Fiscal 2017 Outlook
For the fiscal year 2017, the Company reconfirmed the following outlook:
Fiscal | Fiscal | ||||||||||||||||||||
2017 Outlook (Approx.) | 2016 Actual | % Change | |||||||||||||||||||
Net Sales | $ | 270 million | $ | 230 million | 17 | ||||||||||||||||
Adjusted EBITDA | $ | 62 million | $ | 54 million | 15 | ||||||||||||||||
Adjusted Net Income | $ | 28 million | $ | 18 million | 56 | ||||||||||||||||
Adjusted Pro Forma Diluted EPS | $ | 0.55 | $ | 0.36 | 53 | ||||||||||||||||
Fully Diluted Shares Outstanding | 50.0 million | 50.2 million | N/A | ||||||||||||||||||
The Company noted that it has not completed its year-end close or the annual independent audit and as such, the outlook presented in this press release may change. In addition, while the Company is reconfirming its fiscal year 2017 outlook and may choose to provide interim updates in the future, investors should not expect the Company to provide interim quarterly updates of outlook information in advance of scheduled quarterly earnings announcement dates.
2016-2019 Growth Algorithm
Reflecting current category trends, the Company noted that it is updating the compound annual growth rates included in its growth algorithm. The Company now expects a compound annual net sales and Adjusted EBITDA growth rate of 10-15% from fiscal 2016 to 2019.
ICR Conference
As previously announced, the Company will present at the 20th
Annual ICR Conference in
About e.l.f. Beauty
e.l.f. makes luxurious beauty accessible for all. Established in 2004 as
an e-commerce business (www.elfcosmetics.com),
e.l.f. has become a true multi-channel brand through its e.l.f. stores
and national distribution at Target, Walmart, CVS and other leading
retailers. By engaging young, diverse makeup enthusiasts with
innovative, high-quality cosmetics at an extraordinary value, e.l.f. has
become one of the fastest growing cosmetics companies in
For more information about e.l.f. Beauty, visit the Company’s website at http://www.elfcosmetics.com.
Note Regarding Non-GAAP Financial Measures
This press release includes references to Adjusted EBITDA, Adjusted Net Income and Adjusted Pro Forma Diluted EPS. The Company presents these measures because its management uses these as supplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Company’s performance. The measures referenced above are not measurements of financial performance under GAAP and they should not be considered as alternatives to measures of performance derived in accordance with GAAP. In addition, these alternative measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. These alternative measures have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results as reported under GAAP. The Company’s definitions and calculations of these alternative measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. Adjusted EBITDA (earnings before interest expense, income tax, depreciation and amortization) excludes costs related to “restructuring” of operations, initial public offering costs, stock-based compensation, management fees paid to our sponsor, retail store pre-opening costs, customer expansion costs, other non-cash and non-recurring costs and (gains)/losses on foreign currency contracts. Adjusted Net Income excludes costs related to “restructuring” of operations, initial public offering costs, stock-based compensation, management fees paid to our sponsor, retail store pre-opening costs, customer expansion costs, other non-cash and non-recurring costs, (gains)/losses on foreign currency contracts, interest expense and the tax impact of the foregoing adjustments. Adjusted Pro Forma Diluted EPS equals Adjusted Net Income divided by fully-diluted pro forma share count, which reflects the number of shares issued with the initial public offering in September 2016 as if they had been outstanding as of January 1, 2016. With respect to the Company’s expectations under “Fiscal 2017 Outlook” above, the Company is not able to provide a quantitative reconciliation of the Adjusted EBITDA, Adjusted Net Income and Adjusted Pro Forma Diluted EPS guidance non-GAAP measures to the corresponding Net Income and Diluted EPS GAAP measures without unreasonable efforts. The Company cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures at this time because it has not yet completed its year-end close. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements discuss the Company’s current expectations,
estimates and projections relating to its financial condition and
results of operations. These statements, including those under the
headings “Fiscal 2017 Outlook” and “2016-2019 Growth Algorithm,” are
based on the Company’s current plans and expectations and involve risks
and uncertainties which are, in many instances, beyond the Company’s
control, and which could cause actual results to differ materially from
those included in or contemplated or implied by the forward-looking
statements. Such risks and uncertainties include, but are not limited
to: the completion of the Company’s year-end closing procedures and
independent audit; the Company’s ability to grow net sales and Adjusted
EBITDA as anticipated; the Company’s ability to effectively compete with
other cosmetics companies; the Company’s ability to successfully
introduce new products; the loss of one or more of the Company’s key
retail customers or if the general business performance of its key
retail customers declines; the consequences if the Company fails to
maintain the quality, performance and safety of its products; the
Company’s ability to successfully implement its growth strategy; the
Company’s ability to grow its business at historic rates, or at all, and
to manage growth effectively; any damage to the Company’s reputation or
brand; the loss of, or damage to, the Company’s warehouse and
distribution center and/or the manufacturing facilities or distribution
centers of its third-party manufacturers and suppliers; the loss of the
third-party suppliers, manufacturers, distributors and other vendors
that the Company relies on to produce products or provide services that
are consistent with its standards or applicable regulatory requirements;
the Company’s ability to effectively manage its inventory; the Company’s
ability to manage its debt obligations; the Company’s ability to
maintain sufficient liquidity to sustain its business and meet seasonal
working capital requirements; the Company’s ability to protect against
service interruptions, data corruption, cyber-based attacks or network
security breaches, and to effectively resolve issues in a timely manner
if they occur; the Company’s ability to protect sensitive information of
its consumers and information technology systems against security
breaches; the Company’s ability to manage the political, legal and
economic risks associated with its operations in
ELF-EC
View source version on businesswire.com: http://www.businesswire.com/news/home/20180108006814/en/
Investors and Media:
ICR, Inc.
Investors:
Allison
Malkin, 203-682-8200
or
Media:
Brittany Rae Fraser,
646-277-1231
Source: e.l.f. Beauty