cordless vacuums and robotics sub-categories. -
Cooking and Beverage Appliances net sales increased by
$109.2 million , or 18.2%, to$708.9 million , compared to$599.7 million during the same period last year. AdjustedNet Sales of Cooking and Beverage Appliances increased by$114.2 million , or 19.2%, from$594.8 million to$708.9 million , driven by growth inEurope . Global growth was supported by the success of the outdoor grill and outdoor oven across both the US and European markets. -
Food Preparation Appliances net sales increased by
$208.7 million , or 79.9%, to$469.9 million , compared to$261.2 million during the same period last year. AdjustedNet Sales of Food Preparation Appliances increased by$214.9 million , or 84.2%, from$255.1 million to$469.9 million , driven by strong sales of our ice cream makers and compact blenders, specifically our portable blenders. -
Net sales in the Other category increased by
$132.0 million , or 113.8%, to$248.0 million , compared to$116.0 million during the same period last year. AdjustedNet Sales in the Other category increased by$142.7 million or 135.5% from$105.3 million to$248.0 million , primarily driven by strength of haircare products, our FlexBreeze fans, and air purifiers.
Gross profit increased 41.4% to
Research and development expenses increased 33.3% to
Sales and marketing expenses increased 43.6% to
General and administrative expenses increased 37.6% to
Operating income increased 45.2% to
Net income increased 79.4% to
Adjusted Net Income increased 34.8% to
Adjusted EBITDA increased 36.5% to
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents decreased to
Inventories increased 20.1% to
Total debt, excluding unamortized deferred financing costs, was
Fiscal 2024 Outlook
For fiscal year 2024, SharkNinja is increasing its outlook on key metrics and now expects:
- Net sales to increase 20% to 22% compared to the prior expectation of 10% to 12%.
-
Adjusted
Net Sales to increase between 22% and 24% compared to the prior expectation of 12% to 14%. -
Adjusted Net Income per diluted share between
$4.05 and$4.21 , reflecting a 26% to 31% increase, compared to the prior expectation of between$3.66 and$3.82 , reflecting a 14% to 19% increase. -
Adjusted EBITDA between
$910 million and$940 million , reflecting a 26% to 31% increase, compared to the prior expectation of between$840 million and$870 million , reflecting a 17% to 21% increase. - A GAAP effective tax rate of approximately 24% to 25%.
- Diluted weighted average shares outstanding of approximately 141 million.
-
Capital expenditures of
$160 million to$180 million primarily to support investments in new product launches, technology, and incremental investments in tooling to support the diversification of our sourcing outside ofChina .
Conference Call Details
A conference call to discuss the second quarter 2024 financial results is scheduled for today,
About
Forward-looking statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our future business, financial condition, results of operations and prospects and Fiscal 2024 outlook. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates and projections about our industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which you should consider and read carefully, including but not limited to:
- our ability to maintain and strengthen our brands to generate and maintain ongoing demand for our products;
- our ability to commercialize a continuing stream of new products and line extensions that create demand;
- our ability to effectively manage our future growth;
- general economic conditions and the level of discretionary consumer spending;
- our ability to expand into additional consumer markets;
- our ability to maintain product quality and product performance at an acceptable cost;
- our ability to compete with existing and new competitors in our markets;
- problems with, or loss of, our supply chain or suppliers, or an inability to obtain raw materials;
- the risks associated with doing business globally;
- inflation, changes in the cost or availability of raw materials, energy, transportation and other necessary supplies and services;
- our ability to hire, integrate and retain highly skilled personnel;
- our ability to maintain, protect and enhance our intellectual property;
- our ability to securely maintain consumer and other third-party data;
- our ability to comply with ongoing regulatory requirements;
- the increased expenses associated with being a public company;
- our status as a “controlled company” within the meaning of the rules of NYSE;
- our ability to achieve some or all of the anticipated benefits of the separation; and
- the payment of any declared dividends.
