We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Hanesbrands Inc | NYSE:HBI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.11 | 2.23% | 5.05 | 5.02 | 4.85 | 4.86 | 5,305,319 | 00:54:23 |
HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, today announced results for the first-quarter 2024.
“We delivered solid first quarter results with sales at the midpoint of our outlook, better-than-expected adjusted operating profit, positive cash flow generation and further reduction of our leverage. With the year unfolding as anticipated and our profit visibility, we reiterated our outlook for the full-year,” said Steve Bratspies, CEO. “Over the past three years, we’ve taken necessary actions across the business to enhance and strengthen both the operating and financial models of the Company. With our leading brand positions, lower fixed-cost structure, reestablished gross margin, consistent cash generation and a commitment to reduce debt, we have created a multi-year flywheel designed to accelerate earnings, deleverage faster, and invest in growth initiatives, which we believe will drive strong shareholder returns over the next several years.”
Highlights
First-Quarter 2024 Results
See the Note on Adjusted Measures and Reconciliation to GAAP Measures later in this news release for additional discussion and details of actions, which include Full Potential transformation plan and global Champion performance plan charges.
First-Quarter 2024 Business Segment Summary
Operating margin of 21.9% increased approximately 880 basis points over prior year, with brand marketing investments reaching nearly 5% of sales, its highest level in more than a decade. The year-over-year margin improvement was driven primarily by lower input costs as commodity and ocean freight inflation moderated, and the benefits of cost savings initiatives, which helped fund a 120% increase in brand marketing investments to drive consumer demand behind its product innovation launches and various new brand campaigns.
Operating margin for the segment of 0.5% increased 440 basis points sequentially. Compared to the first quarter of last year, segment operating margin decreased approximately 265 basis points as the impact from lower sales volume and increased brand marketing investments more than offset the benefits from lower input costs, business mix and disciplined SG&A expense management.
Operating margin for the segment of 12.3% increased approximately 120 basis points compared to prior year as the benefits from lower input costs and business mix more than offset SG&A deleverage from lower sales and the negative impact from foreign exchange rates.
Cash Flow, Balance Sheet and Liquidity
Second-Quarter and Full-Year 2024 Financial Outlook
The Company is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in the fourth quarter of 2022. Importantly, the reserve does not impact cash taxes. Some portion of the reserve may reverse in future periods.
The Company closed the sale of its U.S. Sheer Hosiery business on September 29, 2023. For the full year 2023, its U.S. Sheer Hosiery business generated $50 million of net sales and an operating loss of $(2) million. For second-quarter 2023, its U.S. Sheer Hosiery business generated approximately $13.5 million of net sales and an operating loss of approximately $(1.5) million.
For fiscal year 2024, which ends on December 28, 2024, the Company currently expects:
For second-quarter 2024, which ends on June 29, 2024, the Company currently expects:
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, adjusted income (loss), adjusted income tax expense, adjusted income (loss) before income tax expense, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), EBITDA, adjusted EBITDA, adjusted effective tax rate, adjusted interest expense and adjusted other expenses, net debt, leverage ratio and free cash flow.
Adjusted EPS is defined as diluted EPS excluding actions and the tax effect on actions. Adjusted income (loss) is defined as income (loss) excluding actions and the tax effect on actions. Adjusted income tax expense is defined as income tax expense excluding actions. Adjusted income (loss) before income tax is defined as income (loss) 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. Adjusted interest is defined as interest expense excluding actions. Adjusted other expenses is defined as other expenses excluding actions and adjusted effective tax rate is defined as adjusted income tax expense divided by adjusted income (loss) before income tax.
Charges for actions taken in 2024 and 2023, as applicable, include the global Champion performance plan, supply chain segmentation, headcount actions and related severance charges, technology charges, gain/loss on classification of assets held for sale, professional services, loss on extinguishment of debt, gain on final settlement of cross currency swap contracts and the tax effects thereof. The global Champion performance plan includes actions and related charges regarding the Company’s accelerated and enhanced strategic initiatives to further streamline the operations and position the brand for long term profitable growth and the evaluation of strategic alternatives for the global Champion business.
