01—Abstract
Summary
Summary of the 6-K filed August 8, 2024. Cited figures are marked; the original filing is the authoritative source.
SharkNinja, Inc. furnished its second-quarter 2024 results on Form 6-K dated August 8, 2024.
For the three months ended June 30, 2024, net sales rose 31.4% to $1,248.7 milliona from $950.3 million, and net income rose to $68.0 million from $11.9 million, or $0.48 per diluted share versus $0.09. Gross margin expanded to 48.1% from 41.8% of net sales, while operating expenses grew 45.6% to $497.1 million, led by sales and marketing spending of $303.2 million. Adjusted EBITDA reached $167.7 million, or 13.4% of Adjusted Net Sales, compared with $113.6 million in the prior-year quarter.
For the six months ended June 30, 2024, net sales were $2,314.9 millionb, up 28.2%, and net income was $177.7 million. Operating cash flow was negative $19.9 million, compared with positive $200.4 million a year earlier, as inventories rose to $840.5 million and accounts receivable to $1,080.1 million. Cash and cash equivalents fell to $138.1 million, and total debt, excluding deferred financing costs, was $909.8 million after $115.0 million of revolving credit draws.
Management raised its fiscal 2024 outlook on key metrics. Net sales are now expected to increase 20% to 22%, up from the prior 10% to 12% expectation, and Adjusted Net Income per diluted share is now expected between $4.05c and $4.21, up from $3.66 to $3.82. Adjusted EBITDA is now expected between $910 million and $940 million, up from $840 million to $870 million, and capital expenditures are expected at $160 million to $180 million.
02—Key points
Key Highlights
- Net sales for Q2 2024 increased 31.4% to $1,248.7 million; Food Preparation Appliances grew 84.8% and Other grew 176.2%.
- Gross margin improved to 48.1% from 41.8%, and net income rose to $68.0 million from $11.9 million.
- Adjusted EBITDA for Q2 2024 was $167.7 million, or 13.4% of Adjusted Net Sales, up from $113.6 million.
- Six-month operating cash flow was negative $19.9 million, versus $200.4 million in the prior-year period, driven by inventory and receivables increases.
- Total debt, excluding deferred financing costs, rose to $909.8 million, including $115.0 million drawn on the revolving facility; cash fell to $138.1 million.
- Fiscal 2024 outlook raised: net sales growth of 20% to 22% and Adjusted EBITDA of $910 million to $940 million.
- Customer A accounted for 32.3% of accounts receivable as of June 30, 2024, versus 22.4% at December 31, 2023.
03—Questions
Frequently Asked Questions
How did SharkNinja perform in the second quarter of 2024?
Net sales rose 31.4% to $1,248.7 million, gross margin expanded to 48.1% from 41.8%, and net income reached $68.0 million, or $0.48 per diluted share, compared with $11.9 million, or $0.09, a year earlier.
Why did operating cash flow turn negative in the first half of 2024?
Net cash used in operating activities was $19.9 million for the six months ended June 30, 2024. The filing attributes this mainly to increases in inventories of $142.3 million and accounts receivable of $100.6 million, along with a $53.0 million increase in prepaid expenses and other assets, partly offset by a $47.0 million increase in accounts payable.
What changed in SharkNinja's fiscal 2024 outlook?
The company now expects net sales to increase 20% to 22%, up from 10% to 12%, and Adjusted EBITDA of $910 million to $940 million, up from $840 million to $870 million. Adjusted Net Income per diluted share is now expected between $4.05 and $4.21, up from $3.66 to $3.82.
How much debt does SharkNinja carry and how much liquidity remains?
Total debt, excluding unamortized deferred financing costs, was $909.8 million at June 30, 2024, compared with $804.9 million at December 31, 2023. The company had $138.1 million of cash and cash equivalents and $375.2 million available under its revolving credit facility.
04—Continue