This list of factors should not be construed as exhaustive and should be read in conjunction with those described in our Annual Report on Form 20-F filed with the
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands, except share and per share data) |
|||||||
(unaudited) |
|||||||
|
As of |
||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
138,138 |
|
|
$ |
154,061 |
|
Accounts receivable, net |
|
1,080,091 |
|
|
|
985,172 |
|
Inventories |
|
840,545 |
|
|
|
699,740 |
|
Prepaid expenses and other current assets |
|
103,638 |
|
|
|
58,311 |
|
Total current assets |
|
2,162,412 |
|
|
|
1,897,284 |
|
Property and equipment, net |
|
177,449 |
|
|
|
166,252 |
|
Operating lease right-of-use assets |
|
143,090 |
|
|
|
63,333 |
|
Intangible assets, net |
|
470,457 |
|
|
|
477,816 |
|
|
|
834,001 |
|
|
|
834,203 |
|
Deferred tax assets |
|
6,762 |
|
|
|
12 |
|
Other assets, noncurrent |
|
57,269 |
|
|
|
48,170 |
|
Total assets |
$ |
3,851,440 |
|
|
$ |
3,487,070 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
504,751 |
|
|
$ |
459,651 |
|
Accrued expenses and other current liabilities |
|
602,361 |
|
|
|
620,333 |
|
Tax payable |
|
11,143 |
|
|
|
20,991 |
|
Debt, current |
|
149,282 |
|
|
|
24,157 |
|
Total current liabilities |
|
1,267,537 |
|
|
|
1,125,132 |
|
Debt, noncurrent |
|
755,811 |
|
|
|
775,483 |
|
Operating lease liabilities, noncurrent |
|
145,517 |
|
|
|
63,043 |
|
Deferred tax liabilities |
|
5,780 |
|
|
|
16,500 |
|
Other liabilities, noncurrent |
|
30,752 |
|
|
|
28,019 |
|
Total liabilities |
|
2,205,397 |
|
|
|
2,008,177 |
|
Shareholders’ equity: |
|
|
|
||||
Ordinary shares, |
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
1,002,931 |
|
|
|
1,009,590 |
|
Retained earnings |
|
647,979 |
|
|
|
470,319 |
|
Accumulated other comprehensive loss |
|
(4,881 |
) |
|
|
(1,030 |
) |
Total shareholders’ equity |
|
1,646,043 |
|
|
|
1,478,893 |
|
Total liabilities and shareholders’ equity |
$ |
3,851,440 |
|
|
$ |
3,487,070 |
|
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales(1) |
$ |
1,248,658 |
|
|
$ |
950,312 |
|
|
$ |
2,314,886 |
|
|
$ |
1,805,594 |
|
Cost of sales |
|
647,759 |
|
|
|
553,391 |
|
|
|
1,187,370 |
|
|
|
1,008,130 |
|
Gross profit |
|
600,899 |
|
|
|
396,921 |
|
|
|
1,127,516 |
|
|
|
797,464 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
90,053 |
|
|
|
61,014 |
|
|
|
159,649 |
|
|
|
119,739 |
|
Sales and marketing |
|
303,185 |
|
|
|
208,316 |
|
|
|
517,753 |
|
|
|
360,436 |
|
General and administrative |
|
103,825 |
|
|
|
71,959 |
|
|
|
191,336 |
|
|
|
139,027 |
|
Total operating expenses |
|
497,063 |
|
|
|
341,289 |
|
|
|
868,738 |
|
|
|
619,202 |
|
Operating income |
|
103,836 |
|
|
|
55,632 |
|
|
|
258,778 |
|
|
|
178,262 |
|
Interest expense, net |
|
(14,844 |
) |
|
|
(7,031 |
) |
|
|
(29,566 |
) |
|
|
(15,520 |
) |
Other income (expense), net |
|
689 |
|
|
|
(32,670 |
) |
|
|
3,937 |
|
|
|
(35,450 |
) |
Income before income taxes |
|
89,681 |
|
|
|
15,931 |
|
|
|
233,149 |
|
|
|
127,292 |
|
Provision for income taxes |
|
21,633 |
|
|
|
3,995 |
|
|
|
55,489 |
|
|
|
28,260 |
|
Net income |
$ |
68,048 |
|
|
$ |
11,936 |
|
|
$ |
177,660 |
|
|
$ |
99,032 |
|
Net income per share, basic |
$ |
0.49 |
|
|
$ |
0.09 |
|
|
$ |
1.27 |
|
|
$ |
0.71 |
|
Net income per share, diluted |
$ |
0.48 |
|
|
$ |
0.09 |
|
|
$ |
1.26 |
|
|
$ |
0.71 |
|
Weighted-average number of shares used in computing net income per share, basic |
|
139,888,497 |
|
|
|
138,982,872 |
|
|
|
139,668,527 |
|
|
|
138,982,872 |
|
Weighted-average number of shares used in computing net income per share, diluted |
|
140,924,298 |
|
|
|
138,982,872 |
|
|
|
140,813,662 |
