— Anticipates 13% to 15% Adjusted EBITDA
CAGR from the End of Fiscal 2015 through Fiscal 2018 ——
Targets Over 20% Adjusted EPS CAGR from the End of Fiscal 2015
through Fiscal 2018 —— Reaffirms Full Year Fiscal 2015
Sales, Adjusted EBITDA and Adjusted EPS Guidance —
Mattress Firm Holding Corp. (the “Company”) (NASDAQ: MFRM) today
announced updated targets through the fiscal year ending January
29, 2019 (“fiscal 2018”). These targets reflect only
company-operated stores and do not contemplate opportunistic
acquisitions. The Company currently anticipates fiscal 2018 net
sales of $3.4 to $3.5 billion, representing an approximately 10% to
11% compounded annual growth rate (“CAGR”) from the midpoint of its
fiscal 2015 guidance. The Company also targets fiscal 2018 Adjusted
EBITDA of approximately $375 to $395 million. As a result of this
growth in sales and Adjusted EBITDA, the Company anticipates over
20% compounded annual growth in Adjusted EPS over the three fiscal
years from the end of fiscal 2015 to the end of fiscal 2018.
Anticipated Fiscal 2018 Financial
Targets:
Fiscal
2018 (1)
Fiscal 2015-Fiscal 2018CAGR
(2)
Net Sales (in millions)
$3,400 - $3,500 10% - 11% Adjusted EBITDA (in
millions) $375 - $395 13% - 15% Annual Adjusted EPS
Growth -- 20%+
(1)
Does not take into account, or give effect
for, acquisitions that may be completed by the Company during the
presented time periods or any other events that are beyond the
Company’s reasonable control. Further these targets assume that no
significant or prolonged economic slowdown occurs.
(2)
Represents approximate compounded annual
growth rate from the midpoint of fiscal 2015 guidance through
fiscal 2018.
“We are excited about the long-term growth opportunity ahead of
us as we continue to build the first national mattress specialty
retailer,” said Steve Stagner, chief executive officer. “Over the
past several months we have focused on simultaneously integrating
the 668 stores we acquired through the multiple acquisitions that
we completed in fiscal 2014 and taking the opportunity to implement
best practices across the chain. We continue to make progress in
these integrations, and are reaffirming our outlook for fiscal
2015. Looking forward, we see significant opportunities to grow
sales and expand margins as we execute our Relative Market Share
model. As we do this we believe we will continue to create
long-term value for our shareholders.”
2015 Financial Guidance
The Company also reaffirmed its full year fiscal 2015 financial
outlook for sales, Adjusted EBITDA and Adjusted EPS. This outlook
is based on year-to-date results, continued volatility inside
oil-affected markets, and the discontinuation of the Mattress Pro
concept. As previously stated, these projections are forecasts and
are intended solely to give investors an understanding of
management’s expectations for the full fiscal year in light of the
recent consumer environment and sales trends. The projections do
not take into account, or give effect for, acquisitions that may be
completed by the Company during the fiscal year or any other events
that are beyond the Company’s reasonable control. Please refer to
“Reconciliation of Reported (GAAP) to Adjusted Statements of
Operations Data” in the second quarter earnings release dated
September 11, 2015 for a reconciliation of GAAP EPS to Adjusted EPS
and other information which is not calculated on a GAAP basis.
Adjusted data for future periods reflects management’s reasonable
estimates of appropriate adjustments based on historical
experience. For the 52-week fiscal year ending February 2, 2016
(“fiscal 2015”), the Company continues to anticipate:
Fiscal 2015 %
Growth (3) New Store Growth (net of closures) 250 - 270
-- Net Sales (in millions) $2,530 - $2,550
41% Comparable-Store Sales Growth Low Single Digit
-- Adjusted EBITDA (in millions) $253 - $262
35% Adjusted EPS $2.30 to $2.45 17%
(3)
Represents approximate growth from actual
results for the 53-weeks ended February 3, 2015 (excluding the
incremental sales impact of the 53rd week for purposes of
comparable-store sales growth), to the midpoint of the fiscal 2015
guidance.
Webcast Information
As previously announced, the Company will host an analyst day
today. The event will begin at 12:30 pm Eastern Time and conclude
at approximately 3:30 pm Eastern Time, and will include
presentations by senior management, followed by a question and
answer session. A live audio and video webcast of the event
including slide presentations will be accessible via the Company’s
website, ir.mattressfirm.com, under “Presentations”. A replay of
the webcast along with slide presentations will be available on the
Company’s website through December 31, 2015.
Forward-Looking Statements
Certain statements contained in this press release are not based
on historical fact and are “forward-looking statements” within the
meaning of applicable federal securities laws and regulations. In
many cases, you can identify forward-looking statements by
terminology such as “may,” “would,” “should,” “could,” “forecast,”
“feel,” “project,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “intend,” “potential,” “continue” or the
negative of these terms or other comparable terminology; however,
not all forward-looking statements contain these identifying words.
The forward-looking statements contained in this press release,
such as those relating to our net sales, GAAP and Adjusted EPS and
net store unit change for fiscal year 2015 and any anticipated
effects of any recent acquisitions, are subject to various risks
and uncertainties, including but not limited to downturns in the
economy; reduction in discretionary spending by consumers; our
ability to execute our key business strategies and advance our
market-level profitability; our ability to profitably open and
operate new stores and capture additional market share; our
relationship with our primary mattress suppliers; our dependence on
a few key employees; the possible impairment of our goodwill or
other acquired intangible assets; the effect of our planned growth
and the integration of our acquisitions on our business
infrastructure; the impact of seasonality on our financial results
and comparable-store sales; our ability to raise adequate capital
to support our expansion strategy; our success in pursuing and
completing strategic acquisitions; the effectiveness and efficiency
of our advertising expenditures; our success in keeping warranty
claims and comfort exchange return rates within acceptable levels;
our ability to deliver our products in a timely manner; our status
as a holding company with no business operations; our ability to
anticipate consumer trends; risks related to our primary
stockholder, J.W. Childs Associates, L.P.; heightened competition;
changes in applicable regulations; risks related to our franchises,
including our lack of control over their operation and our
liabilities if they default on note or lease obligations; risks
related to our stock and other factors set forth under “Risk
Factors” in our Annual Report on Form 10-K for the fiscal year
ended February 3, 2015 filed with the Securities and Exchange
Commission (“SEC”) on April 3, 2015 and our other SEC filings.
Forward-looking statements relate to future events or our future
financial performance and reflect management’s expectations or
beliefs concerning future events as of the date of this press
release. Actual results of operations may differ materially from
those set forth in any forward-looking statements, and the
inclusion of a projection or forward-looking statement in this
press release should not be regarded as a representation by us that
our plans or objectives will be achieved. We do not undertake to
publicly update or revise any of these forward-looking statements,
whether as a result of new information, future events or
otherwise.
About Mattress Firm Holding Corp.
With more than 2,300 company-operated and franchised stores
across 41 states, Mattress Firm Holding Corp. (MFRM) has the
largest geographic footprint in the United States among multi-brand
mattress retailers. Founded in 1986, Houston-based MFRM is the
nation's leading specialty bedding retailer with over $2.2 billion
in sales over the past 12 months. MFRM, through its family of
brands, including Mattress Firm and Sleep Train, offers a broad
selection of both traditional and specialty mattresses, bedding
accessories and other related products from leading manufacturers,
including Sealy, Tempur-Pedic, Serta, Simmons, Stearns &
Foster, and Hampton & Rhodes. More information is available at
www.mattressfirm.com. MFRM's website is not part of this press
release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151022005388/en/
Mattress Firm Holding Corp.Investor Relations
Contact:Scott McKinney, 713-328-3417Vice President of Investor
Relationsir@mfrm.comorMedia Contact:Kimberly Wise,
214-646-1659kwise@jacksonspalding.com
Mattress Firm Holding Corp. (MM) (NASDAQ:MFRM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mattress Firm Holding Corp. (MM) (NASDAQ:MFRM)
Historical Stock Chart
From Jul 2023 to Jul 2024