Sign In  |  Register  |  About Daly City  |  Contact Us

Daly City, CA
September 01, 2020 1:20pm
7-Day Forecast | Traffic
  • Search Hotels in Daly City

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Williams-Sonoma, Inc. announces record fiscal year 2022 revenues & earnings

FY22 comparable brand revenue growth of 6.5%

FY22 GAAP operating margin of 17.3%; non-GAAP operating margin of 17.5%

FY22 GAAP diluted EPS of $16.32; non-GAAP diluted EPS of $16.54

Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the fourth quarter and fiscal year ended January 29, 2023 (Fiscal 2022).

“At Williams-Sonoma, Inc., we are proud that, despite the declining macro environment, we delivered another record year of revenue, with a comp of 6.5% on the topline, and record earnings of $16.54 per share. With our relentless focus on customer service and profitable growth, we continue to outperform our peers, gain market share, and distinguish ourselves as the world's largest digital-first, design-led, sustainable home retailer,” said Laura Alber, President and Chief Executive Officer.

Alber concluded, “As we look to the long-term, we are confident in our continued ability to take market share, and to do so, profitably. With our culture of innovation and talent, our values, and the strength of our team, we're moving ahead with our vision of furnishing our customers everywhere. As we do, we are confident that we will continue to deliver for all our customers, employees and shareholders.”

FOURTH QUARTER 2022 HIGHLIGHTS

  • Comparable brand revenue declined 0.6% with a 2-year comp of over 10% and a 3-year comp of 36%.
  • Delivered a gross margin of 41.2%, deleveraging 380bps, primarily driven by higher inbound and outbound shipping and freight costs with occupancy deleverage of 60bps. Occupancy costs increased 5.4% to $204 million.
  • Leveraged SG&A 200bps on a GAAP basis and 270bps on a non-GAAP basis to 21.3%, reflecting employment and advertising leverage, and insurance proceeds.
  • Delivered a GAAP operating margin of 19.2% and non-GAAP operating margin of 19.9%.
  • Increased non-GAAP EPS 1.5% with GAAP diluted EPS of $5.28 and non-GAAP diluted EPS of $5.50.

FISCAL YEAR 2022 HIGHLIGHTS

  • Grew comparable brand revenue 6.5% with a 2-year comp of over 28% and a 3-year comp of over 45%.
  • Delivered gross margin of 42.4%, deleveraging 160bps, primarily driven by higher shipping and freight costs, with merchandise margins flat to last year. Occupancy costs increased 7.9% to $785.4 million.
  • Leveraged SG&A 130bps on a GAAP basis and 140bps on a non-GAAP basis to 24.9%, reflecting employment and advertising leverage.
  • Delivered GAAP operating margin of 17.3%; non-GAAP operating margin of 17.5%, only down 20bps to last year's record high rate.
  • Increased EPS 11% with GAAP diluted EPS of $16.32 and non-GAAP diluted EPS of $16.54.
  • Delivered ROIC of 49.4% driven by record earnings.
  • Maintained strong liquidity position of $367 million in cash and over $1.0 billion in operating cash flow enabling the company to deliver strong returns to shareholders of $1.1 billion through $217 million in dividends and $880 million in share repurchases.

DIVIDENDS AND SHARE REPURCHASE AUTHORIZATIONS

  • Increased our quarterly dividend 15%, or $0.12, to $0.90 per share.
  • Expanded our stock buy-back capacity to $1 billion.

OUTLOOK

  • In fiscal 2023, we expect annual net revenue growth in the range of -3% to +3% with an operating margin between 14% to 15%.
  • In the long-term, we expect mid-to-high single-digit annual net revenue growth with operating margin above 15%.

CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, March 16, 2023, at 7:00 A.M. (PT). The call will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/events.