|
|
|
138,982,872 |
|
(1) |
Net sales in our product categories were as follows: |
|
Three Months Ended |
|
Six Months Ended |
||||||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Cleaning Appliances |
$ |
466,115 |
|
$ |
413,797 |
|
$ |
888,035 |
|
$ |
828,667 |
Cooking and Beverage Appliances |
|
379,277 |
|
|
343,050 |
|
|
708,918 |
|
|
599,732 |
Food Preparation Appliances |
|
264,911 |
|
|
143,376 |
|
|
469,948 |
|
|
261,224 |
Other |
|
138,355 |
|
|
50,089 |
|
|
247,985 |
|
|
115,971 |
Total net sales |
$ |
1,248,658 |
|
$ |
950,312 |
|
$ |
2,314,886 |
|
$ |
1,805,594 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Six Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
177,660 |
|
|
$ |
99,032 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
57,042 |
|
|
|
51,795 |
|
Share-based compensation |
|
33,556 |
|
|
|
3,165 |
|
Provision for credit losses |
|
2,525 |
|
|
|
1,218 |
|
Non-cash lease expense |
|
9,210 |
|
|
|
6,383 |
|
Deferred income taxes, net |
|
(17,469 |
) |
|
|
(5,864 |
) |
Other |
|
989 |
|
|
|
392 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(100,560 |
) |
|
|
(143,549 |
) |
Inventories |
|
(142,310 |
) |
|
|
16,008 |
|
Prepaid expenses and other assets |
|
(53,040 |
) |
|
|
78,613 |
|
Accounts payable |
|
47,026 |
|
|
|
33,605 |
|
Tax payable |
|
(9,848 |
) |
|
|
(1,326 |
) |
Operating lease liabilities |
|
(3,236 |
) |
|
|
(10,165 |
) |
Accrued expenses and other liabilities |
|
(21,476 |
) |
|
|
71,078 |
|
Net cash (used in) provided by operating activities |
|
(19,931 |
) |
|
|
200,385 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(53,801 |
) |
|
|
(46,273 |
) |
Purchase of intangible asset |
|
(4,761 |
) |
|
|
(1,120 |
) |
Capitalized internal-use software development |
|
(654 |
) |
|
|
(123 |
) |
Other investing activities, net |
|
— |
|
|
|
(300 |
) |
Net cash used in investing activities |
|
(59,216 |
) |
|
|
(47,816 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayment of debt |
|
(10,125 |
) |
|
|
(37,501 |
) |
Proceeds from borrowings under revolving credit facility |
|
115,000 |
|
|
|
— |
|
Distribution paid to Former Parent |
|
— |
|
|
|
(60,283 |
) |
Net ordinary shares withheld for taxes upon issuance of restricted stock units |
|
(40,215 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
64,660 |
|
|
|
(97,784 |
) |
Effect of exchange rates changes on cash |
|
(1,436 |
) |
|
|
6,031 |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(15,923 |
) |
|
|
60,816 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
154,061 |
|
|
|
218,770 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
138,138 |
|
|
$ |
279,586 |
|
Non-GAAP Financial Measures
In addition to the measures presented in our consolidated financial statements, we regularly review other financial measures, defined as non-GAAP financial measures by the
The key non-GAAP financial measures we consider are Adjusted
SharkNinja does not provide a reconciliation of forward-looking Adjusted Net Income and Adjusted EBITDA to GAAP net income or of Adjusted Net Income Per Share to net income per share, diluted because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliations, including, in particular, the realized and unrealized foreign currency gains or losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide forward-looking GAAP net income at this time. The amount of these deductions and additions may be material, and, therefore, could result in forward-looking GAAP net income being materially different or less than forward-looking Adjusted Net Income, Adjusted EBITDA, and Adjusted Net Income Per Share. See “Forward-looking statements” above.
