02/15/24
8:30 am EST
Most Recent
Press Release
HanesBrands Announces Strong First-Quarter 2021 Results
HanesBrands Announces Strong First-Quarter 2021 Results
May 11, 2021 at 6:00 AM EDT
Growth across all segments on strong brand performance and share gains
-
Net sales from continuing operations of
$1.51 billion , up 25% over prior year -
Growth driven by global Champion brand and
U.S. Innerwear business -
EPS from continuing operations of
$0.37 - Reports non-cash charge related to reclassifying European Innerwear business as discontinued operations
- Provides second-quarter and full-year guidance
- Declares 33rd consecutive regular quarterly dividend
- Company to host virtual investor day today to unveil Full Potential strategic growth plan
Net sales from continuing operations for the first quarter ended
Double-digit growth in both global innerwear and activewear businesses was driven by strong point-of-sale performance across all major channels, led by 82% growth in online channels, and market share gains in key categories. First-quarter sales growth also benefited from a comparison with the initial pandemic shutdowns in the year ago period and certain one-time contributions, including government stimulus and retailer restocking.
“Our strong first-quarter results showed growth across all business segments,” said Chief Executive Officer
“I want to thank our 61,000 associates who continue to meet consumer demand around the world as we continue to face COVID-related challenges. Our first-quarter results show the competitive advantages of our supply chain as well as the rapid progress we’re making on our Full Potential plan to generate long-term revenue and profit growth.”
The company previously announced its intention to seek strategic alternatives for its European Innerwear business as it focuses on other strategic growth opportunities. In the quarter, the company reclassified this business to discontinued operations. As a result, the company recorded a non-cash impairment charge of approximately
Additional information reflecting European Innerwear as discontinued operations in prior periods can be found on the investors section of the HanesBrands corporate website at www.Hanes.com/Investors.
First-quarter GAAP gross margin of 40.0% increased 520 basis points compared to the prior year period. Adjusted gross margin of 40.2% increased 360 basis points over the comparable prior year period. The year-over-year improvement in gross margin was driven predominantly by the leverage of higher sales volume from strong point-of-sale growth and the one-time items referenced above.
Also contributing to gross margin improvement in the quarter were favorable product mix, foreign exchange rates and a modest benefit from sales related to the company’s SKU reduction initiative. These were partially offset by higher transportation costs, which resulted from increased shipping rates globally as well as costs associated with expediting product to meet stronger-than-expected customer demand.
First-quarter GAAP operating profit increased 297% to
The GAAP and adjusted effective tax rate for the first quarter were 10% and 16%, respectively, which compares to a GAAP and adjusted effective tax rate of 12% and 14%, respectively, for the first quarter of 2020.
First-quarter GAAP income from continuing operations totaled
(See the Note on Reconciliation of Select GAAP Measures to Non-GAAP Measures later in this news release for additional discussion and details of actions, which include pandemic-related and Full Potential plan charges.)
Virtual Investor Day to Unveil Full Potential Strategic Growth Plan and Three-year Financial Framework
HanesBrands will host a virtual investor day at
First-Quarter 2021 Business Segment Summaries (Comparisons to First-Quarter 2020, Unless Otherwise Noted)
Innerwear Segment.
Activewear Segment.
International Segment. International revenue and operating profit increased 18% and 72%, respectively, over prior year. On a constant currency basis sales and profit increased 8% and 57%, respectively. On a constant currency basis, the company experienced growth in: the
International segment operating profit increased 72% to
Regular Quarterly Cash Dividend Declared
The company’s Board of Directors declared a regular quarterly cash dividend of
The declared cash dividend represents the 33rd consecutive quarterly return of cash to stockholders. The company has paid a cumulative
Second Quarter and Full-year 2021 Financial Outlook
The following financial outlook is based on current market conditions and judgments of management and is subject to risks and uncertainties that may cause actual results to differ materially, many of which are further discussed in the company’s most recent annual report on Form 10-K available at www.sec.gov and in the investors section of the company’s website at www.Hanes.com/Investors.
