PURPLE Announces Financial Results; Also, Reports Rejection of Proposal by Capital of Settlement Proposal 

March 19, 2023  by HFBusiness Staff in Business Strategy, Industry   

Here are some highlights from the Fourth Quarter and the Year 2022:

-  Net revenue was $145.1 million, a decrease of 22.2% compared to 4Q21.
-  Gross margin increased to 35.0% from 34.7% in 4Q21.
-  Operating expenses as a percent of net revenue improved to 42.6% compared to 51.4% in 4Q21.
-  Operating loss improved $20.0 million to $(11.1) million compared to an operating loss of $(31.1) million in 4Q21
-  Net loss was $(70.2) million as compared to a net loss of $(21.8) million in 4Q21
-  EBITDA was $156.3 million compared to $(20.0) million in 4Q21.

Full Year 2022 Financial Summary (Comparisons versus Full Year 2021)²

-  Net revenue was $575.7 million, a decrease of 20.7% compared to 2021.
-  Gross margin was 36.6% compared to 40.6% in 2021
-  Operating expenses as a percent of net revenue were 43.6% compared to 43.8% in 2021.
-  Operating loss was $(40.3) million compared to an operating loss of $(23.4) million in 2021
-  Net loss was $(89.9) million as compared to net income of $3.9 million in 2021
-  EBITDA was $143.5 million compared to $14.2 million in 2021.
-  Inventories decreased 25.8% to $73.2 million compared to end of 2021.

Purple’s Special Committee of the Board of Directors also reported that Coliseum Capital Management, LLC has rejected their most recent settlement proposal put forth on March 9.

Additionally, According to Dawn Zier, chair of the special Committee, “(The proposal) provided that Coliseum-nominated directors would fill three of the six non-management director seats on the Purple Board, giving them influence over the Board in proportion to their ownership stake in the Company.”

Zier continued, “We will continue to work towards reaching a solution that will treat all parties – including Coliseum – fairly.”