While these costs 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 the Full Potential transformation plan, the global Champion performance plan and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. 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 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 net income (loss) before the impacts of discontinued operations, interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding (x) restructuring charges related to the Full Potential transformation plan, the global Champion performance plan, and other action-related charges described in more detail in Table 6-A and (y) certain other losses, charges and expenses as defined in the Consolidated Net Total Leverage Ratio under its Fifth Amended and Restated Credit Agreement, dated November 19, 2021, as amended (the “Credit Agreement”) described in more detail in Table 6-B. 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.
Net debt is defined as the total of current debt, long-term debt, and borrowings under the accounts receivable securitization facility (excluding long-term debt issuance costs and debt discount and borrowings of unrestricted subsidiaries under the accounts receivable securitization facility) less (x) other debt and cash adjustments and (y) cash and cash equivalents. Leverage ratio is the ratio of net debt to adjusted EBITDA as it is defined in our Credit Agreement.
The Company defines free cash flow as net cash from operating activities less capital expenditures. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. The Company defines organic net sales as net sales excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date.
HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the Company’s reported operating results, HanesBrands also presents constant-currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The Company uses constant currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation.
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 U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).
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. The Company defines organic constant currency sales as net sales excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date and also excluding the impact of translating foreign currencies into U.S. dollars as discussed above.
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 news release contains certain information that may constitute forward-looking statements, as defined under U.S. federal securities laws. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” believe,” “could,” “will,” “expect,” “outlook,” “potential,” “project,” “estimate,” “future,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements with respect to our intent, belief and current expectations about our strategic direction, prospects and future results are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those implied or expressed by such statements. These risks and uncertainties include, but are not limited to, such things as trends associated with our business, our ability to implement successfully, or at all, our Full Potential transformation plan and our global Champion performance plan; our ability to identify, execute, and realize benefits, successfully, or at all, from, any potential strategic transaction involving Champion; the rapidly changing retail environment and the level of consumer demand; the effects of any geopolitical conflicts (including the ongoing Russia-Ukraine conflict and Middle East conflicts) or public health emergencies or severe global health crises, including effects on consumer spending, global supply chains, critical supply routes and the financial markets; our ability to deleverage on the anticipated time frame or at all, which could negatively impact our ability to satisfy the financial covenants in our Credit Agreement or other contractual arrangements; any inadequacy, interruption, integration failure or security failure with respect to our information technology; future intangible assets or goodwill impairment due to changes in our business, market conditions, or other factors, including any sale of the Champion business; significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations; our ability to effectively manage our complex international tax structure; our future financial performance; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and HanesBrands undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law.
About HanesBrands
HanesBrands (NYSE: HBI) makes everyday apparel that is known and loved by consumers around the world for comfort, quality and value. Among the Company’s iconic brands are Hanes, the leading basic apparel brand in the United States; Champion, an innovator at the intersection of lifestyle and athletic apparel; Bonds, which is setting new standards for design and sustainability; Maidenform, America’s number one shapewear brand; and Bali, America’s number one national bra brand. HBI employs 48,000 associates in approximately 30 countries and has built a strong reputation for workplace quality and ethical business practices. The Company, a longtime leader in sustainability, has set aggressive 2030 goals to improve the lives of people, protect the planet and produce sustainable products. HBI is building on its unmatched strengths to unlock its Full Potential and deliver long-term growth that benefits all of its stakeholders.
TABLE 1
HANESBRANDS INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Quarters Ended
March 30, 2024
April 1, 2023
% Change
Net sales
$
1,156,201
$
1,389,410
(16.8
)%
Cost of sales
695,274
939,717
Gross profit
460,927
449,693
2.5
%
As a % of net sales
39.9
%
32.4
%
Selling, general and administrative expenses
408,821
392,374
4.2
%
As a % of net sales
35.4
%
28.2
%
Operating profit
52,106
57,319
(9.1
)%
As a % of net sales
4.5
%
4.1
%
Other expenses
9,271
14,771
Interest expense, net
66,689
58,452
Loss before income taxes
(23,854
)
(15,904
)
Income tax expense
15,268
18,500
Net loss
$
(39,122
)
$
(34,404
)
Loss per share:
Basic
$
(0.11
)
$
(0.10
)
Diluted
$
(0.11
)
$
(0.10
)
Weighted average shares outstanding:
Basic
351,576
350,435
Diluted
351,576
350,435
TABLE 2-A
HANESBRANDS INC.