For the second quarter of 2021 which ends on
-
Net sales from continuing operations of approximately
$1.56 billion to$1.59 billion , which represents approximately 2% growth at the midpoint and includes a projected benefit of approximately$35 million from changes in foreign currency exchange rates. This compares to net sales of$1.54 billion in second-quarter 2020, which included$614 million in PPE sales. - Excluding PPE, net sales at the midpoint of the guidance range are expected to increase 69% over prior year period.
- While the company expects a modest amount of sales from one-time benefits, including retailer restocking and stimulus-related spending, to continue into the second quarter, the benefit is expected to be significantly lower than first-quarter levels. For the second half of 2021, the company’s guidance does not assume any additional stimulus or inventory restocking benefits.
-
GAAP operating profit from continuing operations to range from approximately
$179 million to$189 million . -
Adjusted operating profit from continuing operations to range from approximately
$200 million to$210 million . The midpoint of adjusted operating profit implies an operating margin of approximately 13.0% and reflects the impact of inflation, particularly transportation, as well as increased brand investment. This compares to an adjusted operating margin of 15.2% in the second quarter of 2020, which benefited from significant fixed cost leverage due to PPE volume-driven efficiencies in the supply chain as well as temporary COVID-driven cost reductions. -
Charges for actions related to Full Potential of approximately
$21 million . -
Interest and Other expenses of approximately
$45 million . - An effective tax rate of approximately 15% on a GAAP and adjusted basis.
-
GAAP earnings per share from continuing operations to range from
$0.32 to$0.35 . Adjusted earnings per share from continuing operations to range from$0.37 to$0.40 .
For fiscal year 2021, which ends on
-
Net sales from continuing operations to total approximately
$6.2 billion to$6.3 billion , which includes a projected benefit of approximately$100 million from changes in foreign currency exchange rates. At the midpoint, net sales guidance implies approximately 2% growth over prior year and 3% growth adjusted for the 53rd week in 2020. This compares to net sales of$6.13 billion in 2020, which included$820 million in sales of PPE. - Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 19% over prior year period.
-
GAAP operating profit from continuing operations to range from approximately
$730 million to$760 million . -
Adjusted operating profit from continuing operations to range from approximately
$815 million to$845 million . The midpoint of adjusted operating profit suggests an operating margin of 13.3%, compared with an adjusted operating margin of 12.7% in 2020. -
Incremental brand marketing investment of
$50 million as compared to 2020. - As compared to 2019, at the midpoint of the company’s full-year 2021 guidance, which includes incremental brand investment and COVID-related expenses, net sales and adjusted operating profit are expected to be above 2019 levels.
-
Charges for actions related to Full Potential of approximately
$85 million . -
Interest and Other expenses of approximately
$185 million . - An effective tax rate of approximately 14% on a GAAP basis and approximately 15% on an adjusted basis.
-
GAAP earnings per share from continuing operations to range from approximately
$1.33 to$1.41 . -
Adjusted earnings per share from continuing operations to range from approximately
$1.51 to$1.59 . -
Cash flow from operations to range from
$500 million to$550 million . -
Capital expenditures of approximately
$140 million , which includes approximately$50 million related to Full Potential.
HanesBrands has updated its quarterly frequently-asked-questions document, which is available at www.Hanes.com/FAQ.
Note on Adjusted Measures and Reconciliation to GAAP Measures
To supplement financial results prepared in accordance with generally accepted accounting principles, the company provides quarterly and full-year results concerning certain non‐GAAP financial measures, including adjusted EPS from continuing operations, adjusted income from continuing operations, adjusted income tax expense, adjusted income from continuing operations before income tax expense, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), EBITDA and adjusted EBITDA.
Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income from continuing operations is defined as income from continuing operations excluding actions and the tax effect on actions. Adjusted income tax expense is defined as income tax expense excluding actions. Adjusted income from continuing operations before income tax is defined as income from continuing operations before income tax excluding actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted SG&A is defined as selling, general and administrative expenses excluding actions. Adjusted gross profit is defined as gross profit excluding actions.
Charges for actions taken in 2020 include supply chain restructuring actions, program exit costs, COVID-19 related charges, Full Potential plan charges and the write-off of a discrete tax asset related to our
While these costs are not operational in nature and are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.
