Actions will expedite Grid innovation and
deliver cost synergies
Anticipated to generate $15 to $20 million
in EBITDA benefit in 2025
LEHI,
Utah, Aug. 22, 2024 /PRNewswire/ -- Purple
Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation
company with the #1 Gel Grid technology in the world, today
announced the consolidation of its mattress production operations
into its McDonough, Georgia
facility, and the corresponding closure of two manufacturing
facilities in Salt Lake City and
Grantsville, Utah. The closure of
the Utah manufacturing facilities
is expected to be completed during the first quarter of 2025 and
the consolidation into the McDonough,
Georgia facility is expected to be completed by December 31, 2024.
"These moves enable Purple to streamline our operations and to
reinvest in technology and marketing to grow the category," said
Rob DeMartini, CEO of Purple
Innovation. "This decision was not made lightly. Over the past
year, we have driven savings through manufacturing efficiency and
supply chain initiatives, and we are confident that the
consolidation of our manufacturing footprint is an important step
to advance our Grid innovation and build momentum with our 'Path to
Premium Sleep' strategy, which will set Purple up for positive
operating cash flow and market share growth over the
long-term."
Purple will remain headquartered in Utah with its 4 showrooms; all R&D
activities will continue to be based in the Innovation Center that
Purple opened in Draper, Utah last
year. As part of the plan, the company expects to open a new
distribution center in Utah.
Purple also plans to increase capacity at its Georgia manufacturing facility. The Company
also announced plans to reduce a number of positions at the
corporate level.
These actions are expected to be completed in early 2025 and
generate $15 to $20 million in EBITDA benefit on an annualized
run-rate basis starting in 2025. The Company expects to incur
restructuring costs of $35 to
$45 million, beginning in the third
quarter of 2024 through the second quarter of 2025, of which
$26 to $32
million is non-cash. The Company does not expect these
actions to impact full-year 2024 guidance targets.
About Purple
Purple, the leading premium mattress company with the #1
Gel Grid technology in the world, the
GelFlex® Grid, thoughtfully engineers products that
make restorative sleep effortless for every kind of sleeper. The
result of over 30 years of innovation and in comfort technologies,
Purple's GelFlex Grid is the most significant advancement in
mattresses in decades and is proven to reduce aches and pains. It
instantly adapts as you move, balances temperature, relieves
pressure and offers support in all the right places. Purple
products, including mattresses, pillows, cushions, frames, sheets,
and more, can be found online at Purple.com, in 60
Purple stores and over 3,000 retailers nationwide. Sleep Better.
Live Purple.
Forward Looking Statements
Certain statements made in this release that are not historical
facts are "forward looking statements" within the meaning of the
"safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Statements based on historical data
are not intended and should not be understood to indicate the
Company's expectations regarding future events. Forward-looking
statements provide current expectations or forecasts of future
events or determinations. These forward-looking statements are not
guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
the Company's control, that could cause actual results or outcomes
to differ materially from those discussed in the forward-looking
statements. Factors that could influence the realization of
forward-looking statements include, among others: changes in
economic, financial and end-market conditions in the markets in
which we operate; fluctuations in raw material prices and cost of
labor; the financial condition of our customers and suppliers;
competitive pressures, including the need for technology
improvement, successful new product development and introduction;
changes in consumer demand, including pullbacks in consumer
spending; disruptions to our manufacturing processes; and the risk
factors outlined in the "Risk Factors" section of our Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
March 12, 2024, and in our other
filings made with the SEC. The Company does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Non-GAAP Financial Measures
EBITDA, adjusted EBITDA, adjusted net income, and adjusted net
income per diluted share are non-GAAP financial measures that
remove the impact of certain non-cash and non-recurring costs.
Management believes that the use of such non-GAAP financial
measures provides investors with additional useful information with
respect to the impact of various adjustments, which we view as a
better measure of our operating performance. Refer to the attached
table for the reconciliation of such non-GAAP financial measures to
the most comparable GAAP financial measure.
With respect to the Company's Adjusted EBITDA outlook for the
third quarter and full year 2024, a quantitative reconciliation to
the corresponding GAAP information cannot be provided without
unreasonable effort because of the inherent difficulty of
accurately forecasting the occurrence and financial impact of the
various adjusting items necessary for such reconciliation that have
not yet occurred, are out of our control, or cannot be reasonably
predicted, including but not limited to warrant liabilities and
stock based compensation. For the same reasons, the Company is
unable to assess the probable significance of the unavailable
information, which could have a material impact on its future GAAP
financial results.
Investor Contact
Stacy
Turnof, Edelman
Smithfield
purpleIR@edelmansmithfield.com
Media Contact
Alicia
Foreman, Purple Innovation
alicia@purple.com
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SOURCE Purple Innovation, Inc.