Supplemental Financial Information
Impact of Foreign Currency
(in thousands, except per share data)
(Unaudited)
The following table presents a reconciliation of reported results on a constant currency basis for the quarter ended March 30, 2024 and a comparison to prior year:
Quarter Ended March 30, 2024
As Reported
Impact from Foreign Currency1
Constant Currency
Quarter Ended April 1, 2023
% Change, As Reported
% Change, Constant Currency
As reported under GAAP:
Net sales
$
1,156,201
$
(14,560
)
$
1,170,761
$
1,389,410
(16.8
)%
(15.7
)%
Gross profit
460,927
(10,135
)
471,062
449,693
2.5
4.8
Operating profit
52,106
(4,106
)
56,212
57,319
(9.1
)
(1.9
)
Diluted loss per share3
$
(0.11
)
$
(0.01
)
$
(0.10
)
$
(0.10
)
10.0
%
—
%
As adjusted:2
Net sales
$
1,156,201
$
(14,560
)
$
1,170,761
$
1,389,410
(16.8
)%
(15.7
)%
Gross profit
461,433
(10,135
)
471,568
454,216
1.6
3.8
Operating profit
83,827
(4,106
)
87,933
63,440
32.1
38.6
Diluted loss per share3
$
(0.02
)
$
(0.01
)
$
(0.01
)
$
(0.06
)
(66.7
)%
(83.3
)%
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 March 30, 2024 and April 1, 2023 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Table 6-A.
3
Amounts may not be additive due to rounding.
TABLE 2-B
HANESBRANDS INC.
Supplemental Financial Information
Organic Constant Currency
(in thousands, except per share data)
(Unaudited)
The following table presents a reconciliation of reported results on an organic constant currency basis for the quarter ended March 30, 2024 and a comparison to prior year:
Quarter Ended March 30, 2024
Quarter Ended April 1, 2023
As Reported
Impact from Foreign Currency1
Less U.S. Hosiery Divestiture2
Organic Constant Currency
As Reported
Less U.S. Hosiery Divestiture2
Organic
% Change,
As Reported
% Change, Organic Constant Currency
Net sales
$
1,156,201
$
(14,560
)
$
—
$
1,170,761
$
1,389,410
$
19,585
$
1,369,825
(16.8
)%
(14.5
)%
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
The Company sold its U.S. Sheer Hosiery business on September 29, 2023.
TABLE 3
HANESBRANDS INC.
Supplemental Financial Information
By Business Segment
(in thousands)
(Unaudited)
Quarters Ended
March 30, 2024
April 1, 2023
% Change
Segment net sales:
Innerwear
$
506,843
$
553,067
(8.4
)%
Activewear
217,749
314,945
(30.9
)
International
406,031
462,857
(12.3
)
Other
25,578
58,541
(56.3
)
Total net sales
$
1,156,201
$
1,389,410
(16.8
)%
Segment operating profit:
Innerwear
$
111,052
$
72,608
52.9
%
Activewear
1,109
9,974
(88.9
)
International
49,882
51,349
(2.9
)
Other
(9,577
)
(4,874
)
96.5
General corporate expenses/other
(68,639
)
(65,617
)
4.6
Total operating profit before restructuring and other action-related charges
83,827
63,440
32.1
Restructuring and other action-related charges
(31,721
)
(6,121
)
418.2
Total operating profit
$
52,106
$
57,319
(9.1
)%
Quarters Ended
March 30, 2024
April 1, 2023
Basis Points Change
Segment operating margin:
Innerwear
21.9
%
13.1
%
878
Activewear
0.5
3.2
(266
)
International
12.3
11.1
119
Other
(37.4
)
(8.3
)
(2,912
)
General corporate expenses/other
(5.9
)
(4.7
)
(121
)
Total operating margin before restructuring and other action-related charges
7.3
4.6
268
Restructuring and other action-related charges
(2.7
)
(0.4
)
(230
)
Total operating margin
4.5
%
4.1
%
38
TABLE 4
HANESBRANDS INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
March 30, 2024
December 30, 2023
April 1, 2023
Assets
Cash and cash equivalents
$
191,216
$
205,501
$
213,209
Trade accounts receivable, net
555,679
557,729
681,921
Inventories
1,419,309
1,368,018
1,969,133
Other current assets
157,510
144,967
159,724
Current assets held for sale
—
—
4,986
Total current assets
2,323,714
2,276,215
3,028,973
Property, net