We define Adjusted
The following table reconciles Adjusted
|
Three Months Ended |
|
Six Months Ended |
||||||||||
($ in thousands, except %) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||
Net sales |
$ |
1,248,658 |
|
$ |
950,312 |
|
|
$ |
2,314,886 |
|
$ |
1,805,594 |
|
Divested subsidiary net sales adjustment(1) |
|
— |
|
|
(44,700 |
) |
|
|
— |
|
|
(64,349 |
) |
Adjusted |
$ |
1,248,658 |
|
$ |
905,612 |
|
|
$ |
2,314,886 |
|
$ |
1,741,245 |
|
(1) |
Adjusted for net sales from SNJP and the APAC distribution channels for the three and six months ended |
|
|
||
(2) |
The following tables reconcile Adjusted |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||
($ in thousands, except %) |
Net sales |
|
Divested
|
|
Adjusted
|
|
Net sales |
|
Divested
|
|
Adjusted
|
|||||||
Cleaning Appliances |
$ |
466,115 |
|
$ |
— |
|
$ |
466,115 |
|
$ |
413,797 |
|
$ |
(26,177 |
) |
|
$ |
387,620 |
Cooking and Beverage Appliances |
|
379,277 |
|
|
— |
|
|
379,277 |
|
|
343,050 |
|
|
(3,486 |
) |
|
|
339,564 |
Food Preparation Appliances |
|
264,911 |
|
|
— |
|
|
264,911 |
|
|
143,376 |
|
|
(4,369 |
) |
|
|
139,007 |
Other |
|
138,355 |
|
|
— |
|
|
138,355 |
|
|
50,089 |
|
|
(10,668 |
) |
|
|
39,421 |
Total net sales |
$ |
1,248,658 |
|
$ |
— |
|
$ |
1,248,658 |
|
$ |
950,312 |
|
$ |
(44,700 |
) |
|
$ |
905,612 |
|
Six Months Ended |
|
Six Months Ended |
|||||||||||||||
($ in thousands, except %) |
Net sales |
|
Divested
|
|
Adjusted
|
|
Net sales |
|
Divested
|
|
Adjusted
|
|||||||
Cleaning Appliances |
$ |
888,035 |
|
$ |
— |
|
$ |
888,035 |
|
$ |
828,667 |
|
$ |
(42,554 |
) |
|
$ |
786,113 |
Cooking and Beverage Appliances |
|
708,918 |
|
|
— |
|
|
708,918 |
|
|
599,732 |
|
|
(4,971 |
) |
|
|
594,761 |
Food Preparation Appliances |
|
469,948 |
|
|
— |
|
|
469,948 |
|
|
261,224 |
|
|
(6,156 |
) |
|
|
255,068 |
Other |
|
247,985 |
|
|
— |
|
|
247,985 |
|
|
115,971 |
|
|
(10,668 |
) |
|
|
105,303 |
Total net sales |
$ |
2,314,886 |
|
$ |
— |
|
$ |
2,314,886 |
|
$ |
1,805,594 |
|
$ |
(64,349 |
) |
|
$ |
1,741,245 |
We define Adjusted Gross Profit as gross profit as adjusted to exclude certain items that we do not consider indicative of our ongoing operating performance following the separation, including the net sales and cost of sales from our Divestitures and the cost of sales from the Product Procurement Adjustment. We define Adjusted Gross Margin as Adjusted Gross Profit divided by Adjusted
The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to the most comparable GAAP measure, gross profit and gross margin, respectively, for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
($ in thousands, except %) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
1,248,658 |
|
|
$ |
950,312 |
|
|
$ |
2,314,886 |
|
|
$ |
1,805,594 |
|
Cost of sales |
|
(647,759 |
) |
|
|
(553,391 |
) |
|
|
(1,187,370 |
) |
|
|
(1,008,130 |
) |
Gross profit |
|
600,899 |
|
|
|
396,921 |
|
|
|
1,127,516 |
|
|
|
797,464 |
|
Gross margin |
|
48.1 |
% |
|
|
41.8 |
% |
|
|
48.7 |
% |
|
|
44.2 |
% |
Divested subsidiary net sales adjustment(1) |
|
— |
|
|
|
(44,700 |
) |
|
|
— |
|
|
|
(64,349 |
) |
Divested subsidiary cost of sales adjustment(2) |
|
— |
|
|
|
24,460 |
|
|
|
— |
|
|
|
37,487 |
|
Product Procurement Adjustment(3) |