SEC REGULATION G NON-GAAP INFORMATION

This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential variability and limited visibility of excluded items; these excluded items may include impairment charges for certain hardware and software costs and goodwill of Aperture, as well as expenses related to the impact of the acquisition of Outward, Inc. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer, our fiscal year 2023 outlook and long-term financial targets, and statements regarding our growth strategies and macro trends.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; the continuing impact of inflation and measures to control inflation, including raising interest rates, on consumer spending; the continuing impact of the coronavirus, war in Ukraine, and shortages of various raw materials on our global supply chain, retail store operations and customer demand; labor and material shortages; the outcome of our growth initiatives; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy, supply chain, product, transportation and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; the impact of current and potential future tariffs and our ability to mitigate impacts; the potential for increased corporate income taxes; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended January 30, 2022 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-K for the fiscal year ended January 29, 2023. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-K. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

ABOUT WILLIAMS-SONOMA, INC.

Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s products, representing distinct merchandise strategies — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham — are marketed through e-commerce websites, direct-mail catalogs and retail stores. These brands are also part of The Key Rewards, our loyalty and credit card program that offers members exclusive benefits across the Williams-Sonoma family of brands. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, offer international shipping to customers worldwide, and have unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India, as well as e-commerce websites in certain locations. We are also proud to be a leader in our industry with our Environmental, Social and Governance (“ESG”) efforts. Our company is Good By Design — we’ve deeply ingrained sustainability into our business. From our factories to your home, we are united in a shared purpose to care for our people and our planet.

For more information on our ESG efforts, please visit: https://sustainability.williams-sonomainc.com/

WSM-IR

 

Condensed Consolidated Statements of Earnings (unaudited)

 

 

For the Thirteen Weeks Ended

 

January 29, 2023

 

January 30, 2022

(In thousands, except per share amounts)

$

 

% of

Revenues

 

$

 

% of

Revenues

Net revenues

$

2,453,079

 

 

100.0

%

 

$

2,501,029

 

 

100.0

%

Cost of goods sold

 

1,443,229

 

 

58.8

 

 

 

1,375,792

 

 

55.0

 

Gross profit

 

1,009,850

 

 

41.2

 

 

 

1,125,237

 

 

45.0

 

Selling, general and administrative expenses

 

540,063

 

 

22.0

 

 

 

600,665

 

 

24.0

 

Operating income

 

469,787

 

 

19.2

 

 

 

524,572

 

 

21.0

 

Interest income, net

 

(1,383

)

 

(0.1

)

 

 

(89

)

 

 

Earnings before income taxes

 

471,170

 

 

19.2

 

 

 

524,661

 

 

21.0

 

Income taxes

 

116,177

 

 

4.7

 

 

 

121,720

 

 

4.9

 

Net earnings

$

354,993

 

 

14.5

%

 

$

402,941

 

 

16.1

%

Earnings per share (EPS):

 

 

 

 

 

 

 

Basic

$

5.35

 

 

 

 

$

5.56

 

 

 

Diluted

$

5.28

 

 

 

 

$

5.41

 

 

 

Shares used in calculation of EPS:

 

 

 

 

 

 

 

Basic

 

66,349

 

 

 

 

 

72,494

 

 

 

Diluted

 

67,201

 

 

 

 

 

74,503

 

 

 

 

4th Quarter Net Revenues and Comparable Brand Revenue Growth (Decline)1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

Comparable Brand Revenue

Growth (Decline)

 

 

(In millions, except percentages)

Q4 22

 

Q4 21

 

Q4 22

 

Q4 21

 

 

Pottery Barn

$

967

 

$

921

 

5.8

%

 

16.2

%

 

 

West Elm

 

534

 

 

598

 

(10.7

)

 

18.3

 

 

 

Williams Sonoma

 

524

 

 

552

 

(2.5

)

 

4.5

 

 

 

Pottery Barn Kids and Teen

 

323

 

 

314

 

4.0

 

 

(6.1

)

 

 

Other2

 

105

 

 

116

 

N/A

 

 

N/A

 

 

 

Total

$

2,453

 

$

2,501

 

(0.6

) %

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week basis for Q4 2022 and Q4 2021, and includes business-to-business revenues.

2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, and Mark and Graham.

 

 

Condensed Consolidated Statements of Earnings (unaudited)

 

 

For the Fiscal Year Ended

 

January 29, 2023

 

January 30, 2022

(In thousands, except per share amounts)

$

 

% of

Revenues

 

$

 

% of

Revenues

Net revenues

$

8,674,417

 

 

100.0

%

 

$

8,245,936

 

100.0

%

Cost of goods sold

 

4,996,684

 

 

57.6

 

 

 

4,613,973

 

56.0

 

Gross profit

 

3,677,733

 

 

42.4

 

 

 

3,631,963

 

44.0

 

Selling, general and administrative expenses

 

2,179,311

 

 

25.1

 

 

 

2,178,847

 

26.4

 

Operating income

 

1,498,422

 

 

17.3

 

 

 

1,453,116

 

17.6

 

Interest (income) expense, net

 

(2,260

)

 

 

 

 

1,865

 

 

Earnings before income taxes

 

1,500,682

 

 

17.3

 

 

 

1,451,251

 

17.6

 

Income taxes

 

372,778

 

 

4.3

 

 

 

324,914

 

3.9

 

Net earnings

$

1,127,904

 

 

13.0

%

 

$

1,126,337

 

13.7

%

Earnings per share (EPS):

 

 

 

 

 

 

 

Basic

$

16.58

 

 

 

 

$

15.17

 

 

Diluted

$

16.32

 

 

 

 

$

14.75

 

 

Shares used in calculation of EPS:

 

 

 

 

 

 

 

Basic

 

68,021

 

 

 

 

 

74,272

 

 

Diluted

 

69,100

 

 

 

 

 

76,354

 

 

 

Fiscal Year Net Revenues and Comparable Brand Revenue Growth (Decline)1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

Comparable Brand Revenue

Growth (Decline)

 

 

(In millions, except percentages)

FY 22

 

FY 21

 

FY 22

 

FY 21

 

 

Pottery Barn

$

3,556

 

$

3,121

 

14.9

%

 

23.9

%

 

 

West Elm

 

2,278

 

 

2,235

 

2.5

 

 

33.1

 

 

 

Williams Sonoma

 

1,287

 

 

1,345

 

(1.7

)

 

10.5

 

 

 

Pottery Barn Kids and Teen

 

1,133

 

 

1,140

 

0.4

 

 

11.6

 

 

 

Other2

 

420

 

 

405

 

N/A

 

 

N/A

 

 

 

Total

$

8,674

 

$

8,246

 

6.5

%

 

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 52-week basis for fiscal 2022 and fiscal 2021, and includes business-to-business revenues. Comparable stores that were temporarily closed due to COVID-19 were not excluded from the comparable stores calculation.

2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, and Mark and Graham.

 

 

Condensed Consolidated Balance Sheets (unaudited)

 

 

As of

(In thousands, except per share amounts)

January 29,

2023

 

January 30,

2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

367,344

 

 

$

850,338

 

Accounts receivable, net

 

115,685

 

 

 

131,683

 

Merchandise inventories, net

 

1,456,123

 

 

 

1,246,372

 

Prepaid expenses

 

64,961

 

 

 

69,252

 

Other current assets

 

31,967

 

 

 

26,249

 

Total current assets

 

2,036,080

 

 

 

2,323,894

 

Property and equipment, net

 

1,065,381

 

 

 

920,773

 

Operating lease right-of-use assets

 

1,286,452

 

 

 

1,132,764

 

Deferred income taxes, net

 

81,389

 

 

 

56,585

 

Goodwill

 

77,307

 

 

 

85,354

 

Other long-term assets, net

 

116,407

 

 

 

106,250

 

Total assets

$

4,663,016

 

 

$

4,625,620

 

Liabilities and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

508,321

 

 

$

612,512

 

Accrued expenses

 

247,594

 

 

 

319,924

 

Gift card and other deferred revenue

 

479,229

 

 

 

447,770

 

Income taxes payable

 

61,204

 

 

 

79,554

 

Operating lease liabilities

 

231,965

 

 

 

217,409

 

Other current liabilities

 

108,138

 

 

 

94,517

 

Total current liabilities

 

1,636,451

 

 

 

1,771,686

 

Deferred lease incentives

 

10,027

 

 

 

16,360

 

Long-term operating lease liabilities

 

1,211,693

 

 

 

1,066,839

 

Other long-term liabilities

 

103,794

 

 

 

106,528

 

Total liabilities

 

2,961,965

 

 

 

2,961,413

 

Stockholders' equity

 

 

 

Preferred stock: $0.01 par value; 7,500 shares authorized, none issued

 

 

 

 

 

Common stock: $0.01 par value; 253,125 shares authorized; 66,226 and 71,982 shares issued and outstanding at January 29, 2023 and January 30, 2022, respectively

 

663

 

 

 

720

 

Additional paid-in capital

 

573,117

 

 

 

600,942

 

Retained earnings

 

1,141,819

 

 

 

1,074,084

 

Accumulated other comprehensive loss

 

(13,809

)

 

 

(10,828

)

Treasury stock, at cost

 

(739

)

 

 

(711

)

Total stockholders' equity

 

1,701,051

 

 

 

1,664,207

 

Total liabilities and stockholders' equity

$

4,663,016

 

 

$

4,625,620

 

 

 

 

 

 

Retail Store Data

(unaudited)

 

 

 

 

 

 

 

Beginning of quarter

 

 

End of quarter

 

As of

 

 

 

October 30, 2022

Openings

Closings

January 29, 2023

 

January 30, 2022

 

 

Pottery Barn

189

2

(3

)

188

 

188

 

 

Williams Sonoma

175

1

(11

)

165

 

174

 

 

West Elm

122

1

(1

)

122

 

121

 

 

Pottery Barn Kids

52

(6

)

46

 

52

 

 

Rejuvenation

9

 

9

 

9

 

 

Total

547

4

(21

)

530

 

544

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

For the Fiscal Year Ended

(In thousands)

January 29, 2023

 

January 30, 2022

Cash flows from operating activities:

 

 

 

Net earnings

$

1,127,904

 

 

$

1,126,337

 

Adjustments to reconcile net earnings to net cash provided by (used in) operating

activities:

 

 

 

Depreciation and amortization

 

214,153

 

 

 

196,087

 

Loss on disposal/impairment of assets

 

25,116

 

 

 

1,015

 

Amortization of deferred lease incentives

 

(3,019

)

 

 

(4,282

)

Non-cash lease expense

 

231,350

 

 

 

216,888

 

Deferred income taxes

 

(23,823

)

 

 

2,535

 

Stock-based compensation expense

 

90,268

 

 

 

95,240

 

Other

 

680

 

 

 

288

 

Changes in:

 

 

 

Accounts receivable

 

15,687

 

 

 

11,896

 

Merchandise inventories

 

(208,908

)

 

 

(239,981

)

Prepaid expenses and other assets

 

(11,823

)

 

 

(2,060

)

Accounts payable

 

(113,521

)

 

 

56,674

 

Accrued expenses and other liabilities

 

(61,995

)

 

 

49,460

 

Gift card and other deferred revenue

 

31,839

 

 

 

75,460

 

Operating lease liabilities

 

(242,855

)

 

 

(224,567

)

Income taxes payable

 

(18,231

)

 

 

10,157

 

Net cash provided by operating activities

 

1,052,822

 

 

 

1,371,147

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(354,117

)

 

 

(226,517

)

Other

 

162

 

 

 

270

 

Net cash used in investing activities

 

(353,955

)

 

 

(226,247

)

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(880,038

)

 

 

(899,433

)

Payment of dividends

 

(217,345

)

 

 

(187,539

)

Tax withholdings related to stock-based awards

 

(81,290

)

 

 

(104,235

)

Repayment of long-term debt

 

 

 

 

(300,000

)

Debt issuance costs

 

 

 

 

(778

)

Net cash used in financing activities

 

(1,178,673

)

 

 

(1,491,985

)

Effect of exchange rates on cash and cash equivalents

 

(3,188

)

 

 

(2,914

)

Net decrease in cash and cash equivalents

 

(482,994

)

 

 

(349,999

)

Cash and cash equivalents at beginning of period

 

850,338

 

 

 

1,200,337

 

Cash and cash equivalents at end of period

$

367,344

 

 

$

850,338

 

 

Exhibit 1

 

GAAP to Non-GAAP Reconciliation

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Thirteen Weeks Ended

 

For the Fiscal Year Ended

 

 

 

January 29, 2023

 

January 30, 2022

 

January 29, 2023

 

January 30, 2022

 

 

(In thousands, except per share data)

$

% of

revenues

 