HanesBrands has chosen to present these non‐GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of acquisition integration, the Full Potential plan and other actions, as well as the COVID-19 pandemic. HanesBrands believes these non-GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the company’s ongoing business during each period presented without giving effect to costs associated with the execution and integration of any of the aforementioned actions taken.
The company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as income from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding actions and stock compensation expense. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business.
HanesBrands is a global company that reports financial information in
To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the
HanesBrands believes constant-currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the company’s businesses.
Non‐GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non-GAAP measures presented may be different from non-GAAP measures with similar or identical names presented by other companies.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain forward-looking statements, as defined under
HanesBrands
TABLE 1 |
||||||||||
Condensed Consolidated Statements of Income and Supplemental Financial Information (in thousands, except per share data) (Unaudited) |
||||||||||
|
Quarters Ended |
|
|
|||||||
|
|
|
|
|
% Change |
|||||
Net sales |
$ |
1,508,029 |
|
|
$ |
1,203,070 |
|
|
25.3 |
% |
Cost of sales |
905,348 |
|
|
784,902 |
|
|
|
|||
Gross profit |
602,681 |
|
|
418,168 |
|
|
44.1 |
% |
||
As a % of net sales |
40.0 |
% |
|
34.8 |
% |
|
|
|||
Selling, general and administrative expenses |
412,559 |
|
|
370,215 |
|
|
|
|||
As a % of net sales |
27.4 |
% |
|
30.8 |
% |
|
|
|||
Operating profit |
190,122 |
|
|
47,953 |
|
|
296.5 |
% |
||
As a % of net sales |
12.6 |
% |
|
4.0 |
% |
|
||||
Other expenses |
2,561 |
|
|
6,101 |
|
|
|
|||
Interest expense, net |
44,460 |
|
|
36,027 |
|
|
|
|||
Income from continuing operations before income tax expense |
143,101 |
|
|
5,825 |
|
|
|
|||
Income tax expense |
14,697 |
|
|
707 |
|
|
|
|||
Income from continuing operations |
128,404 |
|
|
5,118 |
|
|
2,408.9 |
% |
||
Loss from discontinued operations, net of tax |
(391,666 |
) |
|
(12,992 |
) |
|
|
|||
Net loss |
$ |
(263,262 |
) |
|
$ |
(7,874 |
) |
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share - basic: |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.37 |
|
|
$ |
0.01 |
|
|
|
|
Discontinued operations |
(1.12 |
) |
|
(0.04 |
) |
|
|
|||
Net loss |
$ |
(0.75 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share - diluted: |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.37 |
|
|
$ |
0.01 |
|
|
|
|
Discontinued operations |
(1.11 |
) |
|
(0.04 |
) |
|
|
|||
Net loss |
$ |
(0.75 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|
|
|||||
Basic |
351,003 |
|
|
359,017 |
|
|
|
|||
Diluted |
351,686 |
|
|
359,436 |
|
|
|
|||
The following tables present a reconciliation of reported results on a constant currency basis for the quarter ended |
|
Quarter Ended |
|
|
|
|
|
|
||||||||||||||
|
As Reported |
|
Impact from Foreign Currency1 |
|
Constant Currency |
|
Quarter Ended
|
|
% Change, As Reported |
|
% Change, Constant Currency |
||||||||||
As reported under GAAP: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
1,508,029 |
|
|
$ |
43,073 |
|
|
$ |
1,464,956 |
|
|
$ |
1,203,070 |
|
|
25.3 |
% |
|
21.8 |
% |
Gross profit |
602,681 |
|
|
24,182 |
|
|
578,499 |
|
|
418,168 |
|
|
44.1 |
|
|
38.3 |
|
||||
Operating profit |
190,122 |
|
|
7,533 |
|
|
182,589 |
|
|
47,953 |
|
|
296.5 |
|
|
280.8 |
|
||||
Diluted earnings per share from continuing operations |
$ |
0.37 |
|
|
$ |
0.02 |
|
|
$ |
0.35 |
|
|
$ |
0.01 |
|
|
3,600.0 |
% |
|
3,400.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As adjusted:2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
1,508,029 |
|
|
$ |
43,073 |
|
|
$ |
1,464,956 |
|
|
$ |
1,203,070 |
|
|
25.3 |
% |
|
21.8 |
% |
Gross profit |
605,488 |
|
|
24,182 |
|
|
581,306 |
|
|
439,979 |
|
|
37.6 |
|
|
32.1 |
|
||||
Operating profit |
209,515 |
|
|
7,533 |
|
|
201,982 |
|
|
72,277 |
|
|
189.9 |
|
|
179.5 |
|
||||
Diluted earnings per share from continuing operations |
$ |
0.39 |
|
|
$ |
0.02 |
|
|
$ |
0.37 |
|
|
$ |
0.07 |
|
|
457.1 |
% |
|
428.6 |
% |
1 |
Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. |
2 |
Results for the quarters ended |
TABLE 2 |
||||||||||
Supplemental Financial Information (in thousands) (Unaudited) |
||||||||||
|
Quarters Ended |
|
|
|||||||
|
|
|
|
|
% Change |
|||||
Segment net sales: |
|
|
|
|
|
|||||
Innerwear1 |
$ |
570,435 |
|
|
$ |
422,402 |
|
|
35.0 |
% |
Activewear |
364,003 |
|
|
288,000 |
|
|
26.4 |
|
||
International |
506,261 |
|
|
428,230 |
|
|
18.2 |
|
||
Other |
67,330 |
|
|
64,438 |
|
|
4.5 |
|
||
Total net sales |
$ |
1,508,029 |
|
|
$ |
1,203,070 |
|
|
25.3 |
% |
|
|
|
|
|
|
|||||
Segment operating profit: |
|
|
|
|
|
|||||
Innerwear1 |
$ |
127,417 |
|
|
$ |
81,551 |
|
|
56.2 |
% |
Activewear |
60,594 |
|
|
8,108 |
|
|
647.3 |
|
||
International |
87,180 |
|
|
50,745 |
|
|
71.8 |
|
||
Other |
1,886 |
|
|
(3,393 |
) |
|
NM |
|
||
General corporate expenses/other |
(67,562 |
) |
|
(64,734 |
) |
|
4.4 |
|
||
Total operating profit before restructuring and other action-related charges |
209,515 |
|
|
72,277 |
|
|
189.9 |
|
||
Restructuring and other action-related charges |
(19,393 |
) |
|
(24,324 |
) |
|
(20.3 |
) |
||
Total operating profit |
$ |
190,122 |
|
|
$ |
47,953 |
|
|
296.5 |
% |
1 |
The Innerwear segment includes approximately |
Including the favorable foreign currency impact of |
TABLE 3 |
|||||||
Condensed Consolidated Balance Sheets (in thousands) (Unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
530,403 |
|
|
$ |
900,615 |
|
Trade accounts receivable, net |
807,738 |
|
|
768,221 |
|
||
Inventories |
1,489,565 |
|
|
1,367,758 |
|
||
Other current assets |
153,358 |
|
|
158,700 |
|
||
Current assets of discontinued operations |
303,045 |
|
|
234,086 |
|
||
Total current assets |
3,284,109 |
|
|
3,429,380 |
|
||
Property, net |
458,434 |
|
|
477,821 |
|
||
Right-of-use assets |
416,136 |
|
|
432,631 |
|
||
Trademarks and other identifiable intangibles, net |
1,269,932 |
|
|
1,293,847 |
|
||
|
1,150,138 |
|
|
1,158,938 |
|
||
Deferred tax assets |
355,826 |
|
|
367,976 |
|
||
Other noncurrent assets |
54,678 |
|
|
64,773 |
|
||
Noncurrent assets of discontinued operations |
— |
|
|
494,501 |
|
||
Total assets |
$ |
6,989,253 |
|
|
$ |