398,089
414,366
442,315
Right-of-use assets
399,312
428,918
454,643
Trademarks and other identifiable intangibles, net
1,197,310
1,235,704
1,241,624
Goodwill
1,099,858
1,112,744
1,106,590
Deferred tax assets
21,003
21,954
21,732
Other noncurrent assets
150,390
150,413
136,803
Total assets
$
5,589,676
$
5,640,314
$
6,432,680
Liabilities
Accounts payable
$
816,298
$
736,252
$
965,630
Accrued liabilities
477,524
478,676
474,840
Lease liabilities
103,867
110,640
100,266
Accounts Receivable Securitization Facility
17,500
6,000
166,000
Current portion of long-term debt
44,250
59,000
52,750
Current liabilities held for sale
—
—
4,986
Total current liabilities
1,459,439
1,390,568
1,764,472
Long-term debt
3,237,419
3,235,640
3,588,945
Lease liabilities - noncurrent
328,150
354,015
379,365
Pension and postretirement benefits
100,132
104,255
113,649
Other noncurrent liabilities
126,362
136,483
246,723
Total liabilities
5,251,502
5,220,961
6,093,154
Stockholders’ equity
Preferred stock
—
—
—
Common stock
3,515
3,501
3,495
Additional paid-in capital
354,760
353,367
336,851
Retained earnings
515,772
554,796
537,702
Accumulated other comprehensive loss
(535,873
)
(492,311
)
(538,522
)
Total stockholders’ equity
338,174
419,353
339,526
Total liabilities and stockholders’ equity
$
5,589,676
$
5,640,314
$
6,432,680
TABLE 5
HANESBRANDS INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Quarters Ended
March 30, 2024
April 1, 2023
Operating Activities:
Net loss
$
(39,122
)
$
(34,404
)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation
17,674
17,360
Amortization of acquisition intangibles
4,103
4,186
Other amortization
3,299
2,805
Loss on extinguishment of debt
—
8,466
Gain on classification of assets held for sale
—
(2,139
)
Amortization of debt issuance costs and debt discount
2,544
1,973
Other
(2,381
)
5,202
Changes in assets and liabilities:
Accounts receivable
(3,294
)
51,643
Inventories
(59,379
)
7,861
Other assets
(7,554
)
(10,761
)
Accounts payable
103,065
43,171
Accrued pension and postretirement benefits
181
1,479
Accrued liabilities and other
7,035
(52,305
)
Net cash from operating activities
26,171
44,537
Investing Activities:
Capital expenditures
(20,257
)
(24,244
)
Other
28
18,944
Net cash from investing activities
(20,229
)
(5,300
)
Financing Activities:
Borrowings on Term Loan Facilities
—
891,000
Repayments on Term Loan Facilities
(14,750
)
(6,250
)
Borrowings on Accounts Receivable Securitization Facility
513,500
588,000
Repayments on Accounts Receivable Securitization Facility
(502,000
)
(631,500
)
Borrowings on Revolving Loan Facilities
316,000
421,500
Repayments on Revolving Loan Facilities
(316,000
)
(461,000
)
Borrowings on Senior Notes
—
600,000
Repayments on Senior Notes
—
(1,436,884
)
Payments to amend and refinance credit facilities
(178
)
(27,371
)
Other
(4,031
)
(1,675
)
Net cash from financing activities
(7,459
)
(64,180
)
Effect of changes in foreign exchange rates on cash
(12,768
)
(261
)
Change in cash and cash equivalents
(14,285
)
(25,204
)
Cash and cash equivalents at beginning of period
205,501
238,413
Cash and cash equivalents at end of period
$
191,216
$
213,209
TABLE 6-A
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
The following tables present a reconciliation of results as reported under GAAP to the results as adjusted for the quarter ended March 30, 2024 and a comparison to prior year. The Company has chosen to present the following 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 the global Champion performance plan, the Full Potential transformation plan and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. While these costs 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.