$

% of

revenues

 

$

% of

revenues

 

$

% of

revenues

 

 

Selling, general and administrative expenses

$

540,063

 

22.0

%

 

$

600,665

 

24.0

%

 

$

2,179,311

 

25.1

%

 

$

2,178,847

 

26.4

%

 

 

Impairment of Aperture 1

 

(17,687

)

 

 

 

 

 

 

 

(17,687

)

 

 

 

 

 

 

 

Outward-related 2

 

 

 

 

 

(812

)

 

 

 

 

 

 

 

(9,160

)

 

 

 

Non-GAAP selling, general and administrative expenses

$

522,376

 

21.3

%

 

$

599,853

 

24.0

%

 

$

2,161,624

 

24.9

%

 

$

2,169,687

 

26.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

469,787

 

19.2

%

 

$

524,572

 

21.0

%

 

$

1,498,422

 

17.3

%

 

$

1,453,116

 

17.6

%

 

 

Impairment of Aperture 1

 

17,687

 

 

 

 

 

 

 

 

17,687

 

 

 

 

 

 

 

 

Outward-related 2

 

 

 

 

 

812

 

 

 

 

 

 

 

 

9,160

 

 

 

 

Non-GAAP operating income

$

487,474

 

19.9

%

 

$

525,384

 

21.0

%

 

$

1,516,109

 

17.5

%

 

$

1,462,276

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

Tax rate

 

$

Tax rate

 

$

Tax rate

 

$

Tax rate

 

 

Income taxes

$

116,177

 

24.7

%

 

$

121,720

 

23.2

%

 

$

372,778

 

24.8

%

 

$

324,914

 

22.4

%

 

 

Impairment of Aperture 1

 

2,840

 

 

 

 

 

 

 

 

2,840

 

 

 

 

 

 

 

 

Outward-related 2

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

1,397

 

 

 

 

Non-GAAP income taxes

$

119,017

 

24.4

%

 

$

121,671

 

23.2

%

 

$

375,618

 

24.7

%

 

$

326,311

 

22.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

5.28

 

 

 

$

5.41

 

 

 

$

16.32

 

 

 

$

14.75

 

 

 

 

Impairment of Aperture 1

 

0.22

 

 

 

 

 

 

 

 

0.21

 

 

 

 

 

 

 

 

Outward-related 2

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

0.10

 

 

 

 

Non-GAAP diluted EPS 3

$

5.50

 

 

 

$

5.42

 

 

 

$

16.54

 

 

 

$

14.85

 

 

 

 

1 During Q4 2022, we incurred an impairment charge of approximately $17.7 million, including $9.7 million related to the impairment of software and hardware and $8.0 million related to the impairment of goodwill, associated with Aperture, a division of our Outward, Inc. subsidiary.

 

 

2 During Q4 2021 and FY 2021, we incurred approximately $0.8 million and $9.2 million, respectively, associated with acquisition-related compensation expense and the amortization of acquired intangibles for Outward, Inc.

 

 

3 Per share amounts may not sum due to rounding to the nearest cent per diluted share.

 

SEC Regulation G – Non-GAAP Information

These tables include non-GAAP selling, general and administrative expense, operating income, operating margin, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Return on Invested Capital (“ROIC”)

We believe ROIC is a useful financial measure for investors in evaluating the efficient and effective use of capital, and is an important component of long-term shareholder return.

We define ROIC as non-GAAP net operating profit after tax ("NOPAT"), divided by our average invested capital. NOPAT is defined as non-GAAP operating income, plus rent expense, less estimated taxes at the company’s effective tax rate. Average invested capital is defined as the two-year average of total assets less current liabilities, plus capitalized leases, less cash in excess of $200 million.

ROIC is not a measure of financial performance under GAAP, and should be considered in addition to, and not as a substitute for other financial measures prepared in accordance with GAAP. Our method of determining ROIC may differ from other companies’ methods and therefore may not be comparable.

Contacts

Jeff Howie EVP, Chief Financial Officer – (415) 402 4324

-or-

Jeremy Brooks SVP, Chief Accounting Officer & Head of Investor Relations – (415) 733 2371

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 DalyCity.com & California Media Partners, LLC. All rights reserved.