7,719,867 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Accounts payable |
$ |
976,887 |
|
|
$ |
891,868 |
|
Accrued liabilities |
571,410 |
|
|
609,864 |
|
||
Lease liabilities |
132,127 |
|
|
136,510 |
|
||
Current portion of long-term debt |
34,375 |
|
|
263,936 |
|
||
Current liabilities of discontinued operations |
288,936 |
|
|
222,183 |
|
||
Total current liabilities |
2,003,735 |
|
|
2,124,361 |
|
||
Long-term debt |
3,649,631 |
|
|
3,739,434 |
|
||
Lease liabilities - noncurrent |
315,382 |
|
|
331,577 |
|
||
Pension and postretirement benefits |
333,460 |
|
|
381,457 |
|
||
Other noncurrent liabilities |
202,564 |
|
|
216,091 |
|
||
Noncurrent liabilities of discontinued operations |
— |
|
|
112,989 |
|
||
Total liabilities |
6,504,772 |
|
|
6,905,909 |
|
||
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Preferred stock |
— |
|
|
— |
|
||
Common stock |
3,491 |
|
|
3,488 |
|
||
Additional paid-in capital |
304,090 |
|
|
307,883 |
|
||
Retained earnings |
753,785 |
|
|
1,069,546 |
|
||
Accumulated other comprehensive loss |
(576,885 |
) |
|
(566,959 |
) |
||
Total stockholders’ equity |
484,481 |
|
|
813,958 |
|
||
Total liabilities and stockholders’ equity |
$ |
6,989,253 |
|
|
$ |
7,719,867 |
|
TABLE 4 |
|||||||
Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) |
|||||||
|
Quarters Ended |
||||||
|
|
|
|||||
Operating Activities: |
|
|
|||||
Net loss |
$ |
(263,262 |
) |
$ |
(7,874 |
) |
|
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|||||
Depreciation |
24,142 |
|
22,781 |
|
|||
Amortization of acquisition intangibles |
6,179 |
|
6,113 |
|
|||
Other amortization |
3,020 |
|
2,477 |
|
|||
Impairment of intangible assets and goodwill |
163,047 |
|
— |
|
|||
Loss on classification of assets held for sale |
226,352 |
|
— |
|
|||
Amortization of debt issuance costs |
4,580 |
|
2,123 |
|
|||
Other |
(5,835 |
) |
(5,258 |
) |
|||
Changes in assets and liabilities: |
|
|
|||||
Accounts receivable |
(63,955 |
) |
73,694 |
|
|||
Inventories |
(122,781 |
) |
(86,785 |
) |
|||
Other assets |
9,606 |
|
26,790 |
|
|||
Accounts payable |
109,197 |
|
(13,605 |
) |
|||
Accrued pension and postretirement benefits |
(38,757 |
) |
(21,481 |
) |
|||
Accrued liabilities and other |
(34,587 |
) |
(82,191 |
) |
|||
Net cash from operating activities |
16,946 |
|
(83,216 |
) |
|||
|
|
|
|||||
Investing Activities: |
|
|
|||||
Capital expenditures |
(17,804 |
) |
(25,759 |
) |
|||
Proceeds from sales of assets |
2,406 |
|
66 |
|
|||
Other |
1,794 |
|
1,216 |
|
|||
Net cash from investing activities |
(13,604 |
) |
(24,477 |
) |
|||
|
|
|
|||||
Financing Activities: |
|
|
|||||
Repayments on Term Loan Facilities |
(300,000 |
) |
— |
|
|||
Borrowings on Accounts Receivable Securitization Facility |
— |
|
227,061 |
|
|||
Repayments on Accounts Receivable Securitization Facility |
— |
|
(74,909 |
) |
|||
Borrowings on Revolving Loan Facilities |
— |
|
1,638,000 |
|
|||
Repayments on Revolving Loan Facilities |
— |
|
(688,000 |
) |
|||
Borrowings on International Debt |
— |
|
31,222 |
|
|||
Borrowings on notes payable |
21,106 |
|
62,312 |
|
|||
Repayments on notes payable |
(20,276 |
) |
(64,352 |
) |
|||
Share repurchases |
— |
|
(200,269 |
) |
|||
Cash dividends paid |
(52,351 |
) |
(53,683 |
) |
|||
Other |
(2,902 |
) |
132 |
|
|||
Net cash from financing activities |
(354,423 |
) |
877,514 |
|
|||
Effect of changes in foreign exchange rates on cash |
(17,662 |
) |
(15,061 |
) |
|||
Change in cash, cash equivalents and restricted cash |
(368,743 |
) |
754,760 |
|
|||
Cash, cash equivalents and restricted cash at beginning of year |
910,603 |
|
329,923 |
|
|||
Cash, cash equivalents and restricted cash at end of period |
541,860 |
|
1,084,683 |
|
|||
Less restricted cash at end of period |
1,153 |
|
903 |
|
|||
Cash and cash equivalents at end of period |
$ |
540,707 |
|
$ |
1,083,780 |
|
|
|
|
|
|||||
Balances included in the Condensed Consolidated Balance Sheets: |
|
|
|||||
Cash and cash equivalents |
$ |
530,403 |
|
$ |
1,069,490 |
|
|
Cash and cash equivalents included in current assets of discontinued operations |
10,304 |
|
14,290 |
|
|||
Cash and cash equivalents at end of period |
$ |
540,707 |
|
$ |
1,083,780 |
|
1 |
The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
TABLE 5 |
|||||||||||||||||||||||||||
Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (in thousands, except per share data) (Unaudited) |
|||||||||||||||||||||||||||
|
Quarter Ended |
||||||||||||||||||||||||||
|
Gross Profit |
|
Selling, General and Administrative Expenses |
|
Operating
|
|
Income From Continuing Operations Before Income Tax Expense |
|
Income Tax
|
|
Income From Continuing Operations |
|
Diluted Earnings Per Share From Continuing Operations1 |
||||||||||||||
As reported |
$ |
602,681 |
|
|
$ |
(412,559 |
) |
|
$ |
190,122 |
|
|
$ |
143,101 |
|
|
$ |
(14,697 |
) |
|
$ |
128,404 |
|
|
$ |
0.37 |
|
As a percentage of net sales |
40.0 |
% |
|
27.4 |
% |
|
12.6 |
% |
|
|
|
|
|
|
|
|
|||||||||||
Restructuring and other action-related charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Full Potential Plan: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Professional services |
— |
|
|
11,706 |
|
|
11,706 |
|
|
11,706 |
|
|
— |
|
|
11,706 |
|
|
0.03 |
|
|||||||
Impairment of intangible assets |
— |
|
|
7,302 |
|
|
7,302 |
|
|
7,302 |
|
|
— |
|
|
7,302 |
|
|
0.02 |
|
|||||||
Other |
2,807 |
|
|
(2,422 |
) |
|
385 |
|
|
385 |
|
|
— |
|
|
385 |
|
|
— |
|
|||||||
Discrete tax benefit |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,295 |
) |
|
(7,295 |
) |
|
(0.02 |
) |
|||||||
Tax effect on actions |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,007 |
) |
|
(4,007 |
) |
|
(0.01 |
) |
|||||||
Total restructuring and other action-related charges |
2,807 |
|
|
16,586 |
|
|
19,393 |
|
|
19,393 |
|
|
(11,302 |
) |
|
8,091 |
|
|
0.02 |
|
|||||||
As adjusted |
$ |
605,488 |
|
|
$ |
(395,973 |
) |
|
$ |
209,515 |
|
|
$ |
162,494 |
|
|
$ |
(25,999 |
) |
|
$ |
136,495 |
|
|
$ |
0.39 |
|
As a percentage of net sales |
40.2 |
% |
|
26.3 |
% |
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
Quarter Ended |
||||||||||||||||||||||||||
|
Gross Profit |
|
Selling, General and Administrative Expenses |
|
Operating
|
|
Income From Continuing Operations Before Income Tax Expense |
|
Income Tax
|
|
Income From Continuing Operations |
|
Diluted Earnings Per Share From Continuing Operations1 |
||||||||||||||
As reported |
$ |
418,168 |
|
|
$ |
(370,215 |
) |
|
$ |
47,953 |
|
|
$ |
5,825 |
|
|
$ |
(707 |
) |
|
$ |
5,118 |
|
|
$ |
0.01 |
|
As a percentage of net sales |
34.8 |
% |
|
30.8 |
% |
|
4.0 |
% |
|
|
|
|
|
|