Restructuring and other action-related charges in 2024 and 2023 include the following:
Global Champion performance plan
The global Champion performance plan includes actions and related charges regarding the Company’s accelerated and enhanced strategic initiatives to further streamline the operations and position the brand for long term profitable growth and the evaluation of strategic alternatives for the global Champion business, which includes approximately $17 million of charges in the quarter ended March 30, 2024 related to professional fees, severance and other costs. These charges are primarily reflected in selling, general and administrative expenses.
Supply chain segmentation
Represents charges related to supply chain segmentation to restructure, consolidate and position the Company’s distribution and manufacturing network to align with its Full Potential transformation plan demand trends.
Headcount actions and related severance
Represents charges related to operating model initiatives primarily headcount actions and related severance charges and adjustments as a result of the implementation of the Company’s Full Potential transformation plan.
Technology
Represents technology charges related to the implementation of the Company’s technology modernization initiative which includes a global enterprise resource planning platform under its Full Potential transformation plan.
Professional services
Represents professional fees, primarily including consulting and advisory services, related to the implementation of the Company’s Full Potential transformation plan.
Gain/loss on classification of assets held for sale
Represents the gain/loss to adjust the valuation allowance related to the U.S. Sheer Hosiery business, prior to the sale on September 29, 2023, primarily from the changes in carrying value due to changes in working capital.
Loss on extinguishment of debt
Represents charges related to the redemption of the Company’s 4.625% Senior Notes and 3.5% Senior Notes in the first quarter of 2023.
Gain on final settlement of cross currency swap contracts
Primarily represents the remaining gain related to cross-currency swap contracts previously designated as cash flow hedges in accumulated other comprehensive loss which was released into earnings as the Company unwound the cross-currency swap contracts in connection with the redemption of the 3.5% Senior Notes at the time of settlement in the first quarter of 2023.
Tax effect on actions
Represents the applicable effective tax rate on the restructuring and other action-related charges based on the jurisdiction of where the charges were incurred.
Quarters Ended
March 30, 2024
April 1, 2023
Gross profit, as reported under GAAP
$
460,927
$
449,693
As a % of net sales
39.9
%
32.4
%
Restructuring and other action-related charges:
Global Champion performance plan
303
—
Full Potential transformation plan:
Supply chain segmentation
167
4,523
Headcount actions and related severance
36
—
Gross profit, as adjusted
$
461,433
$
454,216
As a % of net sales
39.9
%
32.7
%
Quarters Ended
March 30, 2024
April 1, 2023
Selling, general and administrative expenses, as reported under GAAP
$
408,821
$
392,374
As a % of net sales
35.4
%
28.2
%
Restructuring and other action-related charges:
Global Champion performance plan
(16,449
)
—
Full Potential transformation plan:
Headcount actions and related severance
(12,151
)
1,091
Supply chain segmentation
(1,940
)
—
Professional services
(490
)
(40
)
Technology
(181
)
(3,684
)
Gain on classification of assets held for sale
—
2,139
Other
(4
)
(1,104
)
Selling, general and administrative expenses, as adjusted
$
377,606
$
390,776
As a % of net sales
32.7
%
28.1
%
Quarters Ended
March 30, 2024
April 1, 2023
Operating profit, as reported under GAAP
$
52,106
$
57,319
As a % of net sales
4.5
%
4.1
%
Restructuring and other action-related charges:
Global Champion performance plan
16,752
—
Full Potential transformation plan:
Headcount actions and related severance
12,187
(1,091
)
Supply chain segmentation
2,107
4,523
Professional services
490
40
Technology
181
3,684
Gain on classification of assets held for sale
—
(2,139
)
Other
4
1,104
Operating profit, as adjusted
$
83,827
$
63,440
As a % of net sales
7.3
%
4.6
%
Quarters Ended
March 30, 2024
April 1, 2023
Interest expense, net and other expenses, as reported under GAAP
$
75,960
$
73,223
Restructuring and other action-related charges:
Loss on extinguishment of debt
—
(8,466
)
Gain on final settlement of cross currency swaps
—
1,370
Interest expense, net and other expenses, as adjusted
$
75,960
$
66,127
Quarters Ended
March 30, 2024
April 1, 2023
Loss before income taxes, as reported under GAAP
$
(23,854
)
$
(15,904
)
Restructuring and other action-related charges:
Global Champion performance plan
16,752
—
Full Potential transformation plan:
Headcount actions and related severance
12,187
(1,091
)
Supply chain segmentation
2,107
4,523
Professional services
490
40
Technology
181
3,684
Gain on classification of assets held for sale
—
(2,139
)
Other
4
1,104
Loss on extinguishment of debt
—
8,466
Gain on final settlement of cross currency swaps
—
(1,370
)
Income (loss) before income taxes, as adjusted
$
7,867
$
(2,687
)
Quarters Ended
March 30, 2024
April 1, 2023
Net loss, as reported under GAAP
$
(39,122
)
$
(34,404
)
Restructuring and other action-related charges:
Global Champion performance plan
16,752
—
Full Potential transformation plan:
Headcount actions and related severance
12,187
(1,091
)
Supply chain segmentation
2,107
4,523
Professional services
490
40
Technology
181
3,684
Gain on classification of assets held for sale
—
(2,139
)
Other
4
1,104
Loss on extinguishment of debt
—
8,466
Gain on final settlement of cross currency swaps
—
(1,370
)
Tax effect on actions
—
—
Net loss, as adjusted
$
(7,401
)
$
(21,187
)
Quarters Ended1
March 30, 2024
April 1, 2023
Diluted loss per share, as reported under GAAP
$
(0.11
)
$
(0.10
)
Restructuring and other action-related charges:
Global Champion performance plan
0.05
—
Full Potential transformation plan:
Headcount actions and related severance
0.03
0.00
Supply chain segmentation
0.01
0.01
Professional services
0.00
0.00
Technology
0.00
0.01
Gain on classification of assets held for sale
—
(0.01
)
Other
0.00
0.00
Loss on extinguishment of debt
—
0.02
Gain on final settlement of cross currency swaps
—
0.00
Tax effect on actions
—
—
Diluted loss per share, as adjusted
$
(0.02
)
$
(0.06
)
1
Amounts may not be additive due to rounding.
Including the unfavorable foreign currency impact of $3 million, global Champion sales excluding C9 Champion decreased approximately 26% in the first quarter of 2024 compared to the first quarter of 2023. On a constant currency basis, global Champion sales excluding C9 Champion decreased approximately 25% in the first quarter of 2024 compared to the first quarter of 2023.
TABLE 6-B
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
Last Twelve Months
March 30, 2024
April 1, 2023
Leverage Ratio:
EBITDA1:
Net loss
$
(22,444
)
$
(279,750
)
Interest expense, net
283,591
183,562
Income tax expense (benefit)
(10,598
)
479,022
Depreciation and amortization
105,762
104,332
Total EBITDA
356,311
487,166
Total restructuring and other action-related charges (excluding tax effect on actions)2
141,504
68,273
Other net losses, charges and expenses3
132,919
118,802
Total EBITDA, as adjusted
$
630,734
$
674,241
Net debt:
Debt (current and long-term debt and Accounts Receivable Securitization Facility excluding long-term debt issuance costs and debt discount of $34,331 and $40,055, respectively)
$
3,333,500
$
3,847,750
(Less) debt related to an unrestricted subsidiary4
(17,500
)
—
Other debt and cash adjustments5
4,043
4,640
(Less) Cash and cash equivalents
(191,216
)
(213,209
)
Net debt
$
3,128,827
$
3,639,181
Debt/Net loss6
(148.5
)
(13.8
)
Net debt/EBITDA, as adjusted7
5.0
5.4
1
Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure.