|
13,207 |
|
|
|
16,923 |
|
|
|
28,305 |
|
|
|
29,794 |
|
Adjusted Gross Profit |
$ |
614,106 |
|
|
$ |
393,604 |
|
|
$ |
1,155,821 |
|
|
$ |
800,396 |
|
Adjusted |
$ |
1,248,658 |
|
|
$ |
905,612 |
|
|
$ |
2,314,886 |
|
|
$ |
1,741,245 |
|
Adjusted Gross Margin |
|
49.2 |
% |
|
|
43.5 |
% |
|
|
49.9 |
% |
|
|
46.0 |
% |
(1) |
Adjusted for net sales from SNJP and the APAC distribution channels for the three and six months ended |
|
|
||
(2) |
Adjusted for cost of sales from SNJP and the APAC distribution channels for the three and six months ended |
|
|
||
(3) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SharkNinja ( |
We define Adjusted Operating Income as operating income excluding (i) share-based compensation, (ii) certain litigation costs, (iii) amortization of certain acquired intangible assets, (iv) certain transaction-related costs and (v) certain items that we do not consider indicative of our ongoing operating performance following the separation, including operating income from our Divestitures and cost of sales from our Product Procurement Adjustment.
The following table reconciles Adjusted Operating Income to the most comparable GAAP measure, operating income, for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
||||||||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Operating income |
$ |
103,836 |
|
$ |
55,632 |
|
|
$ |
258,778 |
|
$ |
178,262 |
|
Share-based compensation(1) |
|
14,130 |
|
|
2,317 |
|
|
|
33,556 |
|
|
3,165 |
|
Litigation costs(2) |
|
7,165 |
|
|
461 |
|
|
|
13,656 |
|
|
635 |
|
Amortization of acquired intangible assets(3) |
|
4,897 |
|
|
4,897 |
|
|
|
9,794 |
|
|
9,794 |
|
Transaction-related costs(4) |
|
— |
|
|
16,625 |
|
|
|
1,342 |
|
|
35,093 |
|
Product Procurement Adjustment(5) |
|
13,207 |
|
|
16,923 |
|
|
|
28,305 |
|
|
29,794 |
|
Divested subsidiary operating income adjustment(6) |
|
— |
|
|
(8,190 |
) |
|
|
— |
|
|
(8,743 |
) |
Adjusted Operating Income |
$ |
143,235 |
|
$ |
88,665 |
|
|
$ |
345,431 |
|
$ |
248,000 |
|
(1) |
Represents non-cash expense related to restricted stock unit awards issued from the SharkNinja and |
|
|
||
(2) |
Represents litigation costs incurred for certain patent infringement claims and false advertising claims against us. |
|
|
||
(3) |
Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculating Adjusted Operating Income, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations. |
|
|
||
(4) |
Represents certain costs incurred related to the separation and distribution from |
|
|
||
(5) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by |
|
|
||
(6) |
Adjusted for operating income from SNJP and the APAC distribution channels for the three and six months ended |
We define Adjusted Net Income as net income excluding (i) share-based compensation, (ii) certain litigation costs, (iii) foreign currency gains and losses, net, (iv) amortization of certain acquired intangible assets, (v) certain transaction-related costs, (vi) certain items that we do not consider indicative of our ongoing operating performance following the separation, including net income from our Divestitures and cost of sales from our Product Procurement Adjustment and (vii) the tax impact of the adjusted items.
Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the diluted weighted average number of ordinary shares.
The following table reconciles Adjusted Net Income and Adjusted Net Income Per Share to the most comparable GAAP measures, net income and net income per share, diluted, respectively, for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
($ in thousands, except share and per share amounts) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
68,048 |
|
|
$ |
11,936 |
|
|
$ |
177,660 |
|
|
$ |
99,032 |
|
Share-based compensation(1) |
|
14,130 |
|
|
|
2,317 |
|
|
|
33,556 |
|
|
|
3,165 |
|
Litigation costs(2) |
|
7,165 |
|
|
|
461 |
|
|
|
13,656 |
|
|
|
635 |
|
Foreign currency (gains) losses, net(3) |
|
(580 |
) |
|
|
35,468 |
|
|
|
1,587 |
|
|
|
39,617 |
|
Amortization of acquired intangible assets(4) |
|
4,897 |
|
|
|
4,897 |
|
|
|
9,794 |
|
|
|
9,794 |
|
Transaction-related costs(5) |
|
— |
|
|
|
16,625 |
|
|
|
1,342 |
|
|
|
35,093 |
|
Product Procurement Adjustment(6) |
|
13,207 |
|
|
|
16,923 |
|
|
|
28,305 |
|
|
|
29,794 |
|
Tax impact of adjusting items(7) |
|
(7,239 |
) |
|
|
(16,872 |
) |
|
|
(17,715 |
) |
|
|
(25,982 |
) |
Divested subsidiary net income adjustment(8) |
|
— |
|
|
|
(6,585 |
) |
|
|
— |
|
|
|
(6,980 |
) |
Adjusted Net Income |
$ |
99,628 |
|
|
$ |
65,170 |
|
|
$ |
248,185 |
|
|
$ |
184,168 |
|
Net income per share, diluted |
$ |
0.48 |
|
|
$ |
0.09 |
|
|
$ |
1.26 |
|
|
$ |
0.71 |
|
Adjusted Net Income Per Share |
$ |
0.71 |
|
|
$ |
0.47 |
|
|
$ |
1.76 |
|
|
$ |
1.33 |
|
Diluted weighted-average number of shares used in computing net income per share and Adjusted Net Income Per Share(9) |
|
140,924,298 |
|
|
|
138,982,872 |
|
|
|
140,813,662 |
|
|
|
138,982,872 |
|
(1) |
Represents non-cash expense related to restricted stock unit awards issued from the SharkNinja and |
|
|
||
(2) |
Represents litigation costs incurred for certain patent infringement claims and false advertising claims against us. |
|
|
||
(3) |
Represents foreign currency transaction gains and losses recognized from the remeasurement of transactions that were not denominated in the local functional currency, including gains and losses related to foreign currency derivatives not designated as hedging instruments. |
|
|
||
(4) |
Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculated Adjusted Net Income, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations. |
|
|
||
(5) |
Represents certain costs incurred related to the separation and distribution from |
|
|
||
(6) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by |
|
|
||
(7) |
Represents the income tax effects of the adjustments included in the reconciliation of net income to Adjusted Net Income determined using the tax rate of 22.0%, which approximates our effective tax rate, excluding (i) divested subsidiary net income adjustment described in footnote (8), and (ii) certain share-based compensation costs and separation and distribution-related costs that are not tax deductible. |
|
|
||
(8) |
Adjusted for net income (loss) from SNJP and the APAC distribution channels for the three and six months ended |
|
|
||
(9) |
In calculating net income per share and Adjusted Net Income Per Share, we used the number of shares transferred in the separation and distribution for the denominator for all periods prior to completion of the separation and distribution on |
We define EBITDA as net income excluding: (i) interest expense, net, (ii) provision for income taxes and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding (i) share-based compensation cost, (ii) certain litigation costs, (iii) foreign currency gains and losses, net, (iv) certain transaction-related costs and (v) certain items that we do not consider indicative of our ongoing operating performance following the separation, including Adjusted EBITDA from our Divestitures and cost of sales from our Product Procurement Adjustment. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Adjusted
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable GAAP measure, net income, for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
($ in thousands, except %) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
68,048 |
|
|
$ |
11,936 |
|
|
$ |
177,660 |
|
|
$ |
99,032 |
|
Interest expense, net |
|
14,844 |
|
|
|
7,031 |
|
|
|
29,566 |
|
|
|
15,520 |
|
Provision for income taxes |
|
21,633 |
|
|
|
3,995 |
|
|
|
55,489 |
|
|
|
28,260 |
|
Depreciation and amortization |
|
29,225 |
|
|
|
29,038 |
|
|
|
57,042 |
|
|
|
51,792 |
|
EBITDA |
|
133,750 |
|
|
|
52,000 |
|
|
|
319,757 |
|
|
|
194,604 |
|
Share-based compensation(1) |
|
14,130 |
|
|
|
2,317 |
|
|
|
33,556 |
|
|
|
3,165 |
|
Litigation costs(2) |
|
7,165 |
|
|
|
461 |
|
|
|
13,656 |
|
|
|
635 |
|
Foreign currency losses (gains), net(3) |
|
(580 |
) |
|
|
35,468 |
|
|
|
1,587 |
|
|
|
39,617 |
|
Transaction-related costs(4) |
|
— |
|
|
|
16,625 |
|
|
|
1,342 |
|
|
|
35,093 |
|
Product Procurement Adjustment(5) |
|
13,207 |
|
|
|
16,923 |
|
|
|
28,305 |
|
|
|
29,794 |
|
Divested subsidiary Adjusted EBITDA adjustment(6) |
|
— |
|
|
|
(10,187 |
) |
|
|
— |
|
|
|
(11,285 |
) |
Adjusted EBITDA |
$ |
167,672 |
|
|
$ |
113,607 |
|
|
$ |
398,203 |
|
|
$ |
291,623 |
|
Adjusted |
$ |
1,248,658 |
|
|
$ |
905,612 |
|
|
$ |
2,314,886 |
|
|
$ |
1,741,245 |
|
Adjusted EBITDA Margin |
|
13.4 |
% |
|
|
12.5 |
% |
|
|
17.2 |
% |
|
|
16.7 |
% |
(1) |
Represents non-cash expense related to restricted stock unit awards issued from the SharkNinja and |
|
|
||
(2) |
Represents litigation costs incurred for certain patent infringement claims and false advertising claims against us. |
|
|
||
(3) |
Represents foreign currency transaction gains and losses recognized from the remeasurement of transactions that were not denominated in the local functional currency, including gains and losses related to foreign currency derivatives not designated as hedging instruments. |
|
|
||
(4) |
Represents certain costs incurred related to the separation and distribution from |
|
|
||
(5) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by |
|
|
||
(6) |
Adjusted for Adjusted EBITDA from SNJP and the APAC distribution channels for the three and six months ended |
We refer to growth rates in Adjusted
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808296908/en/
Investor Relations:
SVP, Investor Relations
IR@sharkninja.com
ICR
SharkNinja@icrinc.com
Media Relations:
VP, Corporate Communications
PR@sharkninja.com
Source: SharkNinja