|
|
|||||||||||
Restructuring and other action-related charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Supply chain actions |
14,065 |
|
|
— |
|
|
14,065 |
|
|
14,065 |
|
|
— |
|
|
14,065 |
|
|
0.04 |
|
|||||||
Program exit costs |
7,746 |
|
|
467 |
|
|
8,213 |
|
|
8,213 |
|
|
— |
|
|
8,213 |
|
|
0.02 |
|
|||||||
Other restructuring costs |
— |
|
|
2,046 |
|
|
2,046 |
|
|
2,046 |
|
|
— |
|
|
2,046 |
|
|
0.01 |
|
|||||||
Tax effect on actions |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,526 |
) |
|
(3,526 |
) |
|
(0.01 |
) |
|||||||
Total restructuring and other action-related charges |
21,811 |
|
|
2,513 |
|
|
24,324 |
|
|
24,324 |
|
|
(3,526 |
) |
|
20,798 |
|
|
0.06 |
|
|||||||
As adjusted |
$ |
439,979 |
|
|
$ |
(367,702 |
) |
|
$ |
72,277 |
|
|
$ |
30,149 |
|
|
$ |
(4,233 |
) |
|
$ |
25,916 |
|
|
$ |
0.07 |
|
As a percentage of net sales |
36.6 |
% |
|
30.6 |
% |
|
6.0 |
% |
|
|
|
|
|
|
|
|
1 |
Amounts may not be additive due to rounding. |
Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (in thousands, except per share data) (Unaudited) |
|||||||
|
Last Twelve Months |
||||||
|
|
|
|||||
EBITDA1: |
|
|
|||||
Income from continuing operations |
$ |
90,999 |
|
$ |
502,787 |
|
|
Interest expense, net |
172,671 |
|
165,148 |
|
|||
Income tax expense (benefit) |
(95,950 |
) |
61,959 |
|
|||
Depreciation and amortization |
116,816 |
|
114,164 |
|
|||
Total EBITDA |
284,536 |
|
844,058 |
|
|||
Total restructuring and other action-related charges (excluding tax effect on actions) |
729,265 |
|
65,663 |
|
|||
Stock compensation expense |
12,504 |
|
8,328 |
|
|||
Total EBITDA, as adjusted |
$ |
1,026,305 |
|
$ |
918,049 |
|
|
|
|
|
|||||
Net debt: |
|
|
|||||
Debt (current and long-term debt and Accounts Receivable Securitization Facility) |
$ |
3,684,006 |
|
$ |
4,391,641 |
|
|
Notes payable |
— |
|
1,660 |
|
|||
(Less) Cash and cash equivalents |
(530,403 |
) |
(1,069,490 |
) |
|||
Net debt |
$ |
3,153,603 |
|
$ |
3,323,811 |
|
|
Net debt/EBITDA, as adjusted |
3.1 |
|
3.6 |
|
1 |
Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure. |
|
Quarters Ended |
||||||
|
|
|
|||||
Free cash flow: |
|
|
|||||
Net cash from operating activities |
$ |
16,946 |
|
$ |
(83,216 |
) |
|
Capital expenditures |
(17,804 |
) |
(25,759 |
) |
|||
Free cash flow |
$ |
(858 |
) |
$ |
(108,975 |
) |
1 |
Free cash flow includes the results from continuing and discontinued operations. |
TABLE 6 |
|||
Supplemental Financial Information Reconciliation of GAAP Outlook to Adjusted Outlook (in thousands, except per share data) (Unaudited) |
|||
|
Quarter Ended |
|
Year Ended |
|
|
|
|
Operating profit outlook, as calculated under GAAP |
|
|
|
Restructuring and other action-related charges |
|
|
|
Operating profit outlook, as adjusted |
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations, as calculated under GAAP1 |
|
|
|
Restructuring and other action-related charges |
|
|
|
Diluted earnings per share from continuing operations, as adjusted |
|
|
|
1 |
The company expects approximately 352 million diluted weighted average shares outstanding for the quarter ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210511005408/en/
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Source: HanesBrands
Data Provided by Refinitiv. Minimum 15 minutes delayed.