2
The last twelve months ended March 30, 2024 includes $105 million of global Champion performance plan charges, $19 million of headcount actions and related severance charges, $6 million of a loss on the sale of business and classification of assets held for sale, $5 million of technology charges, $4 million of professional services, $2 million of supply chain segmentation charges and $1 million related to other restructuring and other action-related charges. The last twelve months ended April 1, 2023 includes $21 million of supply chain segmentation charges, $16 million of professional services, $11 million of technology charges, $9 million of headcount actions and related severance charges, $8 million of a loss on extinguishment of debt, $3 million related to other restructuring and other action-related charges, $1 million of a loss on classification of assets held for sale and $(1) million of a gain on the final settlement of cross currency swap contracts. The items included in restructuring and other action-related charges are described in more detail in Table 6-A.
3
Represents other net losses, charges and expenses that can be excluded from the Company’s leverage ratio as defined under its Fifth Amended and Restated Credit Agreement, dated November 19, 2021, as amended. The last twelve months ended March 30, 2024, primarily includes $84 million of excess and obsolete inventory write-offs, $21 million in other compensation related items primarily stock compensation expense, $17 million of pension non-cash expense, $13 million in charges related to sales incentive amortization, $11 million of non-cash cloud computing expense, $1 million in charges related to the ransomware attack and extraordinary events, $(4) million of recovery of bad debt expense, $(4) million of net unrealized gains due to hedging activities and a $(6) million adjustment for interest expense on debt and amortization of debt issuance costs related to an unrestricted subsidiary. The last twelve months ended April 1, 2023, primarily includes $36 million of excess and obsolete inventory write-offs, $32 million in charges related to the ransomware attack and extraordinary events, $23 million in other compensation related items primarily stock compensation expense, $20 million of pension non-cash expense, $5 million of bad debt expense and $3 million of non-cash cloud computing expense.
4
Represents amounts outstanding under an existing accounts receivable securitization facility entered into by an unrestricted subsidiary of the Company.
5
Includes drawn and undrawn letters of credit, financing leases and cash balances in certain geographies.
6
Represents Debt divided by Net loss, which is the most comparable GAAP financial measure to Net debt/EBITDA, as adjusted.
7
Represents the Company’s leverage ratio defined as Consolidated Net Total Leverage Ratio under its Fifth Amended and Restated Credit Agreement, dated November 19, 2021, as amended, which excludes other net losses, charges and expenses in addition to restructuring and other action-related charges.
Quarters Ended
March 30, 2024
April 1, 2023
Free cash flow:
Net cash from operating activities
$
26,171
$
44,537
Capital expenditures
(20,257
)
(24,244
)
Free cash flow
$
5,914
$
20,293
TABLE 7
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of GAAP Outlook to Adjusted Outlook
(in thousands, except per share data)
(Unaudited)
Quarter Ended
Year Ended
June 29, 2024
December 28, 2024
Operating profit outlook, as calculated under GAAP
$96,000 to $111,000
$430,000 to $450,000
Restructuring and other action-related charges outlook
19,000
70,000
Operating profit outlook, as adjusted
$115,000 to $130,000
$500,000 to $520,000
Diluted earnings per share outlook, as calculated under GAAP1
$0.02 to $0.06
$0.22 to $0.28
Restructuring and other action-related charges outlook
0.05
0.20
Diluted earnings per share outlook, as adjusted
$0.07 to $0.11
$0.42 to $0.48
Cash flow from operations outlook, as calculated under GAAP
$400,000
Capital expenditures outlook
65,000
Free cash flow outlook
$335,000
1
The Company expects approximately 353 million diluted weighted average shares outstanding for the quarter ended June 29, 2024 and approximately 354 million diluted weighted average shares outstanding for the year ended December 28, 2024.
The Company is unable to reconcile projections of financial performance beyond 2024 without unreasonable efforts, because the Company cannot predict, with a reasonable degree of certainty, the type and extent of certain items that would be expected to impact these figures in 2024 and beyond, such as net sales, operating profit, tax rates and action related charges.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509559065/en/
News Media contact: Nicole Ducouer (336) 986-7090 Analysts and Investors contact: T.C. Robillard (336) 519-2115
1 Year Hanesbrands Chart |
1 Month Hanesbrands Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions